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November 14th, 2018

First Home Buyers Moving Interstate for Housing Affordability

The high cost of housing in Australia has been the main focus of recent public debates. These debates have mostly focused on the inability of many first home buyers, who are young people in particular, to break into the property market. According to recent statistics from the Australian Bureau of Statistics, there has been a rapid increase of first home buyers hitting the Australian housing market seeing the number of first-home-buyer loans rising to a 5 year high.

Towards the beginning of this year, first home buyers had accounted for 18 percent of the home mortgage loans which is said to be the highest monthly share in 5 years. However, despite this sudden interest, many people have preferred renting in their preferred area and buying somewhere that is more affordable. This is a growing trend among the younger buyers. While there may seem to be several government first home owner incentives to help tackle affordability, high property prices in major states like Melbourne and Sydney still continue to make many potential first home buyers consider moving to another capital city to fulfill their dream of buying a home. According to the ME Head of Home Loans, Patrick Nolan, buyers are starting to consider moving to longer distance and alternative cities where property prices are more affordable. Al this are efforts to get away from the high value of homes in Sydney which is currently rising at a very high rate.

According to Domain Group chief economist, Dr Andrew Wilson, most of the major states like Sydney and Melbourne are a wasteland for the first-home buyers. He adds that most of those who leave Sydney or Melbourne in search of a home usually move towards the Northern suburbs since their median is almost half that of Sydney. On the outlook, the suburbs that offer good opportunities tend to be the northern ones including Albany Creek, Aspley, Chermside and Kedron. All the suburbs are more affordable in terms of property costs when compared to Sydney and Melbourne. Since Perth seems to be a tough market currently for the market sellers, you are most likely to have your way here. The property prices here are falling each and every day and currently they are at four-year-ago lows. While Hobart property market seems to be quite stronger than Perth, the median house price is still one-third of that of major states. In fact, even those areas that are considered as semi-prestige in Hobart are still more affordable.

A new strategy

While most first home buyers who are keen to settle in Sydney and Melbourne might have been seen news anticipating the fall of property prices and become hopeful, these hopes may now be fading are economists predict only minor changes. This is mainly because the prices in both cities are expected to drop between three to six per cent towards the end of the year. This percentage fall in property prices would see the two cities go back to their September 2016 property prices level.

With this news, regional living remains the only attractive option for those new to be homebuyers who are likely to make it work. With the property prices being very low in the regions, if you are able to resolve the issue of employment, you are set for some huge benefits of buying property in the regional area. While buying your first home may take a totally different approach from what you had previously expected, it is still achievable by all prospective first home buyers. Therefore, it is not worth giving up your dream of owning a home.

How can you move interstate cost effectively?

While the cost of buying a home may seem to be high, moving to your new home can be even more difficult, especially when you are crossing the state lines. However, no matter what the size of your move is, the secret to a stress free move is being organized and having a realistic budget. Using self-pack container removals is arguably the most flexible and cost-effective way to move interstate. This is a proven excellent way to successfully transfer your household properties to another state with minimal stress, hassle, and maximum savings. This type of home move involves the renting of a cargo container which is dropped in front of your yard for you to pack it by yourself and at your own convenient time. All you have to do is choose the best shipping container Removal Company, get a quote, and see how much you can save.