Where Are The Most Affordable Homes In NSW?
19 September 2018
Where Can The Average Aussie Income Earner Buy The Average Aussie House?
With house prices going through the roof over the past couple of years and wages growth being relatively stagnate, living expenses and housing affordability is certainly a hot topic.
This week, just out of interest, we asked ourselves the question
Where can the average Aussie household actually afford the purchase the median house?
Sourcing data from www.abs.gov.au and referring the lending policies of www.cba.com.au we came up with the following scenario
Let’s Make Some Assumptions!
Single Aussie Adult earns on average - $67,860
Using some the of CBA’s loan approval criteria, they can borrow about $400,000, throw on a 10% deposit and you could be looking at acquiring property to the value of say $440,000.
Now this is just the Median house price, so you will find property for this price all over Sydney, but they are not reflective of the median house price.
Below is a list of Towns and Cities where the average Australian can afford the buy the average house. Also included are areas outside of Sydney where you may have thought you be able to afford to buy, but will find it more difficult.
|
Sub $440,000 |
Value |
|
Casino |
$285,000 |
|
Cooma |
$290,000 |
|
Lithgow |
$335,000 |
|
Taree |
$340,000 |
|
Scone |
$365,000 |
|
Cessnock |
$367,000 |
|
Raymond Terrace |
$390,000 |
|
Bathurst |
$391,000 |
|
Mudgee |
$394,000 |
|
Maitland |
$395,000 |
|
Orange |
$401,000 |
|
Wagga Wagga |
$410,000 |
|
Dubbo |
$414,000 |
|
Goulburn |
$419,000 |
|
Over $440,000 |
Value |
|
Nowra |
$457,000 |
|
Coffs Harbour |
$480,000 |
|
Albury |
$506,000 |
|
Braidwood |
$520,000 |
|
Queanbeyan |
$530,000 |
|
Ballina |
$562,000 |
|
Port Macquarie |
$575,000 |
|
Nelson bay |
$660,000 |
|
Tweed Heads |
$685,000 |
|
Mittagong |
$710,000 |
|
Tweed Heads |
$722,000 |
|
Gosford |
$905,000 |
|
Bowral |
$1,035,000 |
|
Newcastle CBD |
$1,405,000 |
Source - realestate.com.au
What’s the
Point of this Exercise?
I wanted to see where there was still scope in the markets for affordable housing. If you are looking at either buying your first home or your first investment property, have a look at where the average Aussie can still afford to buy a decent house in a decent location.
If you Map these Locations out, you will notice that anything within a couple of hours North or South of Sydney, say between Newcastle and Canberra is basically priced out along the coast.
Heading West the first affordable town is Lithgow, which is the last town west that is still serviced by the Sydney electric rail network. Heading further west and you have the option of number vibrant and expanding towns like Bathurst, Orange, Mudgee and Dubbo.
The way these towns are currently performing is being driven by their quality housing stock at affordable prices, and the job and lifestyle opportunities that they offer.
When looking at buying or investing in real estate, take the time to consider these markets as real and affordable growth options.
If you would like any further information about how or where to invest in these affordable markets feel free to drop us line and have chat.
Happy investing.
