A seaside town and a desirable, inner-city suburb on a river has some of the lowest mortgage stress levels in Australia.
Australians looking to avoid the pain of rising interest rates don’t have to live far from the ocean, with a coastal city a two-hour drive, 180 kilometers northwest of Adelaide, and an upmarket part of Perth considered convenient locations. A mortgage service.
Real estate data group PropTrack has revealed the most affordable places for a working couple to buy a house or unit, if they both make the median income for the area.
The South Australian town of Fisherman’s Bay on Yorke Peninsula, overlooking Spencer Gulf, is so affordable that it’s possible to buy a three-bedroom house for under $60,000 and live close to the water.
PropTrac economist Angus Moore says regional areas offer more options for homebuyers.
‘There are still parts of Australia where mortgages are still quite affordable compared to suburban median incomes,’ he said.
‘They are mostly in regional areas, where prices are lower.’
A seaside town and a desirable, inner-city suburb on a river has some of the lowest mortgage stress in Australia (pictured are houses in Fisherman’s Bay that typically cost $60,000).
A three-bedroom ‘family shack’ near the beach sold for $52,250 in February.
Fisherman Bay’s median house price in the 5522 postcode was $60,000 in May, while $61,000 is the median, dual income – below the Australian median salary of $65,000 for an individual.
PropTrack calculates a monthly mortgage payment of $270 costs just 2.7 percent of income for buyers with a 20 percent mortgage deposit of $12,000.
For those looking to live close to the beach in a big city, an affordable median apartment in upmarket Mosman Park, west of Perth, costs $350,000 – a level below the $2 million mid-point for houses.
The Swan River suburb – which borders Cottesloe and is home to millionaires – has a median household income of $170,200 in the 6012 postcode.
A typical unit costs just 5.9 percent of income to pay a monthly mortgage payment of $1,660, with a 20 percent mortgage deposit of $70,000.
But it would still be affordable for someone with an average, full-time salary of $94,000.
‘Even in capital cities there are some pockets where mortgage costs are on the more affordable side relative to income,’ Mr Moore said.
Affordable median apartments in upmarket Mosman Park, west of Perth, from $350,000
These regions are being spared the mortgage squeeze that has affected much of Australia after the Reserve Bank this month raised interest rates for the 12th time since May 2022.
The easiest place to pay off a mortgage
House: Fisherman’s Bay, South Australia: Median price $60,000 and monthly mortgage payment $270
Unit: Mosman Park, Perth: Average price $350,000 and monthly mortgage payment $1,660
Source: PropTrack Based on a median house or unit price on a 30-year loan and 20 percent mortgage deposit
The major banks raised their standard variable rates by 0.25 percentage points last week for the RBA cash rate to rise 25 basis points in June to an 11-year high of 4.1 percent.
But two of Australia’s biggest lenders – the Commonwealth Bank and Westpac – sneakily raised their variable rates on Friday despite an RBA move, putting off new customers living in their homes.
Westpac has increased its variable rate by 15 basis points, taking its Flexi First Option home loan rate to 6.09 per cent for a borrower with a 20 per cent mortgage deposit.
The Commonwealth Bank raised its equivalent variable rate by 10 basis points, taking an asset package loan for new, owner-occupied customers to 6.44 per cent.
RateCity research director Sally Tyndall noted that major banks were no longer offering variable rates below six per cent, more than a year after mortgage rates started at ‘two’.
‘If you’re in the market for a home loan, take the time to look outside the big four to see what’s possible,’ he said.
‘A lower rate will help keep a lid on your new mortgage repayments, but also increase your borrowing power in an incredibly tough market.’
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