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Are Stalling Property Prices a Boon for First Home Buyers?

As the nation’s capital city property prices continue to stall, softer market conditions might present first home buyers the opportunity to take that first step on to the property ladder.
A new First Home Buyers report, released by Domain, reveals the locations offering the lowest entry prices in capital cities across the country.

Are Stalling Property Prices a Boon for First Home Buyers

Entry level prices for houses: Domain
Sydney
Notoriously pricey Sydney may finally offer potential home buyers relief due to its cooling property market.
Strong investor demand has traditionally been a key driver of the Sydney and Melbourne residential markets, but thanks to tightening credit conditions and regulatory changes this demand has significantly dropped off.
Domain’s data scientist Dr Nicola Powell says securing your first home has also been improved by government policies.
“From July 2017 to April 2018 almost 23,000 first home loans were financed in NSW, jumping 76 per cent from the year prior,” she said.
Powell suggests areas such as the Central Coast’s Wyong as a viable first home buyer suburb due to its entry price at $483,000, and Campbelltown which sits 59 kilometres from Sydney’s CBD at $571,000.
“Those looking for something closer to the city centre can consider units in the area of Canterbury, approximately 13 kilometres from the Sydney CBD, with an entry price at $475,000 and a time to save of 4.6 years.”
Are Stalling Property Prices a Boon for First Home Buyers
Melbourne
Homebuyers looking to purchase quickly, Powell suggests areas such as Melton with the entry level price is $424, 000, or Wyndham which sits 36-kilometres from Melbourne’s CBD with its lower entry price of $490,000.
“For house hunters looking to be closer to the CBD, areas like Maribyrnong, approximately nine kilometres from Melbourne’s CBD, are a strong option with unit entry prices at $360,000 and a time to save of 3.7 years.”
Are Stalling Property Prices a Boon for First Home Buyers
Brisbane
Figures show first home buyers have increased in Queensland. The state is home to the most generous First Home Owners’ Grant at $20,000, introduced in 2016 but soon to be reduced to $15,000, available for homes priced under $750,000.
Domain figures show the average time to save a 20 per cent deposit in the greater Brisbane region is 4.17 years, with the lower entry housing prices at $327,000 in Ipswich, $352,000 in Logan and $385,000 for Moreton Bay.
Greater Adelaide and Greater Perth come out on top with some of the lowest entry prices and quickest paths to purchase for houses, nationally. For the unit market, Greater Adelaide, Greater Perth and Greater Hobart offer areas with the lowest entry point and the shortest time for first home buyers to save a deposit.
Are Stalling Property Prices a Boon for First Home Buyers

Source: theurbandeveloper.com

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Ipswich

Are these Australia’s cheapest blocks of land?

Are these Australia’s cheapest blocks of land

Just when we thought we had found the cheapest – a patch of dirt for $4.94 a square metre near the Queensland and NT border – we found another one.

And this “dirt cheap” vacant block is on the market for $2.08 a square metre – less than a 2L bottle of milk!

The fully fenced rural block of land has town water available and “power close by” but is only suitable for horses or recreation, hence the price.

Are these Australia’s cheapest blocks of land 1

It is listed with LJ Hooker Gayndah.

In Camooweal, yes that one near the border, a “drovers dream” is listed at 54 Cronin Street for $10,000.

With 2024sq m of vacant land that works out to be $4.94 a square metre — less than a beer at the local pub or a foot-long sub on discount day.

Are these Australia’s cheapest blocks of land 2

To help you wrap your head around that, that block of land would cost you over $1 million in Ipswich.

A recent report by property services group Oliver Hume found that Ipswich had the best value dirt in southeast Queensland, with land averaging $507 a square metre.

That is nearly half the price of vacant land in Brisbane, where buyers can expect to pay an average of $970 a square metre, so that block of land in Camooweal would set you back almost $2 million in the big smoke.

Bronwyn Finch of Jays Real Estate Mount Isa is marketing the Camooweal vacant block, which is located off the Barkly Highway.

Are these Australia’s cheapest blocks of land 3

Camooweal had a population of 208 at the time of the 2016 Census, with the average resident aged 36.

