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How can a person on the average salary afford a house in Sydney?
Honest answer. No. From what I have heard most Sydney homes are now well out of reach of the average person on the average salary. An Australian was telling me it is now around $800 AUD per week to rent a studio apartment in or close to the centre...
As a traveler, you may have been enchanted by the beauty of Sydney and might have been contemplating settling down in this vibrant city. However, the skyrocketing property prices in Sydney can make it seem impossible for a person on the average salary to afford a house.
But is it really impossible? In this article, we will explore some tips and tricks that can help you achieve your dream of owning a house in Sydney.
The Current Scenario
Sydney is known for its picturesque landscapes, iconic landmarks, and a booming economy. However, the city’s property market has seen a significant surge in prices over the past few years, making it challenging for an average person to afford a house. According to recent data, the median house price in Sydney is around $1.1 million AUD, and the median unit price is around $750,000 AUD.
Saving for a Deposit
Saving for a deposit is the first step towards buying a house in Sydney. The deposit amount can range from 5% to 20% of the property’s value, depending on the lender’s requirements. Saving for a deposit can be challenging, but it is not impossible. Here are some tips that can help you save for a deposit:
- Set a budget and stick to it
- Reduce your expenses
- Increase your income
- Open a high-interest savings account
- Consider government schemes that help first-home buyers
Government Schemes
The Australian government offers several schemes that can help first-home buyers enter the property market. Some of the popular schemes include:
First Home Loan Deposit Scheme: This scheme allows first-home buyers to purchase a house with a deposit as low as 5% without paying for lenders’ mortgage insurance.
First Home Owner Grant: This grant provides financial assistance to first-home buyers to help them purchase a new home.
Stamp Duty Concessions: First-home buyers may be eligible for stamp duty concessions, which can significantly reduce the cost of purchasing a property.
See Related: What are the cheapest areas to live in Sydney’s Eastern Suburbs?
Consider Alternative Locations
Sydney’s property prices can vary significantly depending on the location. While properties in the city center can be expensive, properties in the suburbs can be reasonably priced. Check on other locations.
Related Resources:
- Which Sydney suburbs offer the best balance in terms of reasonable rent price, low crime, being pleasant and within 30 minutes commute to the centre?
- What are the cheapest areas to live in Sydney’s Eastern Suburbs?
- What is your best advice for finding short term apartment rental in Sydney Australia?
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