Several suburbs in the inner west have climbed into the million dollar range including Ashfield, Camperdown, Earlwood, Five Dock, Homebush, Lilyfield and Petersham. The inner west price rise has pushed further west into the Canterbury Bankstown region with Hurlstone Park and Ashbury moving into the million dollar median price range. On the coast, many suburbs on the northern beaches now also command seven figure prices – Davidson, Allambie Heights, Beacon Hill, Cromer, North Narrabeen, Warriewood, Wheeler Heights, Frenchs Forest and Terrey Hills.
For home buyers, the price rise can seem intimidating but property prices have been rising for centuries and they will continue to rise. Property prices are influenced by inflation and rise somewhat in line with the price of other goods and services over time. One hundred years ago you could buy a hamburger for 5 cents, now it’s $10 and soon it may well be $20. When buying a property, the most important factor to assess when organising a loan is affordability. If you have enough funds to comfortably make the repayments on your loan then the price is suitable.
Home owners can take advantage of rising property prices by tapping into the equity in their property to make further investments. Your equity is essentially the profit you would make if you were to sell your property and pay off the mortgage but it is possible to access your equity without selling your property. This equity can be used, for example, to put a deposit down on an investment property.
Contact your mortgage broker or financial adviser for more information about buying a property or accessing your equity.
Director and Founder of 1st Street Home Loans, Jeremy Fisher, is one of the most awarded mortgage brokers in the industry and winner of the Australian Broker Association's prestigious 'Australian Broker of the Year'. Since 2001, Jeremy has settled in excess of $500 million worth of property loans and delighted clients with exceptional results and highly personalised service. 1st Street Home Loans specialises in Home Loans, Commercial Loans, Leasing and Financial Planning.