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Top 20 suburbs to invest with a $100,000 deposit

Australian currency fanned out and the aerial view of a leafy Australian suburb.
If you're looking to invest in the property market this year, these 20 suburbs will be ones to keep your eye on. (Source: Getty)

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.

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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.

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