For immediate release
Information verified correct on December 9th, 2016
Australia’s most affordable suburbs to live in
- Most affordable suburbs in Australia based on income remaining after mortgage repayments
- Seven WA suburbs make the top 10 list for most affordable suburbs out of all capital cities
- St Andrews is most affordable suburb out of all regional suburbs in Australia
- Borrowers urged to consider affordability when shopping for a home.
October 22, 2016, Sydney, Australia – One of Australia’s biggest comparison websites finder.com.au has listed the most affordable suburbs across Australian capital cities and regional areas, urging borrowers to check their affordability when shopping for a home.
The research compared 4,675 Australian suburbs by their affordability of income remaining after mortgage repayments, based on median house prices from onthehouse.com.au and average incomes of households living in each suburb, using Australian Tax Office income data. (Please see methodology at the end for more details).
Out of capital city suburbs, Western Australia holds seven of the top 10 most affordable suburbs, with Brentwood in the top spot for the highest average annual net income remaining after mortgage repayments of $75,398.
The only other states to make the top 10 for most affordable capital city suburbs were South Australia with Vale Park, and Queensland’s Kenmore and Chapel Hill all making the cut.
Across regional Australia, the suburb with the highest remaining income after mortgage repayments was St. Andrews, in Victoria. This area had an average household income after mortgage repayments of $128,196. Interestingly, it also had the highest median house value of the top 10 regional suburbs, sitting at $702,000.
Moranbah in QLD was the second most affordable suburb in Australia when it comes to home ownership, with the average homeowner having $90,162 left to play with after repayments. Interestingly, the median house value was just $273,000 – less than half that of St. Andrews.
Dysart, QLD, scraped into the top 10, with homeowners looking at an average of $82,584 left after their mortgage repayments per year. The median house value in Dysart sat at $267,000.
Michelle Hutchison, Money Expert at finder.com.au, says Australians need to factor in the ongoing costs of buying a home, not just the house price.
“It was interesting to see a real mix of suburbs in these lists, where some suburbs were much more expensive in terms of median house prices while others were cheaper. What this shows is that in some suburbs Australians are living much more affordable lives than others, regardless of the home values.
“The main finding was that it doesn’t matter the cost of housing in an area, what matters is how much it costs you to be able to afford living there. So borrowers need to do their research and find the lowest cost home loan, use an online calculator to work out the costs involved and how much money left over they will have after paying mortgage repayments.”
State by State
New South Wales
- Scotland Island was the most affordable suburb in Sydney, with an average income remaining after mortgage repayments of $60,869 and a median house value of $780,000 for this area.
- Normanhurst came in at second position for the capital city, despite having a median house value $358,500 higher than Scotland Island. The average income after repayments for this area was $46,379.
- Out of regional NSW suburbs, Singleton and Singleton heights came in at first position, with a median house value of $334,750 and a remaining income after repayments of $59,147.
- Albert Park was the most affordable suburb in Melbourne, with the average household having $57,028 once mortgage repayments were deducted.
- Somerton hit second position for Melbourne’s most affordable suburbs, with an average of $53,096 left after repayments. This area had a median house value of $545,000, which is just over a third that of Albert Park’s.
- St Andrews, with its median house value of $702,000 and income remaining of $128,196, sits at the most affordable regional area in Victoria and also scored the top spot across regional Australia.
- Kenmore is the most affordable for homeowners in Brisbane, with residents taking home $69,272 on average after mortgage repayments on homes valued at a median value of $618,500.
- Cedar Creek has the most pricey property of suburbs in Brisbane’s top 10, with a median house value of $1.37 million and a take-home pay of $61,374 per household.
- Moranbah was the most affordable regional area to live in Queensland based on after-mortgage income with residents taking home $90,162 on average.
- Brentwood had the highest income remaining of all Perth suburbs, with a cool $75,398 remaining after mortgage repayments. The median house value of this area was $827,500.
- Interestingly, in second place Willagee had a median house value of $596,500, which is over $200,000 less than the most affordable suburb in Perth. The income remaining after repayments for this area sat at $70,191.
- The best suburb to live regional WA is Dampier where households take home $88,027 on average per year.
- Of the suburbs in Adelaide, Vale Park is the most affordable place to live for homeowners with an average income after mortgage repayments of $66,819.
- Collinswood took second place with median home values of $733,000 and $61,273 of income remaining after mortgage repayments.
- Roxby Downs is the most affordable place to live in regional SA when it comes to income remaining after paying a mortgage, with average households taking home $85,910 due to a high average net household income.
- Of all the metropolitan suburbs in the Northern Territory, Ludmilla represents the most affordable for working homeowners with households taking home $52,174 on average after mortgage repayments.
- Gray had the cheapest median house price in the top 10 with a median value of $468,000 and an average remaining income after mortgage repayments of $43,202 per household, making fifth place on the list.
- Dundee Beach is the most affordable regional suburb to live in NT when it comes to income remaining after mortgage repayments, with homeowners bringing in $47,607 on average after their mortgage was paid.
- South Hobart took first place for most affordable capital city suburb, with an average of $43,982 remaining after mortgage repayments and a median house value of $440,000.
- Despite the cheapest median house price in TAS capital city top 10 of $217,000, GoodWood came in at 10th place, with an average income after repayments of $37,643.
- Queenstown is the most affordable suburb in regional TAS to live for working homeowners. The average household takes home $58,218 annually after their mortgage is paid.
Australian Capital Territory
- Deakin is the best value area to live in the ACT when it comes to income left after paying a mortgage, with households taking home $62,110 after paying off a relatively large mortgage of over $1 million.
- Red Hill, Yarralumla and Griffith follow Deakin, which also shared a median house value of over the $1 million mark and with average household incomes of over $100,000, residents take home over $55,000 on average after mortgage repayments.
- Please note, ACT suburbs weren’t divided into regional and capital city areas.
To rank each suburb by highest average remaining income after mortgage, finder.com.au calculated average annual mortgage repayments based on:
- A home loan with a 20% deposit,
- The current average variable home loan rate of 5.1% based on the finder.com.au/home-loans database,
- And the median house value in each suburb supplied by onthehouse.com.au.
We calculated the average after-tax income per household by deducting appropriate tax from the average wage (total taxable income per postcode divided by number of taxpayers in each post code) from the Australian Tax Office. We then used a household estimate based on 1.5 income earners per household.
These figures were used to calculate remaining income after paying a mortgage for each suburb in Australia. Suburbs were ranked in descending order by this figure to find the most affordable suburbs for working homeowners.
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).