If you’ve just boarded the home buyer express, chances are ‘value’ is high on your list of neighbourhood must-haves. Well, it turns out that house hunters who are happy to stay on the train for just one more stop can be rewarded with savings totalling hundreds of thousands of dollars.
When you’re house hunting, it’s not uncommon to want to snag a bargain.
One possible solution? Check out the local rail map.
New research by PropTrack shows house hunters could save hundreds of thousands of dollars simply by looking at suburbs one extra train stop from the city.
Steadily rising property prices mean one-in-three property markets across Australia now have median home values of $1 million plus.
But this doesn’t have to derail your home-buying plans.
PropTrack data reveals “dozens” of suburbs across our state capitals where buyers heading to the next station down the line can find more affordable houses.
How much more affordable?
In many areas, an extra train stop could result in six-figure savings – and in one case seven-figures – all for only a few more minutes on the daily commute.
Of course, the train station theory isn’t failsafe.
Some trains terminate in high-value suburbs. In other neighbourhoods, popular schools or nearby beaches can boost values.
But as we’ll explore below, there are many suburbs around the country where there are savings to be found.
As the nation‘s most expensive market, finding value in Sydney is challenging. But the train station theory can help.
According to PropTrack, the biggest savings can be found in Sydney’s southern suburbs. Buyers can pay a median value of $1.75 million for a house in Como – and save a whopping $747,500 compared to neighbouring Oatley ($2,497,500).
In the city’s inner west, buying a house in Ashfield (median $2.2 million) can deliver a saving of $300,000 compared to adjacent Summer Hill ($2.5 million).
Across Melbourne, the biggest savings for an extra train stop are found in Caulfield, where the median house price of $1.87 million is a thumping $1,121,250 less than neighbouring Malvern’s median of $2,991,250.
Pascoe Vale buyers who pay the suburb’s median house value of $1.049 million, can save $519,000 compared with those looking one stop closer to the city in Strathmore (median $1.568 million).
The Brisbane suburb of Corinda (median house price $1.22 million) is only one station further along from Sherwood ($1.722 million). Yet for a few more minutes on the train, buyers can save around $502,000 on the average price of a house.
Or buyers could save $350,000 purchasing in Murarrie (median value $1,187,500) instead of Cannon Hill ($1.55 million).
Many of Adelaide’s beachside suburbs are on the city’s western train lines, and the waterfront appeal can see property prices rise despite being further from the CBD.
However, there are suburbs where a single train stop can reward home buyers with big savings.
The most significant price difference is found in Claren Park (median of $1.2 million), which is $311,000 cheaper than neighbouring Goodwood ($1.511 million).
Home buyers looking at more affordable locations can save $217,000 buying in Tonsley (median $675,500) compared to adjacent Mitchell Park ($892,500).
Okay, Mosman Park (median house value of $2.4 million) is at the higher end of the price range. But it’s separated by just one train stop – and $662,500 – from neighbouring Cottesloe (median $3,062,500).
For more affordable homes, buyers opting for Clarkson ($730,000) could save $220,000 compared to jumping off the train at Currambine ($950,000).
PropTrack’s research shows you don’t have to buy a train wreck of a home to score great value.
What matters is that you research the prices of areas you’d like to buy in – and maybe cast your net a little wider.
When you’re ready to buy, we’ll cast our net far and wide to find a mortgage that matches your needs.
Contact us today – we’ll help get you started on your home-buying journey.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Paul da Silva
Director & Senior Mortgage Advisor
