Aussie suburbs you can buy a house in for the cost of a Sydney deposit

If saving for the cost of a home deposit in Sydney is feeling impossible, new research from Domain is a timely reminder that more affordable options are out there – if you’re willing to look outside the Harbour city.

The median price of a house in Sydney ballooned to an eye-watering $1.6 million last quarter, according to Domain figures.

With most home loan lenders encouraging borrowers to save a 20% deposit, growing a nest egg of $320,000 is a tall order for most Aussies. Especially when that sum could allow you to purchase a home outright in areas across the country.

New research from Domain is highlighting suburbs across the county in which you could buy a house for the cost of a $320,000 deposit in Sydney.

While many Australians choose to live in capital cities for work, this research may be worthwhile for those considering a sea or tree change due to flexibility offered by work-from-home regulations.

It’s also a great reminder that your dollar may go further if you’re willing to look outside of your dream suburb – even in a capital city.

Where you can buy a home for the price of a Sydney house deposit (median house values)

New South Wales 

1. Forbes - $320,250
2. Tolland - $315,000
3. Mount Austin - $311,500
4. Inverell - $305,000
5. South Tamworth - $305,000
6. Cootamundra - $300,000

Queensland

1. Churchill - $320,000
2. One Mile - $320,000
3. Woodridge $315,000
4. Bundaberg East $319,000
5. Aitkenvale $306,000
6. Wulguru - $316,000

Western Australia

1. Midland - $310,000
2. Brookdale - $315,000
3. Greenfields - $310,000

South Australia

1. Evanston - $317,000
2. Sailsbury North - $310,000
3. Munno Para - $304,438
4. Mount Gambia - $295,000
5. Whyalla Jenkins - $300,000

Tasmania

1. Montello - $312,000
2. Acton - $275,000
3. Smithton - $282,500

Victoria

1. Ararat - $316,00
2. Red Cliffs - $315,000
3. Mildura - $310,000
4. Terang - $310,000

Source: Domain research for the Sydney Morning Herald.

There is not a single suburb in the Australian Capital Territory with a median house or unit price below $320,000. And while some properties have recently sold for under $320,000 in the Northern Territory, it also has no homes with current medians in this price range.

RateCity tips to help you purchase your first home

While first home buyers wait patiently for a predicted cash rate hike to help decrease property values, there are some tips worth keeping in mind in the lead up to buying.

• Consider bridesmaids suburbs – If the research from Domain can show us anything, it’s that sometimes it may be worth looking outside of our ideal suburb for a more affordable property price. Whether this means moving a suburb away from a train line or your favourite park, there may be more affordable options available that may help you get a foot on the property ladder.
  
  
• Government assistance – First home buyers may take advantage of several buyer schemes, grants, and concessions to help them boost their borrowing power. From the First Home Loan Deposit Scheme that allows you to gain mortgage approval with a 5% deposit, to stamp duty concessions and exemptions, there may be options available to make home buying more affordable to eligible buyers.
  
  
• Guarantor – If you’re a young Australian trying to buy in a major city like Sydney or Melbourne, you’d be hard pressed to find another buyer who hasn’t had help from mum and dad. A home loan guarantor may be able to bolster your mortgage application by agreeing to take responsibility for loan repayments should the buyer default. They may offer up security, such as equity in the family home, to support a homebuyer’s deposit, usually up to 20%.

Guarantor home loans

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