More affordable homes in outer suburbs, says PropTrack

Property research company PropTrack suggests that home loan repayments are more affordable in some outer areas of Australia’s capital cities and some regional areas too.

For example, the western area of Melbourne, or Ipswich in Brisbane (39 kilometres from the CBD) might equate to a mortgage repayment that is somewhat more affordable relative to incomes, based on data from PropTrack. 

So if you are looking to buy a home, it pays to be picky. Your home loan repayments will obviously be impacted by the popularity of your chosen suburb - and where it’s located!

With this in mind, let’s get into some reasons for why buying a home in outer locations could be worth thinking about.

Lower home loan costs seen in outer suburbs

According to PropTrack, some outer suburbs are more affordable in the sense that your mortgage costs might better suit an average income. For example, if you purchase a house in Fisherman Bay in South Australia, you are likely to find homes priced at around $200,000 - $300,000, based on current Domain listings. 

PropTrack notes in its report that for a person on, say, $61,000 annual salary, your mortgage repayments on such a property in this location would be significantly easier to handle than some of the higher priced central suburbs of Adelaide, for example. 

So, in a cheaper spot where your proposed repayment amounts can be lowered, your home loan overall would clearly become more manageable over the long haul. 

And aiming for an affordable home could also mean that your initial deposit would be smaller, giving you more flexibility to put money towards paying off your home. 

In saying that, maybe your next move is to know how to save for a deposit, and whether purchasing a property in the outer suburbs might be a better alternative.

Seeking more affordable mortgage repayments

PropTrack notes that the burden of mortgage repayments is relative to income, where in a city like Sydney or Melbourne, average incomes tend to be higher and so property prices are typically higher and have been known to escalate.

Meanwhile, cheaper properties in the outer suburbs of your capital city, or nearby regional areas might just be worth the effort. The lower price points generally will be less burdensome on an average income. 

So, it’s important to carry out your own research to find a home that’s suitable for you. For instance, to figure out an estimate of your monthly repayments, you might try using a mortgage repayment calculator.

If you’re ready to begin your property journey, why not check out some of the best home loans on the market that our experts have tracked. You can start comparing your top picks below!