Property prices in Australia have been on a rollercoaster ride during the last few years. From record highs to burst bubbles, the market has had its share of ups and downs. While both property prices and rental rates are notoriously expensive, some areas are cheaper than others. Finder's Property Index reveals the suburbs where you can bag yourself a bargain.
Finder's index depicts home values and the cost of rent in each suburb compared to the average in its state. For example, a home value index of 2 would indicate that a suburb has an average home value that is 2 times, or double, the average of the state.
If you are planning on purchasing your first home or looking for a new rental, it pays to do your research. Check out the map below to see how your prospective suburb stacks up.
Methodology
Finder's Property Index depicts the home value and rental cost differences between suburbs in NSW, Queensland and Victoria. Our home value index takes a weighted average of the median 3-, 6- and 12-month sale prices in each suburb and compares that to the weighted average price for the whole state. An index of 1.5 would indicate that a suburb has an average house value of 1.5 times the average for the state. Our rental index takes the median asking rent in the last 12 months in each suburb and compares that to the average for each state. An index of 1.5 would indicate that the rental costs in a suburb are 1.5 times the average in its state. Data was sourced from CoreLogic.
What next?
I'm planning to buy
If you've found the right suburb for you financially it's now time to start comparing other factors. You'll need to think of what matters to you and do your research. Is it in a good school catchment? Does it have a strong community feel? What is the unemployment rate like?
You will also need to start looking at your options for finance. An ideal home loan will have a low interest rate and will only require a low deposit. Interest rates are at an all-time low so make sure you compare your options before you sign on the dotted line.
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I'm planning to invest
Purchasing an investment property is a big decision and requires just as much research as buying your first home. You can get a good indication that a suburb is in high demand by jumping online and looking at the vacancy rates, recent property sales and auction clearance rates.
While interest rates for investor loans are typically higher than an owner-occupier mortgage, you can still score a good deal if you shop around.
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