Top Tas suburbs for small budgets

It is still possible to purchase affordable property in Hobart, if you know where to look. This report says ‘head to the fringes’.

HOBART and Tassie have been price growth national market leaders in recent years, but that doesn’t mean it is impossible to purchase affordable property.

The new Bright Stars report from Canstar and Hotspotting reveals five Hobart and five regional Tasmanian areas where housing can be in the $300,000, $400,000 and $500,000 ranges.

This places them all under the government’s Home Guarantee Scheme price caps.

In Hobart, mortgage repayments in all five areas were calculated to be less than 25 per cent of the earnings of a dual-income family buying a home with a 20 per cent deposit.

And in the rest of the state, the top five came in at under 18 per cent of a dual income.

The monthly mortgage repayments in Bridgewater were $2179, in Chigwell $2381, New Norfolk $2111, Risdon Vale $2066 and Rokeby $2426.

Median sale prices have grown gigantically in these areas, with the 10-year average annual growth ranging from 15.3 per cent in Chigwell up to 19.3 per cent in Bridgewater.

While Hobart overall was ranked the ninth most affordable market out of 14 in city and regional areas, regional Tasmania eclipsed it by coming in fifth.

Report author and Canstar’s editor at large, Effie Zahos, described regional Tassie as one of the long-term targets in the ‘exodus to affordable lifestyle’ property market trend. However, prices are no longer pumping, she said.

No.3 Kathryn Ct, Ravenswood is priced at $379,000-plus. It is listed with The Agency.

No.1 Austin Crs, Bridgewater is listed at $449,000-plus with PRD Hobart.

The most affordable regional Tassie locale in the report was Launceston suburb Ravenswood, where the monthly loan payment, with a 20 per cent deposit, was $1572. That is less than the suburb’s median monthly rent of $1603.

The report showed monthly loan repayments in George Town were $1617, Mayfield $1685, Shorewell Park $1640 and Upper Burnie $1752.

In these areas, the 10 year average annual growth figures ranged from 11.5 per cent in Shorewell Park up to 19.9 per cent in Mayfield.

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The city is a great place to live, but buyers should head to Hobart’s fringe to find affordability.

Ms Zahos said after a dozen interest rate hikes, and possibly more to come, the only way for some homebuyers to buy property – and still be able to service a mortgage – was to “borrow less”.

“Impossible you may say, however, there are plenty of suburbs and towns around the country with an affordable edge,” she said.

“The majority of locations [in the report] are below the 30 per cent income threshold that considers buyers to be in mortgage stress.”

Canstar’s Effie Zahos.

Hotspotting managing director, and report co-author, Terry Ryder said now is a time of change and opportunity.

Mr Ryder said the evidence of rising prices in some markets — at a time of high inflation, rising interest rates and other metrics, notably record low vacancy rates and rising rentals — presents an opportunity for prospective buyers early in the property life cycle.

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Mr Ryder said there current market offers the “ possibility of buying well ahead of bigger price growth, at a time when many remain on the sidelines awaiting news of a boom”.

“This year is one of those opportune moments.

“After a year in which prices fell in many locations and price growth was only moderate in others. There has been an improvement in affordability from an entry price perspective.”

TASSIE’S BRIGHT STARS

Suburb, median price, monthly rent, monthly loan payment with 20 per cent deposit, repayment as a percentage of income

Bridgewater $485,000 $1863 $2179 20.5%

Chigwell $530,000 $2080 $2381 22.4%

New Norfolk $470,000 $1950 $2111 19.8%

Risdon Vale $460,000 $1950 $2066 19.4%

Rokeby $540,000 $2167 $2426 22.8%

George Town $360,000 $1603 $1617 16.5%

Mayfield $375,000 $1647 $1685 17.2%

Ravenswood $350,000 $1603 $1572 16%

Shorewell Park $365,000 $1430 $1640 16.7%

Upper Burnie $390,000 $1612 $1752 17.8%

Source: Canstar, Hotspotting