OPINION: Sydneysiders set to migrate north
OPINION:
Throughout April 2021, national property values increased 1.8 per cent; a whopping six times the average monthly movement in property prices for the past decade. For the typical Australian home, that signals an increase of $11,240 in value in just one month, according to CoreLogic. In markets like Sydney, that figure is likely to be much higher.
It’s no wonder housing affordability is on the decline. CoreLogic reports that middle-income households in Sydney can’t afford 75.5 per cent of Sydney houses and 41 per cent of Sydney units.
For many Sydneysiders, buying a home in Sydney will simply become unaffordable and unattainable. For those that do stretch themselves, they’ll be burdened with a very large mortgage debt in danger of becoming unserviceable once interest rates eventually rise. So, what’s the solution?
Sydneysiders to escape north
What we’re likely to see is a migration north in search of cheaper housing, a better lifestyle and a more affordable cost of living. Places like the Central Coast will prove popular for those working in Sydney and willing to commute.
Other areas like Brisbane with a strong jobs market will also attract Sydneysiders.
When you compare the house prices you can understand the appeal. Let’s look at a few examples.
In Windsor in Brisbane, about 6km from the CBD, these spacious luxury one-bedroom apartments start at $380,000. You’d be hard-pressed to find an apartment for this price in Sydney, let alone one so desirable.
On Brisbane’s Queen St, perched on the river, is this luxury development boasting brand new one, two and four-bedroom apartments starting at $730,000 in the heart of the city.
Ascot in Brisbane is one of Brisbane’s most expensive and affluent riverside suburbs, about 7-8km from the CBD. For these brand new three-bedroom apartments, it will set you back around $1,230,000. That’s close to Sydney’s median property price, but buyers get a brand new luxury apartment in one of the most sought after locations in Brisbane.
Is leaving Sydney the best option for me?
If you feel like you’re stuck in the rat race and can’t get ahead, relocating out of Sydney might be a good option for you. It’s best to do extensive research on which areas have strong job opportunities in your field and will support the lifestyle you want. Don’t be enticed by more affordable housing alone.
If you feel like you’re being priced out of the Sydney market, leaving Sydney isn’t the only option. Renting a home in Sydney while investing interstate (known as rentvesting) is one option you may want to consider to build wealth without needing to leave.
In fact, with the exodus north, an investment in an area like South East Queensland is likely to be a savvy choice as demand pushes up prices and capital growth prospects for investors.
If the investment performs well over time, the equity could potentially be used as a deposit to fund a future house deposit in Sydney.
