If you’re looking to buy a residential property in Brisbane, home prices in the city might no longer be more affordable than Melbourne and Sydney.
ANZ economists believe that the city’s housing market may have reached its peak. Analysts expect prices there to remain steady, while those in the two other cities will fall by 10 per cent.
Home buyers should then consider a purchase in the suburbs near capital cities. If you still want to buy a house in Melbourne, for instance, a house and land for sale around Wyndham Vale, Victoria, could be a better choice. Aspiring owner-occupiers may be better off looking for properties in undeveloped areas.
Those who could wait to build their homes will likely save more money in the process. Stand-alone houses in these undeveloped areas also have a better chance of gaining a higher resale value, compared with apartments.
In Brisbane, a report showed that almost 30 per cent of apartment resales between January and March were bought at a profit loss.
Financing a Home
The expensive median home prices in Australia’s capital cities serve as another reason why it’s better to acquire a house in suburban areas. First-time home buyers in Melbourne will need to earn an annual income of $131,830 to avoid mortgage stress.
The average home price in the city costs more than $813,000. Those in Sydney will need to earn more at almost $162,000 per year to avoid mortgage stress, while buyers in Brisbane should have an annual income of $87,343.
A home purchase in a suburb seems the best option for now, especially for those who find it too difficult to pay for high prices in the city. When choosing among different properties, consider a master-planned development that has a strategic link to many establishments.