Why first home buyers in Australia are shunning Sydney and Melbourne for rural country living.
With house prices now ‘officially maxxed’ in Sydney, Melbourne, Brisbane and Perth, first home buyers and investors have little option but to cast their sights further than the capital cities.
The affordability and capital growth that cities aren’t providing, regional Australia, still is.
In Orange, for example, you can still buy a house with land under it, for between $250,000 – $300,000; which is a much more attainable price for first home buyers.
But the price isn’t the only thing that’s right
A move to the country also comes with many therapeutic, health-based benefits to it.
In a landmark study done by researchers in Mannheim, Germany, city living was associated with stress levels no country in the world has seen before. Dubbed Prozac Nation, city dwellers in the world’s major cities (such as Sydney and Melbourne) were found to have highly elevated arousal levels.
When an individual is aroused, they secrete cortisol, a hormone which makes them more aggressive towards their environment and themselves.
The dangers of high arousal have been well chronicled
High arousal:
· Raises your blood pressure, and your risk of heart disease and stroke
· Depresses your immune system. (The more worried you are about getting sick, the more likely it is that you will)
· It suppresses memory, fertility, and growth – can even permanently shrink the hippocampus, the part of the brain critical to the formation and recall of long term memory
- It Is associated with higher likelihood of clinical depression, and Type 2 (adult onset) diabetes
In Nature, we find an alternative – plus ourselves
Few things restore the way Nature does. So, with house prices in Sydney and Melbourne ‘officially maxxed’, it’s not surprising that many first home buyers are now contemplating a move to the country side. Relocating can be a life-changing decision. Leaving friends and family behind and moving to a new place can be intimidating. Studies have shown that moving is one of the most stressful events in a person’s life. But, with the right removalist by their side, moving can be quick, easy and stress-free. And the prospect of finally getting to own a home, a piece of land that is truly yours, is motivating many city dwellers to take the plunge and move to the country regions.
Why the door on homes in Sydney is closed?
In Sydney, the Sydney Morning Herald reports, the median house price is $1.15 million. Even if you managed to put together a 20% deposit to buy a house (it is difficult to get a loan unless you have 20% of the deposit saved up), you would still need an annual income of $186,000 to service the loan if interest rates were held at 4.50%.
A pipe dream for most people
Australia’s housing bubble exists in only one place – the mind. With affordability well beyond the reach of most, an increasing demand to halt immigration which has traditionally propped up the property and real estate industry, a long overdue ‘fall from grace’ is on the cards for this sector, industry pandits feel.
But a silver lining in every cloud exists
This silver lining is regional Australia. Prices are still affordable, depending on the suburb you choose. Rents are lower and waiting periods to get a long-term renter may take a while.
But once you get a long-term resident, the investment stabilises as does your life and your future expectancy on it! If you’re planning to move to regional Australia, do it with a Country Removalist that specialises in rural moves.