The Sydney property market is notoriously difficult to enter, not least because of its strong prices and capital growth. Results of the August CoreLogic RP Data Home Value Index show the median dwelling price in the city stands at $773,000, riding 17.6 per cent over the past year.
However, some experts have started to predict a turnaround for the city’s fortunes. It could become more accessible to anyone with first home buyer loans, primarily due to the large number of properties being constructed in key locations.
Head of Real Estate Research at the University of New South Wales Business School, Nigel Stapledon, forecasts that the city’s supply pressures will soon start to ease off.
Speaking to the Sydney Morning Herald on September 21, he noted: “There is a tsunami of home supply coming.
“The market is going to be tested in accepting this sort of supply.”
This may help quell some of the concerns the general public has about the affordability of homes across the nation, as identified in a Slater and Gordon Conveyancing Works survey. Affordability was cited by 31 per cent of Queenslanders as a number one source of worry, followed by 29 per cent of those in New South Wales and 28 per cent of Victorians.
As a result, the group urged anyone approaching a mortgage broker to be realistic about how much they can borrow, as well as the likelihood of keeping up with loan repayments now and into the future.
Other sources of worry included getting housing finance approved, stamp duty and not being able to find a property. Hidden costs also featured on the list.
No matter which region a purchase is made in, it’s essential to be pragmatic about the amount of finance that can be secured. Slater and Gordon Conveyancing Works also indicated that buyers need to have a rainy day fund in place, just in case they encounter any difficulties.
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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.