City dwellers could halve their mortgage and commuting distance
Residents of outer suburbs in some of Australia’s biggest cities would be financially better off living in regional centres, new research shows.
City dwellers could take a slight pay cut to drastically reduce their mortgage by moving to regional towns, according to a new Regional Australia Institute (RAI) report.
The institute’s Co-Chief Executive Dr Kim Houghton said the ratio of house prices to average income was a good measure for people who are considering the move. Dr Houghton said the report, Regional Population Growth: Are We Ready? raises serious questions about the type of future Australia has if predicted population growth continues.
“The new research has shown that many workers living in our outer city suburbs could be financially better off if they moved to regional Australia,” Dr Houghton said. “Many home owners in our state capitals are paying double the mortgage of their regional city counterparts, but have a similar average wage. Australia’s population is set to grow by up to 19 million by 2056. But if we continue with our current geographic patterns of settlement, most of that population will end up in the outer suburbs.”
Safe, welcoming environment
Bendigo and Adelaide Bank Director David Matthews said job opportunities were growing in regional Australia, and it often offered a safe welcoming environment for families.
“With an intelligent and sustainable population strategy, Australians no matter where they live, can continue to enjoy the lifestyle that we’re most famous for around the world.”
Where can you pay off your mortgage faster?
The RAI has also unveiled its latest tool, MOVE, which allows potential home owners to find out which areas in Australia give them the best chance of paying off their mortgage faster.
By combining the average wage of a particular wage Local Government Area (LGA) with the average house price, people can quickly find out where they could pay off their mortgage the fastest.
A copy of Regional Population Growth – Are we ready? can be found here.
The new tool, MOVE, is available here.