Want affordable housing? Head to Minto or Frankston North

author-avatar By on December 17, 2020
Want affordable housing? Head to Minto or Frankston North

Property analytics group Archistar has released a report into the most affordable suburbs, featuring Minto in Sydney and Frankston North in Melbourne.

Former NRL player Jarryd Hayne is from Minto, and there have been two serial killers who struck in Frankston, so home buyers will be in with some pretty good company.

Archistar's 'First Home Buyer Affordability Index' report measures home loan repayments as a proportion of average weekly earnings.

The overall index has fallen to just 72.57 (lower index equals more affordable), the lowest ever score since the index was pegged at 100 in 2007. 

However, to find affordable suburbs in the capital cities, you're going to have to be a bit creative with your locations, with Minto and Frankston being just some of the colourful suburbs, claiming median house prices of $662,500 and $440,000 respectively.

Buying a home or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner occupiers.

Sydney

In Sydney, home buyers searching for affordability are looking in suburbs including Bradbury ($595,000), and Campbelltown ($655,000), as well as Minto.

For units, home buyers will see suburbs including Lakemba ($369,999), and Blacktown ($430,000). 

This is less than half the price of the median home value of more than $1.1 million.

Melbourne

In Melbourne, it's a similar story - Melton ($419,000) for houses, and Frankston ($367,500) for units. 

Other affordable housing suburbs include Melton South ($467,514, and Meadow Heights ($475,000).

These prices sit at about half the capital city median of $847,965.

Brisbane

For Brisbane, some of the most affordable suburbs for houses arguably aren't even in Brisbane - Lowood ($265,000), Laidley ($269,000) and East Ipswich ($279,000).

For units, Beenleigh was most affordable, coming in at $235,000.

Admittedly, some of Brisbane's cheapest units are in inner-ring suburbs, including Annerley ($319,000), and Moorooka ($329,500), though this is only slightly below the city-wide unit median of around $348,000.

Adelaide

Adelaide is also spoilt for choice, including Salisbury North ($267,000) on the list of most affordable houses.

One of Australia's worst serial killers, John Bunting (Snowtown), coordinated his murders from his Salisbury North home.

Perth

Perth remained relatively affordable compared to other capitals, with a median house price of $548,308.

Orelia came in at $240,000, Medina at $262,000, and Armadale at $265,000.

Will this 'affordability' last forever?

Overall, however, all states reported falls in the index in September: Victoria led with a 6.5% fall. 

NSW remains the least affordable state, with its index trending 9.5% higher than the national benchmark. 

This is generally supported by CoreLogic data that indicates the best-performing suburbs in 2020 were leafy, blue ribbon ones in Sydney, such as Vaucluse, with a median home price of more than $5.3 million.

See Also: Is Australia in a Housing Bubble?

Further, Archistar's chief economist Dr Andrew Wilson said improvements in affordability could be short-lived.

"Lower prices, lower interest rates and higher incomes have all acted to improve affordability to record levels for Australian first home buyers over the September quarter," he said.

"However, with rates set to remain steady for years together with ongoing weak incomes growth and higher house prices, the recent sharp improvements in affordability are likely to be short-lived.”


Photo by Cindy Tang on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Latest Articles

author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A