Go west to find affordable Sydney locations
Sydney first home buyers should consider looking at suburbs further from the CBD, with good transport links, according to HTW’s Month in Review: March 2017.
The valuation firm says Hurstville and Sutherland are hubs on the eastern suburbs/Illawarra railway line which may be attractive options.
“First home buyers should be cautious of areas where a large number of units have been constructed and are about to commence as this could lead to an oversupply and put downward pressure on both prices and rents,” the report says.
“Botany/Mascot and Waterloo/ Zetland/Green Square in the inner-south, and Miranda in the Sutherland Shire are potential areas of concern.”
“Just remember if you’re a first home buyer stretching yourself too thin by purchasing something you can just barely afford, is risky – interest rates will start to rise at some stage so it is important to have a buffer built-in to your ability to finance your loan.”
Options are limited for first time buyers throughout greater Sydney and surging prices for the past few years has made it difficult to get into the market.
CoreLogic reports the median house price is currently sitting at $850,000, with a 20% deposit this translates to $170,000.
“The two biggest issues young buyers and first home buyers need to address are price and location. Firstly work out what is affordable and sort a mortgage that is serviceable,” HTW says.
It says the main areas for affordable housing and entry level investment with long term growth prospects are located on the outskirts of Sydney –
• Outer western Sydney, suburbs such as Penrith; Kingswood; Jordan Springs; Ropes Crossing with a median price for a 3-bedroom house at $570,000; $530,000; $625,000 and $595,000 respectfully. (domain)
• South west of Sydney, suburbs such as Leppington, Gregory Hills and Oran Park requiring $660,000 to $700,000 for the same 3-bedroom product.
“New estates within the south west growth precinct present solid long term growth opportunities thanks to the substantial infrastructure spending including Badgerys Creek Airport, investment in surrounding employment areas and updates to transport links.
“As recent times has shown us if you want growth then follow the infrastructure.
“We note land in Austral within a recently released subdivision starts from circa $360,000 and 3-bedroom house and land packages from $615,000, well below the Sydney wide median figure of $850,000.
“In addition to the lower entry point, this region presents a good option for both investors and owner-occupiers thanks to depreciation benefits, government incentives of buying a new property and most importantly capital growth prospects.”
A three bedroom house at 44 Allard Street, Penrith (above) has been listed for $640,000.
Similarly a three bedroom house at 16 Maiden Street, Ropes Crossing (below) has been listed for $629,000.
