For most people owning their own home is a goal they hope to achieve. But with the average price of housing in New Zealand skyrocketing over the past 5 years is now the best time to look to our close neighbors – Australia, for a better deal? You can earn more and enjoy better work-life balance in Australia but how does housing affordability rank in a decision to make the move. In this article we take a look to see if it is more affordable to buy a house in Australia.
1. Affordability – New Zealand Vs Australia
The affordability of housing in Australia and New Zealand can vary depending on factors such as location, market conditions, and property types. Both countries have experienced fluctuations in housing prices, and certain cities or regions may be more affordable than others. There are several factors contribute to housing affordability;
Supply and Demand: High demand for housing in popular cities, coupled with limited supply, can drive up prices and affect affordability.
Interest Rates: The prevailing interest rates impact the cost of borrowing for mortgages, influencing the overall affordability of housing.
Economic Conditions: Economic factors, such as employment rates and income levels, play a role in individuals’ ability to afford housing.
Government Policies: Government policies and initiatives related to housing, such as first-home buyer grants and housing affordability schemes, can influence the market.
Location: Housing affordability can vary significantly between urban and regional areas. Major cities like Melbourne, Sydney, Perth and Brisbane tend to have higher property prices compared to some regional areas.
The current average house price in New Zealand is $924,489 vs $925,400 in Australia.
2. The Major Cities, How Do they Stack Up
In Australia, major cities like Melbourne, Sydney, Perth and Brisbane have often been associated with higher housing prices, while regional areas may offer more affordable options. The trade off being that living in one of these cities may bring better lifestyle and pay opportunities. Sydney leads the way with an average house price of $1,122,430 while Perth is the cheapest place to buy out of these four main centers.
Average House Prices – New Zealand Vs Australia
Sydney: $1,122,430
Perth: $646,520
Brisbane: $779,270
Melbourne: $777,250
Auckland: $975,000
Wellington: 760,000
Christchurch $678,000
This comparison is close but once you factor in interest rates, moving to Australia starts to look even more attractive.
3. Interest rates
Interest rates of between 6% and 7% are now the most common in New Zealand, which is about 2-3% higher than home loan rates in Australia.
In New Zealand, the official cash rate is 5.5%. While in Australia the benchmark interest rate is 1% lower, at 4.35%. This difference is reflected in the higher mortgage rates on offer from banks at home in New Zealand. Lower interest rates means your principal and interest payments are significantly reduced. This makes Australia an even more attractive place to buy your new home.
Ready to buy a house and move to Australia?
Ausmove offers specialised house moving services making the move to your new home in Australia smooth and stress-free. For more information about Ausmove’s services, please visit www.ausmove.co.nz or call (09) 360-4777.
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