For many, the ‘great Australian dream’ of owning your own
home is becoming exactly that… a dream. In the face of rising living costs and
a sharp increase in property prices over the last 12 months, many singles and
families are facing the prospect of a lifetime of renting.
home is becoming exactly that… a dream. In the face of rising living costs and
a sharp increase in property prices over the last 12 months, many singles and
families are facing the prospect of a lifetime of renting.
In mid-2015 the average price for a house in Sydney broke
the million dollar barrier reaching $1,000,616. What does that mean for buyers?
the million dollar barrier reaching $1,000,616. What does that mean for buyers?
Let’s do the maths based on this price…
Deposit required (20%) = $200,123
Stamp duty payable = $40,857
Monthly repayments (25 year loan at 5% interest) = $4,680
per month
per month
These figures are intimidating enough, then throw in the
cost of a car, a couple of kids as well as the annual family holiday and it
becomes well beyond consideration.
cost of a car, a couple of kids as well as the annual family holiday and it
becomes well beyond consideration.
So how exactly does the budding young purchaser of today
break in to the Sydney real estate market?
break in to the Sydney real estate market?
1.
Think Outside The Metropolitan Box
Think Outside The Metropolitan Box
There are many suburbs on the outskirts of
Sydney where it is still possible to secure a family home well under $1million.
Public transport to and from Sydney has improved and these suburbs can offer a
fantastic lifestyle at a very reasonable price eg, Wollongong region, Central
Coast and the Sydney western suburbs.
Sydney where it is still possible to secure a family home well under $1million.
Public transport to and from Sydney has improved and these suburbs can offer a
fantastic lifestyle at a very reasonable price eg, Wollongong region, Central
Coast and the Sydney western suburbs.
2.
Share
Share
It is always a risk purchasing a property
with a friend or family member however the increased financial capacity can
open new doors. The key to success is ensuring that all parties have the same
vision for the property and are agreed on the exit strategy.
with a friend or family member however the increased financial capacity can
open new doors. The key to success is ensuring that all parties have the same
vision for the property and are agreed on the exit strategy.
3.
Take the Flat Line
Take the Flat Line
Many homeowners are taking advantage of the
booming rental market and are converting areas of the home/garage etc in to
self-contained granny flats which can be rented out for impressive returns.
This can ease the burden of mortgage repayments considerably.
booming rental market and are converting areas of the home/garage etc in to
self-contained granny flats which can be rented out for impressive returns.
This can ease the burden of mortgage repayments considerably.
4.
Start Small
Start Small
Remember that your first home does not need
to be your forever home. It can be wise to forego the gourmet kitchen and 2nd
bathroom in the short term with the view to renovate the home or upgrade in a
few year’s time. Look for a property with good prospects for capital growth and
opportunity to add value to the existing structure. This will allow you to
maximise your profit when it comes time to sell and give you a greater deposit
for your next home.
to be your forever home. It can be wise to forego the gourmet kitchen and 2nd
bathroom in the short term with the view to renovate the home or upgrade in a
few year’s time. Look for a property with good prospects for capital growth and
opportunity to add value to the existing structure. This will allow you to
maximise your profit when it comes time to sell and give you a greater deposit
for your next home.
That
dream may seem more unachievable than ever, however for the patient and
financially savvy it is a dream well within their reach.
dream may seem more unachievable than ever, however for the patient and
financially savvy it is a dream well within their reach.
Thanks to Mattias Samuelsson
Ray White Helensburgh
0466 627 226
For further Real Estate advice contact the team at Ray White Helensburgh on 42947000
