Since leading the nation in property growth over the past few years, Sydney-siders can now boast an added advantage when it comes to the potential for further property purchases. In a surprising twist this is allegedly making the addition of more property more affordable for certain property owners.
A recent ABS report indicated that the average loan for a home purchaser in New South Wales increased by 4.5 percent to $474,647. When placed side by side with an average Sydney property price of now over $1.1 million it’s easy to see why some Sydney-siders might be feeling less of the pinch than they did previously.
When it comes to the rental market, rental payments increased to a larger percentage of household income than they did previously, as opposed to mortgage payments, which are holding steady with the historical average.
A leading global bank believes this trend is increasing the affordability of property to current home owners and providing potential for future market growth. Whether this is true or not, I believe investors and home owners need to be more informed than ever before. I’ll be outlining what I have found to be the safest and most reliable property types and locations to invest in over the next 12 months at my upcoming free property investor meetings.
An Australian Housing Update recently released by Deutsche Bank stated that 13.5 per cent of the average Australian household income is spent on rent, which is an increase from the historical average of 12.8 per cent.
What the bank also stated was that the percentage of household income dedicated to mortgage repayments stayed in line with the historical average of around 17 per cent.
With these figures the bank argues that housing affordability has actually improved, despite the recent surge in Sydney house prices. It states that this is largely due to interest costs, and “implies a continued move toward home ownership”.
Low mortgage stress, low interest rates and higher levels of equity provides an opportunity for savvy investors to take advantage of the RIGHT type of investments. To learn which property types and locations will provide the best chance of investing success, claim your free seat at my next live event near you by clicking here now.