Melbourne property getting less affordable

First home buyers are being locked out of the Melbourne housing market because of soaring process and interest rate rises.

Buyers who waited until after the federal government’s boosted grants ended in the hope of cheaper prices have missed out completely. Monthly repayments on a typical first home in Melbourne rose from $2114 to $2600 in the year to the end of December 2009 according to the Commonwealth Bank / HIA affordability report.

Affordability of housing in Melbourne declined by 23% according to the report. Despite this, Melbourne remains the most affordable of the capital cities and Sydney is the least affordable.

If you are interested in buying property in Australia, including Melbourne and  Sydney, the property and mortgage advisors at Intellichoice have access to a range of property developments, including apartments, houses, townhouses and land and house packages.