- Interest rates and inflation are putting pressure on investors
- Nine of the top 20 suburbs to invest on a budget are in NSW
- The top 20 list includes both metro and regional locations
It would come as no surprise if the appetite for investment has diminished following rising inflation, interest rate hikes, and more.
But it seems there are still some properties left on the market that can be had for a reasonable outset.
Top 20 investment locations for less than $100K deposit
Research from Suburb Help has identified 20 suburbs where homes can be purchased for a deposit of $100,000 or less.
“It’s not easy to buy a property right now, for a couple of reasons. First, even though prices are declining in many parts of Australia, they’re still elevated following the recent boom. Second, investors’ borrowing power is declining with every Reserve Bank rate hike,” said Suburb Help chief property strategist Veronica Morgan
The research narrowed down the options, excluding suburbs that had:
- A median price of over $1 million,
- An owner-occupier share that was less than 65% or more than 90%,
- A renter share that was less than 10% or more than 35%,
- A vacancy rate that was more than 1.5%,
- A yield that is less than 3%, and
- A median weekly rent that has increased by less than 5% over the past 12 months.
“We wanted locations that were not only likely to record above-average capital growth over the long-term but would also provide a healthy cash return right now,” said Ms Morgan.
“That’s why we limited ourselves to locations that had low vacancy rates and reasonable yields.
“As a result, if you buy a quality property in one of these locations, you should find it relatively easy to secure a reliable tenant prepared to pay a good rent.”
| Rank | State | Suburb | Postcode | Type | Median price | 10% deposit |
| 1 | VIC | Langwarrin | 3910 | Unit | $590,000 | $59,000 |
| 2 | NSW | Charlestown | 2290 | Unit | $620,000 | $62,000 |
| 3 | TAS | Bellerive | 7018 | Unit | $625,000 | $62,500 |
| 4 | SA | Eden Hills | 5050 | House | $760,000 | $76,000 |
| 5 | NSW | Medowie | 2318 | House | $775,000 | $77,500 |
| 6 | NSW | Macquarie Hills | 2285 | House | $786,000 | $78,600 |
| 7 | SA | Pasadena | 5042 | House | $787,000 | $78,700 |
| 8 | NSW | Kahibah | 2290 | Unit | $792,000 | $79,200 |
| 9 | ACT | Ngunnawal | 2913 | House | $801,000 | $80,100 |
| 10 | ACT | Macgregor | 2615 | House | $825,000 | $82,500 |
| 11 | ACT | Holt | 2615 | House | $832,000 | $83,200 |
| 12 | NSW | Cardiff Heights | 2285 | House | $840,000 | $84,000 |
| 13 | VIC | Belgrave | 3160 | House | $845,000 | $84,500 |
| 14 | NSW | Currans Hill | 2567 | House | $845,500 | $84,550 |
| 15 | NSW | Narellan Vale | 2567 | House | $875,000 | $87,500 |
| 16 | ACT | Dunlop | 2615 | House | $880,000 | $88,000 |
| 17 | ACT | Bonner | 2914 | House | $882,000 | $88,200 |
| 18 | NSW | Fletcher | 2287 | House | $896,000 | $89,600 |
| 19 | ACT | Evatt | 2617 | House | $935,000 | $93,500 |
| 20 | NSW | Adamstown Heights | 2570 | House | $985,000 | $98,500 |
Source: Suburb Help $100k Investment Report.
In a recent The Property Tribune article, it was found that one in two first-time property investors also didn’t have a plan, and one in five first home-buyers were taking over a year to purchase a home.
If you are looking to be a little more thrifty some of Sydney’s cheapest suburbs include Liverpool and Bradbury, with more details here. If you are mulling over Melbourne then that laneway capital of Australia’s cheapest suburbs can be found here. Believe ‘West is best?’ Perth’s cheapest suburbs are here. And finally, if you’re looking for the cheapest in the entire country – hold your judgment for some of these five-figure homes.
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Disclaimer: This article contains general information and should at no time be considered advice to the reader. The reader should always verify their situation with the relevant certified professionals before taking any further steps.
