With news headlines like ‘The typical first-home buyer will be in their 40s or 50s in a decade’ and ‘Australian housing affordability worst in 130 years’, it can be easy to see why Millennials are disheartened about buying their first home.
New research analysing mortgage application data from the first sixth months of 2017 by Credit Simple, showed the under 30 age group makes up 14 per cent of mortgage applications in Victoria, slightly less than the national average of 15 per cent.
So not all hope is lost, it’s still possible for Melbourne Millennials to buy a home they just need to know where to look.
The study also revealed the top five postcodes where Australian mortgage applicants aged under 30 wanted to live most in each state and territory.
If you’re a Millennial searching for a new home, here’s what you need to know about the five most popular areas in greater Melbourne where young home buyers are most frequently getting a foothold on the property ladder.
1. Postcode: 3029- Truganina, Hoppers Crossing, Tarneit.
The postcode 3029 topped the list for the most mortgage applications from under 30s nationwide. This could be attributed to its proximity to Melbourne’s CBD (22km west) and relatively affordable house prices, with a $447,500 median house price (MHP) in Truganina compared to the $826,000 MHP in Melbourne wide.
Truganina is a rapidly growing, up and coming family-friendly area. In fact, new lots of land are in such high demand it’s not unheard of for buyers to camp out overnight to secure the block they want. Buyers are drawn to the area based on its ease of access to freeways, its ‘English countryside’ feel, bike trails and golf courses, and plans for a new train station, school and sports facilities.
2. Postcode: 3064- Craigieburn, Roxburgh Park.
3064 came in second on the national list for the most mortgage applications by people aged under 30. With Craigieburn under 26km north of the CBD and a MHP of $443,100, the appeal for first-time buyers that are trying to keep their commute manageable and mortgage repayments down is apparent.
With a $35.5 million swim centre set to open in October 2017, grasslands, golf courses, shopping centres, and its handy proximity to Brunswick cafes and culture, you can see why larger contemporary homes with more affordable price tags are attracting Millennial buyers to the area in droves.
3. Postcode: 3977- Cranbourne.
Cranbourne is situated 43km south-east of the city and has a MHP of $430,000. Cranbourne and its surrounding areas are in a stage of rapid growth and transition. So much so, new neighbouring suburbs Cranbourne East, Cranbourne West, Cranbourne South and Botanic Ridge have been heavily developed into new housing estates in recent years.
Aerial shots of Cranbourne housing growth December 2012 to March 2017. Images: Nearmap
Part of Victoria’s most populous municipality, the City of Casey, Cranbourne and its adjacent suburbs have access to a wealth of amenities. Such as well-respected schools, leisure centres, sports fields, golf courses, the Royal Botanic Gardens, easy freeway access and the recent $110 million redevelopment of Cranbourne Park shopping centre to name a few. Buyers are also attracted by its proximity to the Mornington Peninsula and Phillip Island, perfectly positioned for a quick beach weekend away or winery day trip.
4. Postcode: 3030- Werribee.
With a $415,000 MHP and at just 32km south-west of the CBD, Werribee is the fourth most in-demand area for Millennial home buyers in Melbourne. With the population in Werribee predicted to almost double over the next 20 years and major government investment to turn it into a regional centre, Werribee appears to be a good area for young buyers to buy a starter home.
Drawcards include its mix of period homes and new builds, larger lot sizes and strong infrastructure investment, with the Werribee Plaza expansion, a new train line, marina development, Avalon airport expansion, and the proposed Australian Education City all on the cards. The Werribee Open Range Zoo and Werribee Park Mansion are not to be forgotten as hot travel destinations drawing tourist dollars to the area.
5. Postcode: 3023- Caroline Springs.
The fifth most desired location for Millennial mortgage applicants in Victoria, Caroline Springs has a median house price of $560,000 and is 25km west of the city.
A relatively new community, under 30s are attracted to this area’s new freestanding homes and modern townhouses for low-maintenance living. The well-planned estates are known for having lots of green space, walking trails, wetland views and man-made lakes. There is also a $40 million five-star hotel and entertainment complex, and a new train station opened early 2017 making travel to the city and back much easier. Caroline Springs residents will be among the first in Australia to receive NBN fibre-to-curb connections due in the first half of 2018, a big plus for Millennials.
For more advice for first-time owners check out our guide to the extra costs of buying a home, the pros and cons of building your first home and the top five items you need to make the most of a property inspection.
Happy house hunting!