The Gold Coast’s most affordable markets for first-home buyers

Gold Coast first-home buyers and single-parent families face intense competition for affordable houses, but the pool of eligible properties widens for those considering units. SEARCH THE INTERACTIVE LIST OF WHERE TO BUY

Briana Morris and her daughter, Scarlett Pearce, are searching for a new Coast home close to classes for the talented dancer. Picture: NIGEL HALLETT

Median house prices in just ten Gold Coast suburbs come in below the Federal Government’s Home Guarantee schemes for first-home buyers and single-parent families.

But the pool of eligible properties widens considerably for units, with a further 36 local suburbs priced under the boosted cap of $700,000 for Queensland metro areas including Brisbane and the Gold Coast.

First-home buyers can purchase a home with a deposit of just five percent, with the government guaranteeing the other 15 per cent, removing the need for Lenders Mortgage Insurance (LMI).

Under the Family Home Guarantee, eligible single parents can buy a property with a low deposit of two per cent.

This 100-year-old house at 26 White St, Nerang is one of the oldest in the area. It was marketed by McGrath

Latest PropTrack data shows free-standing houses below the price cap were mostly limited to outlying Hinterland and northern areas, including Stapylton, Willow Vale, Pimpama and Lower Beechmont.

Nerang was the most centrally located option, where the median house price was just under$700,000. The growth suburb was also the Coast’s top pick of The Bright Starters Report, a collaboration between Canstar and Hotspotting which revealed where first-home buyers can save a deposit fastest.

The inaugural report considered median house prices and average salaries in each region, and then calculated how long it would take a single or couple to save a 10 per cent or 20 per cent deposit plus costs.

Hotspotting property expert Terry Ryder said first-time buyers could save faster by targetting the lower end of the market, partnering up, and borrowing 90 per cent.

Freshly painted with lovely floating floors and under $700,000 at 3 Castagno Ave, Nerang

“It’s not just about affordability for first-home buyers,” Mr Ryder said. “They also want desirability and the knowledge that their home will grow in value over time.”

He said Nerang was a well-connected suburb with good amenities and natural assets including parks and the river.

“While there’s lots of hype around Gold Coast icons like Surfers Paradise, for local residents suburbs like Nerang make a lot more sense.”

BL Property Co agent Braden Lamb said an influx of first-home buyers in Nerang was changing the demographic of the once-maligned suburb.

“It’s still one of those areas that is very much up and coming and has been under-rated for a long time,” Mr Lamb said.

“It’s been great to see lots of first-home buyers who have been able to get into the suburb and most of these buyers are here to stay.

“They are renovating and putting money into their properties and we’ve seen prices increase very dramatically in the last 12 months,” he said.

Houses in the northern growth suburb of Pimpama have long been on first-home buyers' radars. This four-bedroom home was just listed with RE/MAX

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The PropTrack data revealed the unit market was first-home buyers’ ticket into some of the Coast’s most desirable markets, including Runaway Bay, Mermaid Beach, Burleigh Waters, Surfers Paradise, Southport and Currumbin Waters.

“Keep in mind that in a lot of these markets, you are probably going to be looking at a one or two-bedroom apartment at that price point,” PropTrack senior economist Cameron Kusher said.

“However, first-home buyers may also find looking at townhouses in some of these markets, your money can go quite a long way.”

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Single mum Briana Morris has been house-hunting on the Gold Coast since state borders re-opened late last year.

The northern NSW resident spent countless hours queuing at the QLD checkpoint, commuting through Covid for work, and plans to relocate to the southern Coast with her two children, Jayden, 13, and Scarlett, 11.

“I work in Currumbin, and Scarlett has after-school dance classes here four days a week,” Ms Morris said.

“I’m trying to find a townhouse with a little bit of yard, but a lot of the nicer properties have sold even before we’ve had a chance to get there and see them.

“Either that, or they just seem so over-priced.”

A property priced under $700,000 and in the Palm Beach-Currumbin High School catchment would be ideal, she said.

Up to 5,000 places a year were allocated to single parents under the Family Home Guarantee.

PropTrack data found both Currumbin Waters and Elanora were eligible suburbs under the scheme, with median unit prices of $646,815 and $660,425 respectively.

Leaping back into the market: the Family Home Guarantee is a boost for single parent families. Picture: NIGEL HALLETT

Ms Morris, a café manager and aerial instructor, said she had encountered ongoing challenges purchasing a home on a single income.

“We’ve looked at some really nice places, but even then, the real estate agent just never got back to me,” she said.

PropTrack senior economist Cameron Kusher warned upcoming interest rate rises needed to be considered by homebuyers.

“People looking to access this scheme can buy a more expensive property and that’s a reflection of how much property prices have increased over the last 12 months,” Mr Kusher said.

“But on the flipside of that, anyone looking to buy needs to keep in mind the servicing of the mortgage as debt is going to get more expensive.”

This elevated townhouse with a bush aspect on Simpsons Rd, Currumbin Waters is already under offer