With the rising cost of living, saving for a first-home deposit has become increasingly challenging for young adults. While first-home buyers often benefit from stamp duty concessions and potentially a grant, other expenses like lender’s mortgage insurance (LMI) and additional buying costs still apply.
Antonia Mercolla of REIQ recently highlighted the hurdles faced by first-home buyers in Queensland, particularly the deposit. “In Queensland, a 20% home deposit for a first home now represents 1.64 times the average annual earnings,” she said. So how can young people purchase an affordable home today?
A Regional Home = a Smaller Deposit
There’s hope for those looking beyond the city. While buying a house in Brisbane now costs a median of $1.15 million, homes and units in Morayfield offer a more affordable alternative — and with it, a lower deposit requirement.
Land has gone up in this region too. Across the City of Moreton Bay LGA, the overall land median price is valued at $415,000. (As at March 2024).
In Morayfield, the median house price is $700,000, while the median unit price sits at $480,000 (November 2024). Purchasing a unit at the median price would require a deposit of $96,000 (if at 20%), allowing buyers to avoid LMI (Lenders Mortgage Insurance) and start building equity right away. Lower borrowing also translates to reduced interest payments over the life of the loan.
Another advantage of buying at these price points is the Queensland first home stamp duty concession, which applies to homes valued under $800,000. This concession can save buyers up to $24,000.
Benefits of Buying in Morayfield
Morayfield offers a diverse range of properties at varying price points. Whether you’re interested in a older 3-bedroom home or a modern 4-bedroom home (like this one) with the latest designs, there’s something for everyone.
Living in Morayfield provides benefits like:
- Proximity to schools, often within walking distance (e.g. Morayfield Landing estate is near Minimbah State School).
- Easy access to main highways and minimal traffic.
- Plenty of parks and recreational spaces.
- Well-connected train and bus services.
These features also attract tenants, making Morayfield properties appealing for investors. Currently, houses in the area rent for an average of $590 per week, offering an annual rental yield of 4.4%. Units rent for an average of $450 per week, with a rental yield of 4.8% (data as of November 2024).
Get Expert Advice
Before purchasing, visit the area and consult a real estate agent familiar with the region. Local experts like Current Real Estate can guide you on where to buy, types of properties available, and also how best to sell your current residence.
Explore what’s available in Morayfield Landing and Morayfield today and take the first step toward owning your own home.
Sources: RealEstate.com.au, Domain Where Can I Buy?, REIQ News.
