NSW Property Report
Sydney is the most populous city in NSW, Australia, and within Oceania. With over 5 million residents in Sydney and over 10 million across NSW, the housing market is flourishing. Sydney has a unique environment, vibrant culture, economic opportunities, and scenic landscapes.
With the NSW property market experiencing a price plateau, it’s the right time to purchase a house or apartment. The long-term forecast is strong. If you’re considering getting a foot in the market, speak to a mortgage broker today for expert advice on expat home loans in NSW.
Top Property Locations
More and more Australians are leaving Sydney and ‘internally migrating’ to regional NSW. While the capital city is an excellent investment opportunity, suburbs in regional NSW are often more affordable with solid growth potential.
Blue Haven
Median house price: $750,000
Blue Haven is a beautiful suburb on the Central Coast of NSW. Set on the Pacific Highway at Wallarah Creek, Blue Haven is an excellent investment property opportunity and one of the fastest-growing suburbs on the Central Coast.
In the last year, property prices in Blue Haven have shot up 29.3% but remain highly affordable for many. It’s a highly competitive area, with 161 houses sold in the past 12 months, each only on the market for 16 days. Houses are more abundant than units – Blue Haven sold only seven units last year.
Cessnock
Median house price: $580,000
Cessnock is in the Hunter Region of NSW – the largest town in Australia’s oldest wine region. While it may lack the sandy beaches of Sydney or suburbs on the Central Coast, Cessnock is a charming country area with many job opportunities and local amenities.
Cessnock’s local market is highly affordable with plenty of opportunities to buy. House prices shot up 36.3% in the last twelve months. Meanwhile, units cost around $455,000 – an increase of Up 29.1%. Approximately 300-400 properties sell in Cessnock per year.
Dubbo
Median house price: $525,000
Dubbo is a city in the Orana Region. Historically known for wheat and wool production, Dubbo is a charming city in the country. Moreover, if you’re looking for something affordable and liveable, Dubbo is worth consideration. It boasts a vibrant atmosphere with the regional city benefits of space to live, work, and grow.
There have been over 800 property sales in Dubbo in the last year – the majority of transactions were house sales, with a few units selling too. House prices have increased 25% while units remain relatively the same.
Average Property Price
The property market soared over the last few years. During the coronavirus pandemic, house and unit prices across Australia increased dramatically. Sydney, however, saw some of the highest property prices in Australia’s history. At the height of the property market boom, average house prices in Sydney neared $3 million.
Fortunately, the NSW property market is cooling, and with our help, you can buy relatively affordable homes across the state.
Average House Price
The current average house price for a residential property in NSW costs $1,669,855. Three-bedroom houses are slightly cheaper, costing $1,483,754. In the last ten years, house prices in NSW have increased by 7.2%. The recent housing boom in Sydney is stabilising, with house prices down 4 – 5% since last quarter.
If you’re looking to borrow money to purchase a house in Sydney or regional NSW, speak to a specialist mortgage broker today about your expat home loan options.
Average Unit Price
Unit prices are averaging $715,316 at the moment. While unit prices did increase throughout the property boom, they remain relatively stable and affordable. Unit prices have increased by 3.9% in the last decade – much less dramatically than Sydney house price changes. Consult a professional mortgage broker to learn more about your mortgage options to purchase a unit in NSW.
Average Apartment Price
The average two-bed apartment price in NSW is currently $756,479 – an increase of 4.4% over ten years. Two-bedroom apartments in NSW have steadily grown over time, suggesting a robust long-term investment opportunity. If you’re moving to Sydney, NSW, from overseas, consider your expat investment property mortgage choices.
Average Number of Properties Sold per Month
About 20 houses have sold in Sydney CBD in the past twelve months. On the other hand, 233 apartments and units have sold, averaging 57 days on the market. There are between 3,000 and 4,000 interested home buyers in a very competitive property market.
Meanwhile, there are far more opportunities to purchase houses and units in other parts of NSW. For instance, in Surry Hills, 99 homes sold in the last year for a median price of $2,060,000. In Mount Druitt, over 200 properties sold for a median price of $875,000.
