New data point to Sydney’s far west and south west as having the most affordable property opportunities since August 2009, although - surprisingly - a few inner-city suburbs also make the affordability list.
Onthehouse Holdings Limited recently provided information on the group's Consumer Property Portal Affordability Indicator that points to increased affordability in the NSW capital. The indicator uses the proportion of the average household’s income required to make repayments on properties in their suburb.
The suburbs of Blair Athol (houses), Minto (units) and Leumeah (units) were listed as “most affordable”, seeing households spending from 29.65 to 28.07 per cent of their after-tax income on their home loans between them.
Across Sydney, property owners pay off their mortgages at a median rate of 45.36 per cent for houses and 32.71 per cent for units.
Michael Fredericks, founder and CEO of Onthehouse Holdings, said, “The lowering of the cash rate to 2.75 per cent by the RBA [Reserve Bank] and the relatively static levels of property prices are helping homeowners and increasing affordability for those wanting to get into the market. In fact, our data indicates affordability in Sydney is at its most favourable level in four years.”
Paddington, Alexandria and Mosman are the most affordable inner-city suburbs, with homeowners spending 29.65 per cent, 34.14 per cent and 35.05 per cent respectively of their after-tax income on home loans. Newtown and St Leonards also made the top five most affordable list.
“When looking at affordability, it is important to measure on a local basis, and our data is showing that certain suburbs represent far higher value for households than others. If you are looking to take advantage of higher affordability in the current market, remember that not all areas are equal and doing your homework is essential when deciding on what property to buy,” Mr Fredericks said.