We'd all love a palatial five bedroom palace in the heart of Sydney, with a spa on the roof, and luckily dreams are free. For most of us, Australian house prices mean that we have to look to more modest locations to get onto the market.
First home buyers in particular have to be creative and search for a property that's affordable, yet still boasts the features that they want in a home. This may be easier than buying a mansion in Darling Harbour, but it's no mean feat.
To help make it just a little easier and get you started the right way, here are five of Australia's best first home buyer locations.
Just 23 kilometres out of NSW's main centre you'll find Parramatta, a fast-growing area that's often referred to as Sydney's second CBD. Sydney locals will be similar with Parra, but many may not know that it boasts world heritage attractions, food, drink and nightlife to rival any in Australia – and most importantly, a reasonably affordable property market.
Houses here may be out of reach of Sydney's first home buyers, with a Residex reported median value of almost $1.2million. However, units are far more affordable, with a median at just over half that number – $613,000. This means half the units in the city will be under that value, which is where the opportunity for first home buyers lies.
We'd all love a palatial five bedroom palace in the heart of Sydney, with a spa on the roof. Luckily dreams are free.
If you're willing to compromise and live in a unit instead of a detached house, Parramatta offers a lifestyle and conveniences, comparable to central Sydney (at a better price).
Apartments aren't for everyone, and unfortunately, if you're looking exclusively for a detached home that can make buying your first home extremely difficult here in Sydney. Despite that there's still pockets of affordability if you know where to look.
Ashcroft, 35 km out of the city centre, is one such place. Your Investment Property data shows that here the average home is valued at just $620,000, a number that may be just within the limits of most first home buyers.
Buying a detached house a short distance from Sydney has long been assumed to be near impossible for first home buyers. Ashcroft is proof that that's not true.
First home buyers in Australia are very familiar with the idea of sacrificing right now, for future opportunity. Buying your first home in Springwood is one example of when those sacrifices are likely to pay considerable dividends in future. This location may not impress buyers, now but that could be all about to change.
This little town is situated directly in between the Gold Coast and Brisbane, and is slated for considerable development down the track. In fact, the Courier Mail spoke to council members last year, revealing that their was significant interest from developers, as well as comprehensive plans to turn Springwood into a high-tech smart city of the future.
Springwood has big things in its future, so first home buyers should get in while property values are still low.
It's clear that Springwood has big things in its future, so first home buyers should get in while property values are still low. Residex shows that the median unit value is only $267,000, while houses go for just over $500,000. Prices have been increasing by between 4 and 8 per cent over the last few years – so you better get in quick.
Rocklea is just south of Brisbane central, offering a safe and closeknit community, and low prices that make is one of the best places to buy your first home in Queensland. In fact, it recently topped CoreLogic RP Data's list of the most affordable suburbs within 10km of the Brisbane, with a median house value of just $390,000.
At that incredibly low average price buyers may be able to get more than they expect here. In Rocklea, three or even four bedroom homes, with generous sections may even be affordable, if first home buyers act soon.
Alternatively those on a smaller budget could be able to get in sooner than they may have believed possible, by buying here.
Scullin is one of the most tightly held suburbs in Canberra, boasting large section sizes, plenty green space, a safe family-orientated community and proximity to the city. The best part is that property here is incredibly affordable, at price points ideal for first home buyers.
CoreLogic puts the average house value at under $500,000, but it's possible to find property much cheaper than that. The average home loan value here is under $200,000, which speaks to the affordability of the area.
No matter how affordable the property you're buying may be, it's all for nothing if you don't secure a first home loan. The team here at Mortgageport are here to help you with that, offering access to hundreds of loan products and expert advice – from the day you apply for your loan right through to the day you settle.