Mon. Nov 29th, 2021

Homes a short drive from the beach or town are still affordable for first home buyers with a budget of $ 400,000.

Mortgage broker Aussie recommends zip codes where borrowers can get a loan with a deposit of $ 40,000, the price of a new car, and not struggle to pay their bills on an average salary.

On the central coast, just over an hour’s drive north of Sydney, a person who can work from home can still buy a $ 415,000 house in Wyee in the Lake Macquarie area, CoreLogic found data on median prices for October.

They would only need $ 41,500 for a minimum deposit of 10 percent if they were willing to pay the lender’s mortgage insurance.

Homes a short drive from the beach or town are still affordable for first home buyers with a budget of $ 400,000.  Mortgage broker Aussie recommends zip codes where borrowers can get a loan with a deposit of $ 40,000 or the price of a new car and not struggle to pay their bills on an average salary (the picture is an Aussie card showing more affordable areas in purple)

Homes a short drive from the beach or town are still affordable for first home buyers with a budget of $ 400,000. Mortgage broker Aussie recommends zip codes where borrowers can get a loan with a deposit of $ 40,000 or the price of a new car and not struggle to pay their bills on an average salary (the picture is an Aussie card showing more affordable areas in purple)

The median price is also less than half the Central Coast’s midpoint house price of $ 954,330, which would buy something with a backyard on Woy Woy.

In Brisbane, the average house price on Acacia Ridge just 15 miles south of town is $ 452,500 – requiring a deposit of just $ 45,250.

This is also significantly less than Brisbane’s median house price of $ 731,392.

North of Brisbane, at Deception Bay, house prices in the middle are still affordable at $ 425,250 – requiring a security deposit of only $ 42,525.

In Sydney, a person with a budget of $ 400,000 who wants to be a middle distance from the city must buy an apartment.

Lakemba, in the city’s multicultural southwest, is a half-hour train ride from the city, and the average apartment price in October was only $ 382,500 – or less than half the Sydney unit price in the middle of $ 837,262.

A borrower would be able to buy with a 10 percent deposit of only $ 38,250.

On the central coast, just over an hour's drive north of Sydney, a person who can work from home can still buy a house for $ 415,000 in Wyee in the Lake Macquarie area, CoreLogic data for October found (picture is a house , which was sold for 450,000 USD)

On the central coast, just over an hour’s drive north of Sydney, a person who can work from home can still buy a house for $ 415,000 in Wyee in the Lake Macquarie area, CoreLogic data for October found (picture is a house , which was sold for 450,000 USD)

Those looking for an affordable house in Sydney can try Box Hill, 50 km northwest of the Central Business District, where the average house price is $ 611,500.

Brad Cramb, Aussie's CEO of distribution, said stricter lending rules meant buyers had to reconsider their choices

Brad Cramb, Aussie’s CEO of distribution, said stricter lending rules meant buyers had to reconsider their choices

That’s less than half of Sydney’s median house price of $ 1.334 million after an annual increase of 30.4 percent.

Someone only needs a 10 percent deposit of $ 61,150 to get a loan.

With a 20 percent deposit, a borrower with an average full-time salary of $ 90,329 can borrow $ 489,200 and avoid being in mortgage stress.

In Melbourne, the center price of a city apartment is only $ 426,750, with a security deposit of $ 42,675 enough to get a loan.

The median price for an apartment on St Kilda beach is $ 550,000 – which requires a 10 percent deposit of only $ 55,000.

The Australian Prudential Regulation Authority considers a debt ratio of six to be risky and has since November 1 required lenders to assess a borrower’s ability to cope with a three percentage point increase in mortgage rates.

In Brisbane, the average house price on Acacia Ridge just 15 miles south of town is $ 452,500 - requires a deposit of only $ 45,250 (pictured is a house sold for $ 450,000)

In Brisbane, the average house price on Acacia Ridge just 15 miles south of town is $ 452,500 – requires a deposit of only $ 45,250 (pictured is a house sold for $ 450,000)

Brad Cramb, Aussie’s CEO of distribution, said stricter lending rules meant buyers had to reconsider their choices.

Commonwealth Bank housing price forecasts

SYDNEY: 2021 (At 27 percent); 2022: (At 6 pct.); 2023 (12 percent down)

MELBOURNE: 2021 (At 17 percent); 2022 (At 8 pct.); 2023 (10 percent down)

CANBERRA: 2021 (At 26 percent); 2022 (Op 7 pct.); 2023 (10 percent down)

BRISBANE: 2021 (At 26 percent); 2022 (Op 9 pct.); 2023 (8 percent down)

ADELAIDE: 2021 (At 22 percent); 2022 (Op 6 pct.); 2023 (8 percent down)

PERTH: 2021 (At 13 percent); 2022 (At 3 pct.); 2023 (down 9 percent)

HOBART: 2021 (At 29 percent); 2022 (At 5 pct.); 2023 (12 percent down)

DARWIN: 2021 (At 17 percent); 2022 (Op 7 pct.); 2023 (8 percent down)

Source: Commonwealth Bank of Australia forecasts for homes or houses and units combined

“With rising property prices and the recent changes to APRA loan criteria creating some concerns about affordability, we wanted to show homebuyers that there are still opportunities to enter the real estate market if you expand your suburban search and adapt your thoughts on how to you may structure your home loan, ‘he said.

‘You do not always have to have a 20 percent deposit to buy a home.’

Commonwealth Bank, a major shareholder in Aussie, predicts that Sydney property prices will rise by 27 percent in 2021 before falling to 6 percent in 2022 and falling by 12 percent in 2023.

Philip Lowe, Governor of the Reserve Bank of Australia, now indicates that cash rates will be raised from a record low of 0.1 per cent in 2023 instead of 2024 as previously promised.

But the Commonwealth Bank’s head of the Australian economy, Gareth Aird, predicts that interest rates will now be raised in November 2022, marking the first cash rate hike in 12 years.

“The Australian housing market is in the twilight of an incredible boom that has been driven by record low mortgage rates,” he said.

Aird now predicts that the Reserve Bank will raise the cash rate to 1.25 percent in September 2023, a level not seen since mid-2019, which ‘is at the heart of our expectation that house prices will fall’.

Should this prediction come true, the RBA would raise interest rates five times, each time by 0.25 percentage points, judging by previous moves.

In the year to October, house and apartment values ​​rose nationwide by 21.6 percent, the sharpest annual increase since early 1989.

In comparison, wages rose by only 2.2 per cent in the year to September.

The centerpiece of the $ 686,339 national property price is now so dear that a person earning an average full-time salary of $ 90,329 owes the bank six times their salary, even with a 20 percent deposit.

In Sydney, a person with a budget of $ 400,000 who wants to be a middle distance from the city must buy an apartment.  Lakemba, in the city's multicultural southwest, is a half-hour train ride from the city, and the average apartment price in October was only $ 382,500 - or less than half the higher Sydney average price of $ 837,262 (pictured is a two-bedroom unit on the market for $ 370,000 to $ 405,000)

In Sydney, a person with a budget of $ 400,000 who wants to be a middle distance from the city must buy an apartment. Lakemba, in the city’s multicultural southwest, is a half-hour train ride from the city, and the average apartment price in October was only $ 382,500 – or less than half the higher Sydney average price of $ 837,262 (pictured is a two-bedroom unit on the market for $ 370,000 to $ 405,000)

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