Suburbs giving great bang for buck

LOW interest rates, government incentives and falling prices in some suburbs have created the perfect opportunity for would-be buyers to get a foot on the property ladder.

New data shows buyers could get into some greater Hobart suburbs with a salary of less than $30,000 a year, while renters could save hundreds of dollars a month if they bought a property instead of paying off someone else’s mortgage.

But finding a property to buy in some suburbs could prove tricky, with some commanding top dollar due to a lack of listings and middle-ofthe-road properties being snapped up at lightning speed.

The Finder Suburb Price Change Study (regional data) shows residents in Battery Point, one of Hobart’s most exclusive suburbs, require the biggest annual salary to pay off their mortgage, a whopping $195,868 a year at the lowest interest rate of 1.95 per cent.

That’s almost twice the amount needed to fund a mortgage at Tolmans Hill, where $99,917 is required.

Sandy Bay locals also need a hefty pay cheque — $97,273 a year, according to Finder.

On the flip side, lower and middle-income earners are now in a better position to get on to the property ladder thanks to lower interest rates.

In the greater Hobart region, the most affordable area is Gagebrook where buyers need a salary of just $25,111 a year to pay off a mortgage.

Herdsmans Cove, Bridgewater, Clarendon Vale and New Norfolk also offer an affordable chance to grab your own home, with the required salary under $30,000 a year, according to Finder.

Closer to Hobart, the Glenorchy

council region offers the most affordable properties, with Chigwell requiring a salary of $35,156 to finance an average mortgage.

The Hobart suburbs requiring the lowest salaries are Fern Tree ($70,840), North Hobart ($71,105), South Hobart ($71,501), New Town ($71,898) and Mount Nelson ($75,704).

Finder.com.au insights manager Graham Cooke said many suburbs once out of reach for lower-income and middle-income homebuyers had become affordable again.

He said rates that would have been unthinkable only a few years ago were now on the table for buyers.

“The door is open for lower and middle-income buyers — with the combination of lower rates and cheaper prices, now is the time to be looking,” Mr Cooke said.

“We are seeing the first sub-2 per cent rates appear in the market, with one 1.95 per cent product available nationally, and many others in the same ballpark. The average variable rate across the big four banks is around 4 per cent, this shows how much value there is in the market.”

Home seekers — particularly first homebuyers — were in the best position to capitalise on the low-rate environment and government support such as the stamp duty incentives and new home-builder grants, Mr Cooke said.

Realestate.com.au chief economist Nerida Conisbee said buyer inquiry levels were up about 70 per cent nationally since March.

In New Norfolk, a two-bedroom house on a 778 sqm block at 6 Sadri Court was under contract just three days after being listed for $330,000.

LJ Hooker Glenorchy agent Nick Emery said houses in that price range moved quickly, typically within a week.

“For them (the buyers), it was cheaper to buy than to rent and they could get more bang for their buck in New Norfolk,” he said.