December 9, 2010
When it comes to buying property in Australia, just how expensive is it compared to the rest of the world?
Out of 90 cities worldwide, Sydney was 19 on the list of the world’s most expensive cities to buy property per square metre according to Global Property Guide. The most expensive is Monaco at US$48,145 per square metre ($50,126), while Australia is US$6960 ($7246).
Average house price in comparison
According to Australian Property Monitors, the national average house price has increased by more than 11 percent since September 2009, from $499,750 to $557,095 in September 2010.
Out of the eight states and territories, Sydney is the most expensive suburb to purchase property, with an average of $634,346, while Hobart is the cheapest at $315,024.
Melbourne experienced the largest increase with an average growth of 21 percent in September year-on-year to $572,377.
The Australian Bureau of Statistics (ABS) showed that out of the eight states and territories, NSW recorded the largest average home loan size of $311,400 in September, while Tasmania had the lowest of $188,200. The national average was $269,600.
How to purchase a home in Australia
If you are considering purchasing property in this beautiful country of ours, your dream can be achievable with the right planning and some time, even if you have a budget for Tanzania. Here are some tips to help you reach your goal sooner:
- Research: Determine what areas you can afford to buy a home according to their advertised price and what price they are selling for. You can do this online through a range of websites such as RealEstate.com.au and Domain.com.au.
- Save: Once you have a price in mind, work out how much you should save for a deposit for a loan. It is a good idea to save at least 10 percent of the purchase price. For instance, for a property valued at $400,000 you will need to save $40,000 to cover a 5 percent deposit and upfront fees.
- Budget: To save for a deposit, you will need to buckle down and save hard. Set yourself a budget that shows all of your expenses and incomings and see where you can cut back and put money aside to reach your goal.
- Compare: When you are ready to shop around for a mortgage, look for one offering a lower interest rate and fees. Compare homes loans online to see what is on offer.