The great Australian dream of owning a home is slowly slipping out of Gen Z’s hands.
Interest rates are low and superannuation does not fit the needs of younger people participating in the gig economy.
In addition to this, the unemployment rate in Australia is steadily increasing, while wage growth is slowing down.
With this in mind, homeownership is ostensibly out of the question.
However, for those with a bit of tenacity, moving to the country could be the answer.
It’s not unusual to see inner-city homes in Melbourne or Sydney fetch upwards of $1 million. Unlike their capital city counterparts, rural home prices can start from $50,000 and there is an opportunity for the younger generation to get on the property ladder.
According to the Regional Australia Institute (RAI) people consider two main points when looking to purchase a home in rural Australia – does the region have a good average income and low median house prices.
RAI’s report, “Regional Population Growth: Are We Ready?”, explores how workers living in outer city suburbs could benefit from moving to regional areas. Not only can this cut down on congestion, and save time on commuting to work, home owners’ mortgages could be paid off much quicker in the country.
For some families the move could be both financially advantageous and offer a supportive and safe community.
The RAI has also launched a new tool, “MOVE”, which has an interactive map and allows you to research the different councils around Australia, providing information on median house prices average ears to repay mortgage, average income, unemployment rates and distance from National Parks and coast lines.
According to the research, now may be a perfect time to buy in rural South Australia!
Homes in the Yorke Peninsula and Clare Valley have a median house price around $250,000, and Port Wakefield closely follows with an average of $190,000. Port Pirie, Port Augusta and Mount Remarkable also have modest median prices hovering around $150,000, which is extraordinary value given their close proximity to the Clare Valley and Flinders Ranges.
However, if you’re prepared to live a little further north you could be paying off your house in as little as three years. Areas around Kimba have an average house price of $45,000 and a low unemployment rate of 3.3%
Perhaps the great Australian dream is not that far from reality after all!