“It is walking distance to the local shop and garage, and you can wave at the tourists as they go past,” Ms Finch said.

“I sold another block about a year back, same deal for about $8000.”

Ms Finch said the cheap blocks were usually purchased by retirees looking for a spot to park their van between trips.

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She noted it would be a tough ask to get a car park in Brisbane for the same price.

“It is quite close to the Gregory River, which is beautiful, and Adels Grove, our premiere tourist attraction out here, is about an hour away.

“That’s close for us. That’s a daily commute in the city.”

Are these Australia’s cheapest blocks of land 5

Meanwhile in Mungallala, a tiny outpost on the Warrego Highway west of Mitchell, is a 1012sq m vacant lot of land that is on the market for $6000, or the nearest offer.

That’s $5.92 a square metre – less than a cup of coffee in Ascot.

It is listed with Ray White Charleville agent Glenda Fill.

“There has been a new house built in the town in the last two years,” she said.

“It is very small town off the Warrego Highway and had a population of 136 in 2016.

“It is an hour and a quarter from here (Charleville) so it’s a bit closer to the coast than we are.”

And in Westwood, which is about half an hour from Rockhampton, the beef capital of Queensland, is an 1800sq m block for $9000.

There is also another 1174sq m lot for $8000, and the 962sq m lot, which was listed for $6000, has sold.

Are these Australia’s cheapest blocks of land 6

“Blocks are not serviced and would suit ‘off grid’ living,” the listing says.

“There is no town water in Westwood – households rely on tank or underground (bore) water.

“No town sewerage (septic or bio), Westwood has electricity – no current supply to this estate.”

Marketing agent John Neumann of Discover Real Estate said “it’s a bargain” with a “rural outlook”.

“There is a rail line nearby, a mining one,” he said. “I think there is a pub, a post office and a police officer there.

“It is only about 50km from Rockhamption and it is on the western highway to the mining belt.”

Mr Neumann said he had already had some interest in the lots, mostly from grey nomads looking for a base and people keen to “go off-grid”.

He said he had even had inquiries from uni students looking to get a leg – or toe – on the property ladder.

Westwood had a population of 174 during the 2016 census.

It was the first new town proclaimed in the Queensland Government Gazette, after the state became a separate colony back in 1859.

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Source: www.qt.com.au

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Brisbane

‘The margin will never be this close again’: Brisbane’s waterfront secret where property is still affordable

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

Think “Brisbane waterfront” and Moreton Bay darlings Wynnum and Manly quickly spring to mind.

But only 30 kilometres northeast, on the other side of the airport and a similar distance to the CBD, another bay-front suburb, Sandgate, appears.

The photogenic village topped Domain’s best performing Brisbane suburb list in 2018 with 18.8 per cent median house price growth.

Despite this overall rise in housing value, data-savvy local agent Jacqui McKeering makes the case that Sandgate’s waterfront properties are still undervalued compared to southside bay designer homes.

Ms McKeering, of Jim McKeering Real Estate, says Sandgate waterfront still remains great value because family groups have to buy further back to get more features.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 1

“When the price-to-rateable-land-value gap narrows, you are getting a bit of a bargain,” she says.

“A simple calculation to illustrate this point shows the market value of Sandgate waterfront properties not that much greater than the rateable land value; on average 32 per cent greater.

“In fact one waterfront property sale, back in 2017, sold for 15 per cent less than the rateable land value, yet one block back and without bay view properties have a greater gap of 42 per cent.

“One particular [non-waterfront] property sold as high as 66 per cent greater than the rateable land value.

“The outtake here is there is plenty of money to be made on Sandgate waterfront properties.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 2

“I do believe the margin between waterfront properties and the neighbouring streets will never be this close again.”

Flinders Parade, which runs along the foreshore of Sandgate and into Brighton, plus Eagle Crescent and Shorncliffe Parade, are the waterfront property strips in focus.

Ms McKeering says a lot of people have been buying these older houses and renovating and that at the moment there is some choice in “real cheapies” from about $900,000 to about $1.35 million.

