First-time buyers head interstate

An increasing number of Australians are looking to cross state lines to purchase property, according to research from comparison site Finder.

According to Finder’s First Home Buyers Report 2021, which surveyed 1028 first home buyers, a fifth of prospective homeowners are searching for their first property in a different state to where they currently live. Viewed another way, that’s 2362 Australians a month are looking to buy property interstate.

“Some first home buyers are looking at real estate in other parts of the country where prices are more affordable, with many feeling the pressure to buy while interest rates are low,” says Sarah Megginson, home loans expert at Finder.

“The impact of Covid-19 has also caused a spike in demand for regional properties, as residents in Sydney and Melbourne consider swapping city living for more of a laidback lifestyle.”

House prices in the capital cities are going one way – up. According to CoreLogic, the median sale price for a house has reached $1,030,000 in Sydney, followed by $806,000 in Melbourne.

Rentvesting, where you invest in property in the place you can afford and rent in the place where you want to live, could be a good way to go for many of these buyers, says Megginson.

“If you’re still keen to buy sooner rather than later, purchasing interstate could be for you. Another option could be doing a joint venture with your parents or sibling; it can make buying a property more affordable and help you spread the risks,” she says.