Recent price falls have made Sydney more affordable. Picture: John Appleyard
Housing has become more affordable for buyers on middle- and lower-incomes, opening up access to suburbs that were previously out of reach.
Recent falls in prices, spurred on by the economic fallout from the COVID-19 health crisis, has meant those on annual incomes of less than $80,000 can buy in suburbs where the average houses were only affordable for households earning more than $100,000 back in March.
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An analysis of mortgage and price data by Finder.com.au found that southwest suburbs Elderslie, Spring Farm and Hebersham had seen significant improvements in affordability, thanks to cheaper prices and a fall in home loan rates.
Buying a house in Manly won’t come cheap. Picture: John Appleyard
Buyers in these suburbs only needed to earn around $70,000 to afford monthly repayments if they had a 20 per cent deposit and the lowest rate on the market, which sits around 1.95 per cent.
“The door is now open for lower- and middle-income buyers,” Finder.com.au insights manager Graham Cooke said.
“We are seeing the first sub-2 per cent rates appear in the market, with one 1.95 per cent product available nationally, and many others in the same ballpark.”
There were similar changes on the Central Coast, with suburbs like Chittaway Bay, Bateau Bay and Hamlyn Terrace.
Western suburbs South Penrith, Marsden Park and Emu Plains were also in the same boat.
Sydney’s cheapest markets for a house, Austral and Wilmot, required a minimum income of $43,000 a year.
An income of $80,000 is required to buy in Liverpool, $60,000 in Campbelltown and $76,000 in Fairfield, based off an interest rate of 1.95 per cent
In Castle Hill that number jumps up to $163,000, while Kellyville residents require an income of 128,000 to secure a house.
You would need an income of around $550,000 to buy in Vaucluse. Picture: John Appleyard
For units, Berkeley Vale on the Central Coast is the cheapest market, with a required minimum salary of about $36,000.
To buy a unit in inner west hot spot Leichhardt, a salary of just over $100,000 is required, while the figure drops to $72,000 in Newtown.
In comparison, to buy a house in a premium Sydney area like Vaucluse, you will need a salary of $554,000.
In Bellevue Hill that number rises to $663,000.
To buy a house in Manly you will need an income of just over $300,000, while in Cronulla it is around $230,000.
The post The Sydney suburbs where you can buy based on your salary appeared first on realestate.com.au.