Where to buy a house independently?,
Homebuyers without access to the bank of mum and dad face significant challenges when purchasing in inner Melbourne.
Even those earning above-average wages struggle to buy a freestanding house, according to CoreLogic’s Eliza Owen.
For high-earning couples, compromises are essential when looking to buy a detached house in the city.
Based on borrowing capacity and a 20 percent deposit, Melbourne’s affordable areas are typically located on the city’s outskirts.
The affordable house market lies about 28 kilometers from the CBD, with a few closer markets still accessible.
While some markets remain affordable within proximity, the majority of options are found further from the city center.
For a single buyer earning $125,000, only 52 suburbs are considered affordable, with areas like Broadmeadows and Jacana qualifying.
Couples with a combined income of $175,000 can afford homes in 194 suburbs, though most inner-city areas remain out of reach.
Suburbs like Kensington, Flemington, and Footscray are some of the closest affordable options for couples seeking a home.
A couple where both members earned above-average incomes had the most options, though many inner-city suburbs remained out of reach.
However, Windsor, Collingwood, and Brunswick were still affordable for these couples seeking a home in Melbourne.
Owen expressed concern that unaffordable housing is pushing individuals who would prefer living alone into relationships instead.
She noted, “This situation opens an interesting discussion around autonomy in housing and personal choice,” Owen added.
“Often, people are pressured into relationships simply to gain access to housing, which is not ideal,” she explained.
Ideally, individuals would choose to live with others, rather than feeling it is a necessity driven by affordability.
Canstar’s Sally Tindall highlighted how rising house prices were pushing buyers without generational wealth further away from the city center.
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“People are increasingly looking further afield, perhaps in suburbs they’ve never considered or even heard of before,” she said.
She added, “Property prices have shown a long-term trend of rising, and many are priced out of their family suburbs.”
When first-time buyers attempt to purchase, they find themselves unable to afford their original suburbs and must compromise.
Luke Rowland, an Axton Finance broker, stated that prospective buyers are willing to make compromises when choosing a location.
“If buyers are unsatisfied with what they can afford in one suburb, they’ll consider other options that meet their needs,” he said.
He observed that first-time buyers have returned with more confidence, exploring multiple suburbs rather than focusing on just one or two.
For single buyers with an above-average income, they can afford a unit in 160 suburbs, including many inner-city areas.
Couples with an average income are only excluded from two suburbs, while couples with higher incomes face no restrictions.
Despite affordability, apartments are often seen as less desirable due to a history of weak capital growth and quality issues.
George Alexander, an agent in Melbourne’s inner west, mentioned that fringe areas are the most affordable for budget-conscious buyers.
He stated, “Ardeer and Albion offer good value with freestanding houses available for $600,000 to $700,000-plus, though they are small suburbs.”
These lesser-known suburbs offer affordable homes, with houses in West Sunshine priced at around $650,000, according to Alexander.
Moreover, buying a house is more affordable than owning an apartment, as there are no body corporate fees in houses.
Alexander noted that apartments in these areas provide single buyers the opportunity to purchase a home on their own.
He explained, “I’m selling many one-bedroom apartments or villa units to younger women who are currently renting.”
These buyers are finding they can afford to own a home at the same cost as renting, he added.
For a single person or young couple, purchasing a one-bedroom flat in Footscray for $300,000 or $350,000 is possible.
Rowland explained that the high cost of housing means some buyers require an additional income to break into the market.
In this environment, many buyers are partnering with others to boost their borrowing capacity and enter the property market.
