Capital city property markets can be notoriously difficult to enter if you’ve taken out your first home loan. However, there’s a reason why they are so lucrative and once your foot is on the ladder, you could find yourself with a property that keeps growing in value.

As with any purchase, you’ll need to make sure that you are making the right decision. This is where area-specific data comes into play. If you are seriously considering making your move into one of the nation’s capitals, here are some of the facts and figures you’ll need to think about.

1. Properties listed for sale

One of the first pieces of information you’re likely to come across during your property search is how many homes are currently on the market. This will have an impact on how quickly you find your ideal real estate, as well as how much competition there is.

SQM Research recently revealed that during July, the number of national listings increased 3.8 per cent from the previous month. Year-on-year, the rise registered at 4.2 per cent.

However, closer analysis shows that results are quite different across the various capitals. Darwin, for example, has seen its listings increase 34.8 per cent from a year ago, while Melbourne’s are down 10.3 per cent.

2. Know whether the price is right

Price is another factor you can’t afford to overlook, especially with many of the nation’s capitals being more expensive than others to purchase property in. Knowing how much you can borrow will help determine which price brackets you can afford to look at.

The March Residential Property Price Index from the Australian Bureau of Statistics pointed to varying results across the country. Sydney’s prices were up 13.1 per cent between the March quarters of 2014 and 2015, while Darwin and Perth were at the other end of the spectrum with declines of 0.4 and 0.3 per cent respectively.

3. Affordability in your chosen area

The price of the property you buy will also have an impact on the repayments made on your first home buyer loan. It’s essential that you can not only meet the required amounts, but also be able to live a comfortable lifestyle at the same time.

The latest Adelaide Bank/REIA Housing Affordability Report reveals that on average, 30.8 per cent of a family’s income is dedicated to loan repayments. New South Wales emerged as the most unaffordable state or territory, while the ACT was the least expensive.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.