Some cities are more premium than others

When you’re off house-hunting, you’ll know that a property in the city is going to need a much more significant home loan than one out in the country. You’ll also probably know that places like Sydney and Melbourne are going to be far more expensive. After all, CoreLogic RP Data reports that they recorded 9.5 per cent and 11.1 per cent respectively over the last 12 months – these cities are heating up, and prices are reflecting it.

However, you might be surprised to learn just how much of a difference there is between the cities, particularly when considering the premium suburbs. Places like Darling Point and Centennial Park are home to some of the most luxurious properties in Sydney, and possibly have some of the most expensive residential lots in the country.

In fact, Darling Point was recorded by CoreLogic as having close to $7 million as a median value for houses. Even units have a median value in the millions – a price that could buy you several entire houses elsewhere in Australia.

Looking further afield

Meanwhile, the premium suburbs of Tasmania have a far more reasonable median value – just over $800,000 for houses and almost $550,000 for units – both in Battery Point, Hobart. For the same cost of a unit in Centennial Park, you could buy two of the most expensive houses in Hobart. This kind of disparity is incredible.

So what does this mean for home buyers? Differences like these just show how important location is if you are after a premium suburb to live in. The very best of one city might be well out of your price range, but go a little further out and you might discover an equally fantastic place, but an awful lot cheaper.

Of course, the first thing any home buyer needs is a good home loan. Make sure you get into contact with a mortgage broker before beginning your search!