Major broker franchise Aussie has published a list of suburbs where young people can still get onto the property ladder with less than $100,000 deposit.
Aussie identified key areas such as Heidelberg West in Melbourne and Box Hill in Sydney as major market examples for houses, with Hawthorn and Lakemba also listed in the unit market.
According to Aussie’s CEO of distribution Brad Cramb, the report was compiled via conversations with their broker network and their own proprietary data.
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“From the point of view of a home buyer, it’s natural that they have a suburb that they have their heart set on,” he said.
“A lot of our feedback told us that. But at the same time, with the current market conditionsv, we thought we’d give them a tool that helps keep their mind open about where they can live that might pay off long-term. That was the feedback from brokers and customers.”
“When you’re entering a long-term investment, you have to carefully plan to suit your goals and where you want to be. All the data points that we can provide to assist that will be beneficials.”
“We’re in a unique and privileged position where we can pull that data together on behalf of our brokers and provide it to customers so they can make an informed decision. What Aussie can bring from its position as a brand is that we have that information close at hand.”
“We’re the largest retail mortgage brokerage in Australia, so we’ve got more points where customers can have a face-to-face discussion with the broker who knows the local area. You’re adding the hard data to the local knowledge. We think that’s a pretty good sweet spot.”
The main takeaway from the report was that home ownership was not out of the reach of young people, if they were willing to be flexible.
“The first thing is that flexibility is key,” said Cramb. “It’s a strong property market, interest rates are starting to move and it’s key to talk to a good advisor who has your best interests at heart. A broker is the best place to help answer the questions.”
“A broker is there to help along the path and make sure that your objectives are clear. They can give you the data to analyse. In capital cities, flexibility is key: home ownership can be seen as daunting, we know the facts around affordability and it can become out of reach, especially if you’re not flexible.”
“If you find flexibility, there are some attractive offers in adjoining suburbs or places with similar key things that people are looking for. Desired suburbs are sometimes out of reach financially, but flexibility can create more opportunity.”
“We do see a number of Australians compromising to get onto the ladder, including options like rentvesting. That’s not new, but it is getting steam up again and becoming more popular for a new generation of people looking to get in earlier.”
