It is fair to say that coastal property prices over the past few years are dragging capital city growth. However this means there are now more buying opportunities for people considering a sea change.
The biggest advantage associated with coastal living is relatively cheaper costs. One recent industry report found that house prices in coastal areas are $70,000 less than the national metropolitan average of $487,000, making it a signifi cantly more affordable option. However there are some risks to consider before buying your personal seaside resort.
In towns with smaller populations, vacancy rates on the rental market can be higher, and as a result, lenders may demand higher deposits. Also don’t assume that a house worth $280,000 on the coast is a lower risk than buying an $800,000 apartment in Sydney.
Cities have bigger populations and therefore more liquid property markets with more buyers and sellers. On the fl ipside, when the market takes a breather, it can take significantly longer to fi nd a buyer for your coastal home.