Opportunities abound for first-time buyers

By Terry Ryder, 28th April 2010

Plenty of affordable options are available to first-home buyers around Australia, including opportunities within 10km of capital city CBDs, according a Commonwealth Bank report.

Research by the bank indicates there were 41,500 house and unit sales in the second half of 2009 within 10% of the average first-home buyer purchase price. That equates to one in five home sales.

The bank’s Affordable locations for first home buyers report focused on locations where opportunities exist for first-time buyers to purchase a home.

Other findings from the report include:-

62% of sales in capital cities were houses, while regional areas houses accounted for a 74% of sales.

About 6% of transactions for houses have been within 10km of the CBD, indicating that opportunities for first-home buyers to own a detached home close to the city are limited.

38% of transactions for units were within 10km of the capital city CBD which suggests inner-city units are amore likely purchase option than inner-city houses.

About 19% of all sales nationally were within 10% of the relevant first-home buyer purchase price in capital cities, with the figure at 21% within the major regional areas and 16% in smaller regional areas.

"The results show that the average first-home buyer doesn’t have to live a great distance from the city, particularly if they don’t mind living in an apartment,” says James Sheffield, General Manager Mortgage Wealth. “Opportunities exist for first-time buyers providing they do their research to ensure they are making an informed decision."

Across Australia there have been 27,000 houses and 14,000 units sold during the last six months of 2009 within plus or minus 10% of the Commonwealth Bank’s average first-home buyer purchase price. That’s almost one fifth of all the sales settled during the six month period.

ENDS