Although location plays a significant role in property prices, slight variations within a suburb can mean the difference between paying a premium or snagging a deal. Discover how to utilise a tool to uncover pockets of affordability in Townsville, Queensland, Brisbane, and the Gold Coast.
Every suburb boasts its own median house price, and platforms like realestate.com.au can offer insights into median values for specific postcodes.
However, the median figure merely represents the midpoint of a suburb's data set, with prices often fluctuating widely across different areas within the same suburb.
Fortunately, there's a convenient online tool available to help identify more cost-effective areas within the suburbs you're eyeing for purchase. You might be surprised by the discrepancies in prices.
For instance, in Beecroft, situated on Sydney's affluent north shore, the median house price stands at approximately $2.4 million. Yet, as revealed by Premium Finance Group Australia's price tool, certain sections of Beecroft command a median exceeding $2.8 million, while just a few streets away, the figure drops to around $2.2 million.
This significant $600,000 difference can be attributed to various factors.
The more affordable sections of the neighbourhood are situated adjacent to the M2 Hills Motorway.
A similar scenario unfolds in Melbourne's sought-after inner suburb of Fitzroy North.
Renowned for its charming terrace houses, Fitzroy North boasts a median house value of $1.6 million. However, residing near Edinburgh Gardens, the suburb's picturesque parkland, comes with a price tag closer to $3 million.
In Brisbane's Fortitude Valley, the James Street Market side of James Street commands a median house price of $3 million, whereas across Brunswick Street, the median house price drops to under $1.9 million.
These disparities in prices are commonplace.
According to Premium Finance Group Australia's analysis, homebuyers can typically save around $365,000 by opting for more affordable areas within a suburb.
However, in some neighbourhoods, this price differential widens significantly.
Take the Perth suburb of Subiaco, for example. Several pockets of homes boast median values surpassing $2 million, while properties surrounding Subiaco Oval are priced closer to $840,000.
Key considerations for budget buys By now, you've likely noticed a pattern.
Nearby amenities and features can significantly influence property values, either elevating or depressing them.
Proximity to the beach, scenic vistas, or local parks can drive prices upwards, whereas homes near a busy highway or industrial estate may offer more affordable options.
Additionally, factors like flood zones or upcoming changes to council zoning can impact property values, underscoring the importance of thorough research.
After all, while you can renovate a property, you can't alter its location.
Seizing opportunities
That being said, disparities in pricing within suburbs present opportunities for savings.
A mere street can separate an expensive property from its more affordable counterpart.
Opting for the cheaper neighbourhood allows you to enjoy the amenities of the pricier postcode without the hefty price tag.
Furthermore, keeping abreast of planned local developments can uncover potential transformations, turning today's overlooked areas into tomorrow's upscale enclaves.
Considering a purchase?
Contact us today to ascertain your borrowing power, helping you determine where you can afford to buy. To learn more, contact Premium Finance Group Australia, your trusted mortgage broker in Townsville, Queensland, Brisbane, and the Gold Coast, at 1800 413 635 or email us at finance@pfga.com.au
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
