Want affordable housing? Head to Minto or Frankston North

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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.

Lender

Fixed
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No ongoing feesFree redraw facility
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

    Fixed
    More details
    NO UPFRONT OR ONGOING FEES
    NO UPFRONT OR ONGOING FEES

    Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

      Fixed
      More details

      Fixed Rate Home Loan (Principal and Interest) 3 Years

        Fixed
        More details

        Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.

          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. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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