Home loans customers 'may pay more for houses in Sydney'

Monday 24 August 2009

Article by Mozo

Sydney properties are going to increase in value, in news that may be of interest to those looking into low interest home loans.

According to the Investors Club, home loans customers may be paying as much as $100,000 for a house in the next two years.

It claimed an increase in population, coupled with a shortage of accommodation will add to the boom in prices.

Kevin Young, president of the organisation, pointed out that a similar situation presented itself between 2002 and 2004 under comparable circumstances.

He said Sydney property costs have been receding for the last five years.

"In contrast," he commented, "other capital cities have recorded major growth in their median house prices during this five-year period, with the median house price in Perth, for example, jumping by around $200,000."

When starting a family, people should pay off more of their home loan to begin with in order to create a buffer, which can be used to cushion finances should a household encounter difficult, according to Chris Acret of the Smartline Personal Mortgage Advisors.

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