“I know someone who bought for $1.4 million in 2017 with a $1.8 million renovation budget,” she says.

“When you see that sort of money coming into an area, it tells me people are seeing long-term capital value in this area.”

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

Fellow Sandgate agent Tamara Wecker of RE/MAX agrees suburb 4017’s waterfront properties are priced and selling considerably under their comparable Brisbane market values.

“When compared to Wynnum and Manly,” Ms Wecker says, “absolutely; I mean you can live in the Taj Mahal in Sandgate for about $1.5 million.”

She is seeing buyer migration from Sydney and “a little bit from Perth” because of affordability, and thinks Sandgate’s strict rules, which prohibit multi-unit developments on its waterfront, is a further drawcard.

“People tend to think of Wynnum and Manly but here you can have a premium home and lifestyle only 30 minutes from the city,” Ms Wecker says.

“To be honest, it has been a bit of a secret because we are off the highway so you have to have a reason to come here, but that is changing in the past 18 months.

“We are getting more inquiries from people, even from Brisbane, who just did not know about us.”

Mark Crew has been selling Sandgate housing since 1990 and thinks people have woken up to how great a suburb it is in the past 18 months.

The Professionals’ agent has reported strong interest from Sydney buyers “looking for a better family lifestyle”.

He estimates 25 to 30 per cent of Sandgate buyers this year have come from the neighbouring suburbs of Shorncliffe, Deagon and Brighton; people who want to upgrade but stay in “the village”.

“It is 31 minutes to the CBD and you can be walking on the waterfront with your kids after work and we’ve got excellent schools too,” Mr Crew says.

Regarding Sandgate’s waterfront property market and its value, he says three factors should be considered.

“There are few waterfront properties for sale, land is scarce and over the past 20 years there has been a lot of change to the houses themselves, a lot of renovation and/or raising older three-bedroom cottages and transforming them into often substantial five-bedroom luxury houses,” he says.

“So these houses on their waterfront blocks are, quite rightly, going to fetch more in sale prices when they do one day return to the market; and that is showing.”

 

 

Source: www.domain.com.au

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Brisbane

Cheap Units In Brisbane Suburbs

Cheap Units In Brisbane Suburbs

Twelve suburbs in Brisbane have a median unit price of just under $400,000, according to Domain’s June House Price Report.

Ten out of these 12 suburbs are in the inner city, the report said.

Bowen Hills, Fortitude Valley, Albion, and Spring Hills are all within three kilometres of the Brisbane CBD. The median unit prices in these suburbs are below $400,000, the figures showed.

East Brisbane, Coorparoo, Clayfield, Nundah, Taringa, and Kedron also offer some of Brisbane’s cheapest unit values, according to the report.

Bowen Hills is the cheapest suburb to buy a unit, with prices falling 13.7% in the past 12 months, the figures showed.

Here are Brisbane’s cheapest suburbs to buy units by median price, according to Domain:

SuburbMedian priceYoY % growth5-year % growth
Bowen Hills$362,500-13.70%-18.80%
Runcorn$368,2504.80%-11.60%
Richlands$370,000-2.00%9.50%
Clayfield$375,0004.20%-2.10%
East Brisbane$378,000-7.40%-5.50%
Coorparoo$382,000-7.70%-2.30%
Nundah$385,000-6.70%-6.10%
Taringa$385,000-14.40%-4.90%
Kedron$387,000-3.30%6.30%
Fortitude Valley$392,000-6.80%-8.90%
Albion$397,500-10.00%-10.70%
Spring Hill$398,000-8.50%-2.70%

In Greater Brisbane, the median unit price fell 8.6% over the year to June, according to the report.

The capital city’s unit prices are “sitting at 2013 levels”—down from their peak in 2015, according to Domain research analyst Eliza Owen.

However, prices are expected to bottom out this year, with the end of the downturn in the unit segment in sight, Owen said.

“Unit listings are also moderating, which should reduce downward pressure on prices,” she said.

 

 

Source: www.yourinvestmentpropertymag.com.au

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