- Low vacancy rates, falling prices and government assistance add up.
- Jacobs Creek in Queensland topped the list with a zero vacancy rate.
- Willow Vale in Queensland came in at second place.
Extremely tight vacancy rates are pushing up rents across Australia, however, for home buyers wanting to escape the “rent race” there are still a number of locations around the country where it’s affordable to buy.
Research from OpenLot.com.au found there were a number of affordable house and land markets in Australia’s smaller capital cities where renters have the budget to purchase a nearby house-and-land package.
Topping the list was Jacobs Creek in Queensland, which has a median rent of $780 and an incredibly tight vacancy rate that is officially at zero.
In Jacobs Creek, the average renter could afford an $858,000 property in a number of nearby locations including Hope Island, Pimpama, Coomera and Ormeau.
Willow Vale in Queensland comes in at second place, while Western Australia had a number of suburbs with affordable first-home buyer areas including Seville Grove, Brookdale and Champion Lakes.
The only suburb to make the list from NSW or Victoria was Newborough, highlighting just how low the rental yields are in Australia’s two most expensive housing markets.
The most cost-effective suburbs for renters looking to buy a house and land package across Australia were in Western Australia (7), Queensland (6), South Australia (6) and Victoria (1).
Get set to buy
OpenLot.com.au founder Qi Chen said the combination of low vacancy rates, falling property prices and government assistance for first home buyers means it is a good time for renters to look to buy.
Mr Chen said, “Life is hard for renters right now, given that vacancy rates are very low and rents are rising quickly in many parts of the country,
“So it’s natural that a lot of people want to leave the rental market and climb onto the property ladder instead.”
Mr Chen said higher interest rates are making things tougher, but that’s also seeing asking prices fall.
“One impediment for first home buyers is that interest rates are rising, which is reducing many people’s borrowing capacity”
“However, property prices are falling in many regions right now.
“That’s great if you’re a first home buyer, because it lowers your barriers to entry” he said.
Government assistance abounds
Mr Chen said another reason why now is a good time to be a first home buyer is because there’s plenty of government assistance around.
He said, “At the federal level, first home buyers can take advantage of the First Home Guarantee and Regional First Home Buyer Guarantee, which let people enter the market with a deposit of as little as five per cent,
“Also, various states are offering buyer grants and stamp duty concessions.”
