More real estate buyers are considering relocating as they struggle to put together their security deposits as home prices soar.
At the end of last year, Sydney man Matthew Brophy finally found a way around the problem of affordable housing. He and his wife decided to buy and relocate their home about 13 km from Brisbane’s CBD.
Brophy, a school teacher in her early 40s, grew up in the northwestern part of Sydney and was keen to settle in the area. However, he couldn’t find any property in Seven Hills or nearby suburbs that fit his budget.
In contrast, he secured a four-bedroom Brisbane property in a 700-square-meter block for about $ 600,000.
“The price in Brisbane was very cheap, especially when it came to being close to the city and having a mortgage that was reasonably comfortable to pay for one wage,” he said.
Brophy is part of the growing trend of future homebuyers heading to the interstate.
According to a recent survey of 1,028 first homebuyers by the comparison site Finder, one in five is looking for the first property in a different state than where they currently live.
According to the report, a quarter of the first homebuyers in New South Wales (NSW) are far more than those living in Queensland (19%) or Victoria (17%), another state. You may consider buying real estate at.
Finder mortgage spokesman Sarah Meginson said, “Some people are looking at real estate in other parts of the country that are more affordable, and many feel the pressure to buy at low interest rates. I have. “
She said the impact of COVID-19 has also caused a surge in demand for real estate in the region as residents are considering a more relaxed lifestyle.
Home prices in March showed the highest monthly growth in 32 years, increasing the burden of closing home deposits.
According to a Homeloans.com.au survey, one-third of Australian mortgage holders took more than five years to save for deposits. Still, deposits are often not enough.
Studies show that with a standard loan-to-value ratio of 80%, Sydney and Melbourne have median home prices of $ 896,000 and $ 718,000, respectively, but with a deposit of $ 100,000 in New South Wales and Victoria. $ 480,000 worth of real estate will be secured.
This is a situation that Brophy was familiar with when looking for a home in Sydney.
“There was always [the] Uncertainty about when to buy in Sydney. It seemed like this unattainable goal, as home prices were rising by the time we got a 20% deposit, “he said.
Median home prices in Brisbane, Perth and Darwin are low, making it easy to buy real estate with the same $ 100,000 deposit.
“The heat of the housing market has caused many first homebuyers to worry that buying a dream home will lower prices. As a result, borrowers will be at the door, such as at their mother’s or father’s bank. We’re looking for other solutions to help you step in, “said Scott McWilliam, CEO of Homeloans.
Mortgage providers launched a new product this week called Quick Start. This allows a qualified borrower to secure a mortgage with a deposit of at least 5%.
By Prashant Mehra