In the current market, even with the lowest interest rates many of us have ever seen, affordability of homes for first home buyers is still exceedingly low.
Just recently Domain ran an article that stated that "the Sydney market is basically closed to first-home buyers". With the prices in the Sydney market seeming to increase month on month, first home buyers just cannot break in, especially as the average house price now costs 12 times the average salary (20 years ago average house prices were only four times the average salary). Many real estate experts, bloggers and news agencies are lamenting that with fewer properties available for sale and a growing list of desperate buyers, pressure on the market has seen house prices continue to rise.
So this begs the question: Why buy in Sydney?
Why don’t purchasers eager to get into the property market continue to rent where they like living, and buy an investment property in growth areas and build equity that way?
Well, they can.
According to Smart Property Investor there are Newcastle and Hunter suburbs in their Top 10 Fastest Growing and Highest Growth suburbs. Add to this statistics that Newcastle and the Central Coast have a combined average of >10% Capital growth in 2016 and that property specialists themselves are buying in the Hunter then you have the perfect location to buy.
When you add to it all the development, growth and industry expansion in Newcastle and the Hunter Valley, the answer to housing affordability is here.
If you are ready to invest, you'd best be quick. Stock is rapidly being sold (9 lots in Thornton were sold on the weekend, and now there is only one lot left in Fern Bay) so contact us to reserve a property for you today.
If you would like to invest but aren't quite ready, we can help refer you to professionals who can help you start your property investment journey.