property ladder

Here’s where should you be buying your dream home or getting your foot on the property ladder

PHOTO: Zero interest rates could stop young people from getting into the housing market after the coronavirus recession is over. House prices in October rose in every capital city except Melbourne (Doncaster house pictured) even before the latest interest rate cut

  • Home buyers can score cheap mortgages by moving out of the city to suburbs
  • Regional and rural towns are becoming more popular due to work flexibility 
  • Covid work from home requirements encouraged people to move from the city 
  • Home buyers can pay less than $250 a week for a mortgage in some towns

Families can get their foot on the property ladder by buying up cheap housing across Australia – as long as they’re willing to move from the city and into regional and rural towns.

Three bedroom houses are selling for under $300,000 in every state and territory, with many suburbs offering mortgage payments of just $250 a week.

The Covid crisis has forced white collar workers out of offices and allowed more flexible work-from-home arrangements, allowing families to reconsider their priorities and needs.

In particular, people are realising they no longer need to live closer to the city and their offices to maintain a healthy work-life balance.

Instead they are increasingly turning to small rural towns like Albury in New South Wales and Horsham in Victoria to save some money on mortgage repayments.

North Albury's median house price is $250,000 according to Domain, which means a weekly mortgage repayment is as little as $192

North Albury’s median house price is $250,000 according to Domain, which means a weekly mortgage repayment is as little as $192

 

New South Wales 

North Albury’s median house price is $250,000, which means a weekly mortgage repayment is as little as $192, according to Domain’s Loan Finder’s home loan repayment calculator.

This is based on a 20 per cent deposit and a 2.9 per cent interest rate.

The town is about 460km southwest of Sydney, and was largely out of reach for Sydneysiders prior to the pandemic.

According to James Seymour from PJ Murphy Real Estate, the area has attracted plenty of people from the city.

‘The main industry in the region is health – it used to be manufacturing – and education is the next. Also the Australian Tax Office is in Albury. That’s a big employer,’ Mr Seymour said.

 

AUSTRALIA’S CHEAPEST HOME LOANS

Reduce Home Loans Rate Cutter Variable: 1.77 per cent

Homestar Finance Star Gold variable: 1.79 per cent

Pacific Mortgage Group variable loans: 1.89 per cent

UBank three-year fixed rate: 1.95 per cent

National Australia Bank four-year fixed rate: 1.98 per cent

Commonwealth Bank of Australia Wealth Package four-year fixed rate: 1.99 per cent

Westpac Premier Advantage Package four-year fixed rate: 1.99 per cent

ANZ Breakfree package one, two three-year fixed rate: 2.09 per cent

NAB two and three-year fixed rate: 2.09 per cent

Westpac Premier Advantage Packet two and three-year fixed rate: 2.09 per cent

CBA two and three-year fixed: 2.14 per cent

CBA one-year fixed: 2.19 per cent

Athena variable loans: 2.19 per cent

Freedom Lend: 2.19 per cent

ANZ four and five-year fixed rate: 2.29 per cent

Source: Canstar, Finder, major banks

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