After recent rate cuts and an easing in lending practices, the NSW property market is starting to heat back up. Now is a perfect time for first homeowners and investors alike to snap up a bargain across NSW. If you are already a homeowner, now is the best time to have a look at the health of your home loan, you might be paying too much. A perfect storm has lowered interest rates so don't be afraid to refinance your loan.

A rate cut means more savings for you, so what's the best home loan? I like local lender Newcastle Permanent Building Society; they offer full-featured home loans with a delightfully low fixed rate. There are many great packages available across NSW so do your research and find the best loan for you.

While the average house price has decreased in the last year, Sydney still boasts the most expensive real estate, with average house prices tipping in at over $800000. There are ways now to enter the market with less money; make a mortgage comparison and find a lender with a high LVR but beware of attracting LMI fees. Even though rates are low, and lenders are willing to lend more, pay attention to the fine print, it's still possible to get a dud deal.

Right now, there exists a rare opportunity to enter a historically expensive market at a manageable price, so where is the hottest property in NSW?

Hornsby

Median house price: $630000

Hornsby is a thriving suburb on Sydney's north shore, roughly 25kms to Sydney's CBD. Hornsby is well serviced by public transport and is a hub for the surrounding area. With a mix of free-standing homes and high-rise apartments, Hornsby retains a bushland charm while offering modern, affordable living.

Batemans Bay

Median house price: $405000

Located a cruisy 4.5 hours from Sydney, and just two hours from the nation's capital, Batemans Bay is a suburb on the rise. Nestled on the river mouth of the stunning Clyde River, this charming town is the gateway to the south coast and represents amazing value for anyone looking for a sea change.

Pilliga

Median house price: < $150000

You're in Yowie country now! Pilliga is a charming village 100kms west of Narrabri and skirted by the Pilliga, over 5000kms of semi-arid native woodland, the largest remnant forest of its type in NSW. Due to its remote location and low population, Pilliga isn't exactly full of employment prospects, but property prices are at rock bottom. This spooky area is a hot spot for sightings of a humanoid-like creature known as "the Yowie."

Tumbi Umbi

Median house price: $640000

We sure know how to name our suburbs. Tumbi Umbi is a delightful suburb of the Central Coast, its colorful name is taken from the native language, and roughly translates to "a place of much water." Tumbi Umbi has a pleasant lack of high rise or medium density development, retaining a semi-rural urban charm that is missing from inner-city suburbs. Modern convenience is just a short drive away, with the Entrance at just 7kms and the bustling hubs of Gosford and Tuggerah 20kms down the road.

Newcastle

Median unit price: $510000

Touted by many to be the next big city in NSW, Newcastle has it all. A vibrant arts scene, top-notch universities, and waterfront views to make Sydney jealous. While home prices have soared, unit prices remain low and stable. Newcastle is an excellent choice for investors as there is never a shortage of university students needing homes.

Forget Sydney; there are many fantastic places to purchase property without having to refinance your home loan or sell a kidney. Thanks to an extensive public transport network, you can live in Tumbi Umbi and work in Sydney. For the self-employed, rural and inland NSW represents fantastic value and a change of pace from our crowded cities.