Easing affordability provides bargain buys for investors
Housing affordability in two capital cities across Australia has improved making it a great time for investors to find some bargain buys and build their portfolios.
Both Perth and Brisbane currently represent great value for money for property investors.
Housing affordability has improved in both cities over the past year, according to credit rating agency Moodys.
In Perth, the average household spends about 21% of their income on mortgage repayments, down from 23.9% a year earlier.
This is the lowest level since 2004, and is a result of the low interest rate environment, migration easing from its recent peak and moderating prices over the past year.
Similarly, conditions have also eased in Brisbane where households spend about 23% of their income on mortgage repayments.
The improvement in the housing market in the Queensland capital can be attributed to many of the same reasons seen in Perth.
As both of these cities continue to transition from the resources boom to develop strong and diversified economies, investors are presented with a window of opportunity to acquire high-performing properties at reasonable prices.
Both cities represent great value for money, particularly when compared to Sydney and Melbourne, where households spend 39% and 32%, respectively, of their income on mortgage repayments.
Given the strong, long-term fundamentals of both Perth and Brisbane, it’s a great time for savvy investors to take advantage of the improved buying conditions.