30 best suburbs to buy an investment property under $800,000

Looking to buy an investment property? Here at the 30 best suburbs to be looking at, depending on your budget (Source: Getty)

TAKE OUR 3-MINUTE SURVEY: How do you compare to other property investors?

For young Aussies, it can be tough to break into the property market, especially for those who live in capital cities where prices are booming.

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.

• Also read: 5 golden rules for property investment success

• Also read: Cities where new property listings are (finally) surging

• Also read: House prices are boiling hot: Is it a bubble ready to burst?

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.

1. Cairn North, QLD - $425,000 to $835,000

2. Augusta - Margaret River - Busselton, WA - $400,000 to $585,000

3. Cleveland - Stradbroke, QLD - $600,000 to $780,000

4. Litchfield, NT - $600,000 to $740,000

5. North Lakes, QLD - $475,000 to $620,000

6. Por Adelaide, SA - $450,000 to $590,000

7. Cockburn, WA - $430,000 to $700,000

8. Orange, NSW - $387,000 to $540,000

9. Capalaba, QLD - $545,000 to $720,000

10. 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.

1. Nerang, QLD - $550,000 to $770,000

2. Nambour, QLD - $495,000 to $750,000

3. Port Macquarie, NSW - $490,000 to $750,000

4. Bald Hills - Everton Park, QLD - $560,000 to $852,000

5. Coffs Harbour, NSW - $470,000 to $945,000

6. Joondalup, WA - $485,000 to $865,000

7. Hobart, TAS - $370,000 to $785,000

8. Ormeau, QLD - $545,000 to $915,000

9. Sunshine Coast, QLD - $571,000 to $880,000

10. 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.

1. Southport, QLD - $675,000 to $720,000

2. Queanbeyan, NSW - $630,000 to $890,000

3. Buderim, QLD - $600,000 to $830,000

4. Tuggeranong, ACT - $675,000 to $807,000

5. Belconnen, ACT - $670,000 to $965,000

6. Wynnum, QLD - $630,000 to $855,000

7. The Gap - Enoggera, QLD - $645,000 to $830,000

8. Caloundra, QLD - $515,000 to $920,000

9. The Hills District, QLD - $600,000 to $830,000

10. 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.

Take our 3-minute survey to find out how you compare.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.