What are the best suburbs for first home buyers?

By the resi financial blog team, 22 November 2013

What are the best suburbs for first home buyers?

Deciding on where to take out your first home loan can be a challenge, with property prices on the rise in many of Australia's most sought-after locations. 

However, with some of the best variable home loan rates filtering through due to record-low interest rates, now may be the time to consider taking the plunge.

As such, RP Data research director Tim Lawless has given his top picks for the best suburbs for first home buyers currently entering the NSW, Victoria and Queensland markets. 

Sydney

Whether you are looking for the best fixed interest rates or a variable rate mortgage, Sydney still remains the priciest city in which to buy property.

According to Mr Lawless, being a first home buyer in Sydney "is tough", with a median house price of $705,000.

"More first home buyers are sacrificing the back yard and opting for higher density living such as a town home or apartment," he explained.

"Personally, I think Sydney is the only city where I would be seeking an apartment over a house so I could buy closer to the city and social precincts."

Based on the average figure for loans for first home buyers in Sydney, along with a 20 per cent deposit, Mr Lawless said the suburb of Cambridge Park is a tempting proposition.

Melbourne

With prices having risen nearly 55 per cent in five years, Melbourne's affordability for first home buyers has been stretched.

However, with a median house price of $595,000, it remains a cheaper option than Sydney.

Mr Lawless said typical loans for first home buyers and a 20 per cent deposit total around $340,000 in the city, making Hoppers Crossing in the Wyndham council region a good option.

"The suburb is serviced by its own train station and has efficient access to the Princes Freeway," he explained.

"The average land area at Hoppers Crossing is 625 sq m, highlighting that this suburb typically shows large block sizes for detached housing."

Brisbane

The Brisbane housing market has seen dwelling values rise by just one per cent since January 2009 - compared with 36 per cent and 35 per cent in Melbourne and Sydney respectively.

This gives first home buyers a wider selection of housing options closer to the CBD, with loans and deposits averaging around $333,000 for this demographic.

"There are 79 suburbs across Greater Brisbane with a median house value equal to or lower than $340,000, with most of these suburbs located around the city fringe in the council regions of Ipswich, Logan and Moreton Bay," Mr Lawless stated.

His top pick for Brisbane is Strathpine, which is 19 km north of Brisbane CBD and is serviced by a train station and access to the Gateway Motorway, Bruce Highway and Gympie arterial road.

Categories: Home Loans