NSW boasts many highly sought-after suburbs and cities. However, with the right team by your side, you can find excellent property opportunities in high-demand areas with strong growth potential and charming neighbourhoods.
Stamp Duty Costs in New South Wales
Stamp duty is a type of tax you pay based on the value of your property. In NSW, you must pay stamp duty when purchasing a property, including your home, holiday home, or an investment property, and buying vacant land. For most Australian residents, stamp duty in NSW ranges between 1.25% and 5.5%.
- Property valued between $0 – $15,000: 1.25% (you must pay a minimum of $10)
- Property valued between $15,000 -$32,000: $187 plus $1.50 for every $100 over $15,000
- Property valued between $32,000 – $87,000: $442 plus $1.75 for every $100 over $32,000
- Property valued between $87,000 – $327,000: $1,405 plus $3.50 for every $100 over $87,000
- Property valued between $327,000 – $1,089,000: $9,805 plus $4.50 for every $100 over $327,000
- Property valued above $1,089,000 :$44,095 plus $5.50 for every $100 over $1,089,000
The average house price in Sydney ($1,669,855) would cost $76,044.50 in stamp duty fees.
Moreover, in NSW, foreign buyers must pay an 8% stamp duty surcharge. This doesn’t include Australian residents living abroad. However, if you’re an expat or permanent resident purchasing Australian property with a foreign spouse, you may wish to consider the 8% surcharge.
Other Property Costs in New South Wales
- Deposit: Aim to save at least 20 – 30% of the purchase price to avoid paying lenders’ mortgage insurance. The higher your mortgage deposit, the better your home loan terms and interest rate. Expats earning type 2 foreign currencies may need a bigger deposit as some lenders won’t consider 100% of your earnings.
- Valuer Fee: Between $300 and $500, depending on the property size, location, and type. Rural properties in NSW might cost.
- Conveyancing and Legal Fees: Between $700 to $2,500.
- Lender Fees: Between $500 to $800.
- Building Inspection Fee: Between $300 to $600.
- Pest Inspection Fee: Between $300 to $600.
- LMI: This depends on your loan-to-value ratio. You can refinance your home loan to eliminate LMI monthly repayments.
- Mortgage Registration Fee: $146.40
- FIRB Application Fees: Between $4,000 and $237,600, depending on the property value. You only have to apply to FIRB if you are not an Australian citizen or permanent resident.
Loan Options
Australian expats and permanent residents living overseas are eligible for most loan products. You can apply for fixed-rate or variable-rate home loans or refinance your preferred loan structure a few years later.
Equally, you could apply for a principal and interest repayments loan or interest-only loan repayments. We’ll help you structure your home loan to suit your needs.
You may find your borrowing power isn’t as strong when you earn a foreign income. Many lenders won’t consider your total earnings in some currencies. So, when comparing home loans, speak to an expert mortgage broker about which lenders will offer competitive interest rates for your financial situation.
Pros and Cons of Buying in New South Wales
Property in NSW is highly sought after. Whether you opt for a house in the incredibly popular capital city or set your sights further afield in regional NSW, there are plenty of excellent investment opportunities.
The advantage of buying in NSW is that your investment will have promising growth potential. Even if you buy a house in one of the less up-and-coming neighbourhoods, there are many highly affordable homes with excellent future forecasts for an owner-occupier. Moreover, NSW is a great state for property investors with good rental growth.
The disadvantage of buying property in NSW is that house prices are incredibly high in Sydney and some of the surrounding suburbs. If you’re keen to move to the Central Coast, consider looking at regional areas with lower property values and compare home loans to get the right loan amount for your budget.
Key Facts About New South Wales
NSW has the highest population of all of Australia’s states, and 64.5% of the state’s population lives in Greater Sydney. According to the NSW government, NSW also has the fastest growing population as more and more expats, foreign residents, and other Australians move to the beautifully scenic state. In fact, almost a third of NSW residents were born overseas.
If you’re eager to move to NSW and have been comparing home loans, speak to an expert mortgage broker about expat home loans today. We’ll help you secure competitive mortgage rates with a specialist financial institution and land your dream home.
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