Top 20 suburbs to invest with a $100,000 deposit
The Aussie real estate market hasn’t slowed down just yet and there are plenty of opportunities for investors looking for a good return.
New research commissioned by Eventus Financial has identified the top 20 investment locations in Australia for investors who have saved a $100,000 deposit.
The quarterly Eventus Financial $100k Investment Report analyses every suburb in Australia to find house markets that might suit investors who can buy a property valued at up to $1 million.
Also read: Rental affordability a ‘growing concern’ as prices skyrocket
Also read: ‘Total mayhem’ as 200 people show for house inspection
Also read: 6 property market forecasts and predictions for 2022
Only house markets are chosen because freestanding houses are likely to give investors better long-term capital gains than units, the report said.
Suburbs have been excluded if the median price for a three-bedroom house is over $1 million, the share of owner-occupiers is less than 65 per cent or more than 90 per cent, the vacancy rate is 1.5 per cent of above and the yield is 3 per cent or lower, among other variables.
The suburbs are then ranked based on the percentage of properties that have been sold at a profit.
The 20 locations are spread around New South Wales, Victoria, Queensland, South Australia and Tasmania.
The cheapest median price is just $460,000, potentially making that suburb accessible for an investor with a deposit of $46,000.
Here are the top 20 suburbs for investors looking to purchase with a $100k deposit.
Suburb | Median price (3-bed house) | Yield |
Safety Beach, NSW | $765,000 | 4.1 per cent |
Tyabb, VIC | $71,500 | 3.6 per cent |
Valley Heights, NSW | $736,200 | 3.5 per cent |
Belgrave, VIC | $755,000 | 3.4 per cent |
Millthorpe, NSW | $637,000 | 3.7 per cent |
Tecoma, VIC | $815,000 | 2.9 per cent |
Kariong, NSW | $852,676 | 3.4 per cent |
Wickham, NSW | $760,000 | 3.8 per cent |
Medowie, NSW | $700,000 | 4 per cent |
Sandhurst, NSW | $950,000 | 3.1 per cent |
Reedy Creek, QLD | $988,000 | 4.3 per cent |
Lower Beechmont, QLD | $610,000 | 4.3 per cent |
Riverside, TAS | $501,000 | 4.6 per cent |
Ropes Crossing, NSW | $795,000 | 3.4 per cent |
Park Grove, TAS | $460,000 | 4.6 per cent |
Tarago, NSW | $530,000 | 4.9 per cent |
Gilston, QLD | $850,000 | 4 per cent |
Flagstaff Hill, SA | $627,500 | 4.1 per cent |
Wellington Point, QLD | $756,000 | 4 per cent |
Robina, QLD | $901,500 | 4 per cent |
Eventus Financial CEO Alex Veljancevski said that despite all the talk of property prices going through the roof, investors thinking outside the box could still buy a quality investment property in a quality location with a deposit of $100,000.
“If you want to put down a 20 per cent deposit on a house close to the centre of a major capital city, you’ll need much more than a $100,000 deposit,” Veljancevski said.
“But if you’re willing to be open-minded about your loan-to-value ratio and location, you can definitely buy a good investment property with a $100,000 deposit.
Veljancevski said if your deposit was less than 20 per cent, you’d likely have to pay lender’s mortgage insurance (LMI).
“LMI might be more than $20,000, which is a lot of money. But if paying LMI were to allow you to enter the market a couple of years ahead of schedule, it might seem like a bargain if property prices were to increase, say, $50,000 in that time,” he said.
“If you’re a first-home buyer, you might also be able to qualify for first-home-buyer assistance, depending on which state you live in and the rules of your state’s scheme.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.