How To Afford a House in Sydney

Sydney is a city experiencing some of the most significant property market pricing shifts in the world. Globally, It is the 3rd most expensive city behind Vancouver and Hong Kong (as of 2020), with property prices growing significantly greater post-covid in 2021. The Australian Financial Review has tipped these prices to surge by 17% this year alone. It may feel like getting into this property market is impossible, but Vision is here to help. Our team of experts have put together a few tips on how to afford a house in Sydney.

Get into Investments Early and Build Wealth

Buy Out West

Whilst inner city living may be a dream of yours, property in these areas can be financially inaccessible for younger couples early in their careers. Buying out west and putting those inner city living dreams on hold for a moment will not only allow you to grow your incomes, but your salary will be put towards paying off a mortgage for an appreciating asset, rather than your landlord’s pocket.

Buy Outside of Sydney and Rent

Not too keen on travelling through traffic and tollways? You could buy property in growing areas such as Newcastle or Brisbane, and rent closer to your work. Regional towns are growing post-covid due to the rise of remote working, with populations and these property prices rising. In these areas, large family homes with multiple bedrooms and a backyard can be purchased at a lower or a similar price as a small property in Western Sydney, meaning rental returns can be better realised, and the financial barrier to purchasing is lower.

Be Realistic and Determined With Your Planning

Looking at you and your partner’s projected career paths and incomes is key to understanding where you sit in being able to afford certain areas in Sydney. Average house prices are reaching above $1 million, can you afford to live in the more expensive parts of Sydney? Any goal setting you set for Sydney property purchasing needs to acknowledge your current financial circumstances and take future income streams into consideration. Alongside this planning, a determined effort with you and your partner’s careers will need to be made to ensure that your incomes grow to levels that can afford mortgage repayments. Are you willing to earn that promotion, or work towards a higher paying job in another department or organisation?

Budget and Sacrifce

Probably the most important point, if you are looking at how to afford a house in Sydney, you will need to consistently budget and sacrifice to afford the large deposit required for a home loan. You can check out our budgeting strategy here. Alongside this budgeting, other financial goals will have to be reconsidered, such as large expensive overseas holidays or a new car. These can cost thousands of dollars that would better be put towards your deposit. This can be taxing, and can feel like you are missing out, but these types of sacrifice is needed to break into this highly competitive market.

Our award-winning team at Vision specialises in getting you the best mortgage possible to afford a house in Sydney. If you’re looking to break into this market, please have use our live chat for a chat with one of our brokers, or contact us!