Embarking on the journey of homeownership is no longer a distant dream for first-time buyers, as affordable entry-level homes are well within reach across the nation.
This comes after months of formidable challenges for first home buyers to enter the market, following post covid surges.
As we witness the resurgence of first-home buyers, the latest lending data from the Australian Bureau of Statistics paints an optimistic picture. After hitting decade lows in early 2023, first-home buyer numbers have rebounded to pre-Covid levels, signalling a renewed vigour in the market. This positive trend is further fueled by a more stabilised interest rate environment, offering buyers a sense of confidence.
Yet, as with any real estate landscape, compromises on desired location and property type might be in order. According to PropTrack economist Anne Flaherty, the past 12 months have posed challenges for first-home buyers. The rising interest rates since 2022 have led to a decrease of around 30% in the average amount a homebuyer can borrow. Despite this, property prices have not mirrored the decline, often sitting at new record highs in various Australian markets. However, the tight rental market and high rents may drive more first-home buyer activity.
The most affordable suburbs for First-Home Buyers
Victoria
Thomastown
Located in Melbourne’s northern region, Thomastown offers affordability and family-focused amenities such as parks, shops, schools, and sports clubs, making it an attractive option for homebuyers. With a median house price of $685,000, the suburbs main demographic averages around 30-34 year olds, positioned on a popular train line, Thomastown becomes a practical choice for those who find Reservoir’s property prices prohibitive.
Mickleham
North of Melbourne, Mickleham offers a mix of amenities for residents. While it is known for its semi-rural character, there are local shops, schools, and recreational facilities in the vicinity. The suburb provides a quieter lifestyle compared to the bustling city centre. With a median house price of $678,250, the main demographic 30-34 year olds, Mickleham has experienced growth and development in recent years, with a mix of residential and rural properties. The housing landscape includes various styles, from traditional homes to more modern constructions. Buyers may find diverse options based on preferences and budget.
Altona Meadows
Situated in south west Melbourne, Altona Meadows offers median house prices of $728,500, The suburb is well-connected by road, with major thoroughfares like the Princes Freeway providing easy access to Melbourne’s city centre and surrounding areas. With a main demographic 35-39 year olds, Altona Meadows offers a range of amenities for residents. The suburb has shopping centres, including Central Square Shopping Centre, providing retail, dining, and other services. Local parks and recreational areas contribute to the community’s lifestyle, the housing landscape in Altona Meadows includes a mix of residential properties, with options ranging from detached houses to townhouses.
Belmont
Located in the Geelong Greater Region, a younger demographic of 25-29 year olds, being in close proximity to Geelong, Belmont residents can benefit from the broader amenities and services available in the city, including cultural events, healthcare facilities, and educational institutions. With a median house price of $699,000, the suburb offers a range of amenities for residents and the housing landscape includes a mix of residential properties.
Queensland
Morayfield
Situated in Brisbane’s northern region, with a median house price of $625,000, the suburb is well-connected and offers a range of amenities for residents including shopping centres, such as Morayfield Shopping Centre, providing retail, dining, and other services. There are also local markets and community facilities contributing to the lifestyle of the area. With a younger demographic 20-29 year olds, the more reasonable house prices offer opportunities for younger adults to enter the property market earlier.
Petrie
Located in Brisbane’s north, Petrie is hailed for its family-friendly charm, convenience, and strategic location, just a 40-minute train journey from Brisbane. With Median house prices of $545,000, the main demographic of 45-54 year olds, the suburb is emphasised to be not only an excellent choice for first-time homebuyers, but also a place to establish roots as families expand. Compared to other areas in greater Brisbane, Petrie stands out for its affordability, further complemented by the allure of its picturesque parklands, making it an enticing prospect for families.
Darra
Located in Brisbane’s Greater Region, Darras median house sits at $670,000. The demographic sits around the 30-29 year old mark. The suburb offers a range of amenities for residents including shops, parks and recreational areas.
New South Wales
Armidale
Situated in Armidale Greater Region of New South Wales, the suburb is recognised as one of Australia’s most sophisticated regional cities. With a median house price of $497,500, and a main demographic of 15-24 year olds, it’s a great choice for the younger population, looking to crack into the market early. Armidale is said to surpass all capital cities in Australia when it comes to job opportunities within the education sector. The city provides a contemporary lifestyle within an enchanting rural backdrop, offering popular recreational activities and a delightful array of dining options. In essence, it’s a truly picturesque rural setting.
Western Australia
Armadale
Located in the south-ast Perth region, Armadale’s median house price is $390,000, which has seen a 23% growth in the past 12 months. Not just an affordable option for buyers, but a wise investment choice. Mostly habited by 20-29 year olds, Armdale provides you a mix of housing options, including detached houses, townhouses, and apartments, perfect for singles, couples and growing families.
South Australia
Morphett Vale
Located in Adelaide’s greater region, Morphett Vale median house sits at $559,500 with a main demographic of 25-34 year olds. This South Australian suburb is highly known for its McLaren Vale wine regions, famous for its vineyards and wineries, producing high-quality wines. Additionally, the suburb is home to the Southern Suburbs Rugby Club, contributing to the local sports community.
Even if you’re not deposit ready, it’s always a good time to speak to a broker.
Embarking on the journey towards homeownership may seem like a distant dream, especially if you’re not deposit-ready. However, remember that every dream begins with a conversation. Speaking to a mortgage broker could be the pivotal step that transforms your aspirations into a tangible plan. Our dedicated experts are here to guide you through the process, offering valuable insights and tailored advice. Because in the realm of real estate, timing isn’t always about being deposit-ready; it’s about being ready to take that first crucial step.
Start the conversation today and let’s turn your homeownership dreams into reality, one thoughtful discussion at a time. Find out more here.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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