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First home buyers in particular will face the dilemma of wanting to buy a house but not wanting to move outside of the city, or staying in their local area but not being able to afford a unit big enough.
So, the solution to this problem for many is ‘rentvesting’. The idea is that you buy an investment property to get into the market, while remaining renters in the area you want to live in.
“A home isn’t just somewhere to live – it’s also an economic asset. So you have to balance the emotional concerns about liveability and security with the hard-headed concerns about financial returns,” CEO of Well Home Loans Scott Spencer said.
Here are 30 areas around Australia where you can buy a house with good long-term growth potential and good cash flow for a budget of between $600,000 to $800,000, according to Well Home Loans research.
Budget of $500,000 to $600,000
On the smaller side of the budget, here are the 10 best areas to buy and the average home sold price in the area.
Cairn North, QLD - $425,000 to $835,000
Augusta - Margaret River - Busselton, WA - $400,000 to $585,000
Cleveland - Stradbroke, QLD - $600,000 to $780,000
Litchfield, NT - $600,000 to $740,000
North Lakes, QLD - $475,000 to $620,000
Por Adelaide, SA - $450,000 to $590,000
Cockburn, WA - $430,000 to $700,000
Orange, NSW - $387,000 to $540,000
Capalaba, QLD - $545,000 to $720,000
Redcliffe, QLD - $490,000 to $735,000
Well Home Loans said these areas have vacancy rates below 1.5 per cent and yields above 3.5 per cent meaning there is a high demand for rental properties with solid long term growth.
Budget of $600,000 to $700,000
Bumping things up a notch and there are the 10 areas you can buy a home with an average price of under $700,000.
Nerang, QLD - $550,000 to $770,000
Nambour, QLD - $495,000 to $750,000
Port Macquarie, NSW - $490,000 to $750,000
Bald Hills - Everton Park, QLD - $560,000 to $852,000
Coffs Harbour, NSW - $470,000 to $945,000
Joondalup, WA - $485,000 to $865,000
Hobart, TAS - $370,000 to $785,000
Ormeau, QLD - $545,000 to $915,000
Sunshine Coast, QLD - $571,000 to $880,000
Nundah, QLD - $600,000 to $826,000
These are areas where upwards pressure is being placed on weekly rents and property prices, according to the research.
Also, it’s unlikely a significant number of new houses would be built in these areas in the coming years.
Budget of $700,000 to $800,000
Finally, for those who are looking for a slightly bigger, or more expensive house, here are the top 10 with an average price of under $800,000.
Southport, QLD - $675,000 to $720,000
Queanbeyan, NSW - $630,000 to $890,000
Buderim, QLD - $600,000 to $830,000
Tuggeranong, ACT - $675,000 to $807,000
Belconnen, ACT - $670,000 to $965,000
Wynnum, QLD - $630,000 to $855,000
The Gap - Enoggera, QLD - $645,000 to $830,000
Caloundra, QLD - $515,000 to $920,000
The Hills District, QLD - $600,000 to $830,000
Gold Coast, QLD - $520,000 to $900,000
Much like the others, these areas have very low occupancy rates, under 1.5 per cent, and good yields so there is a good chance of having your property occupied by renters while its value builds.