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Top 20 locations where investors can buy with a deposit of $100,000

House prices might still be on the rise, but new research has revealed the top 20 locations that investors can buy into with a deposit of up to $100,000.

Commissioned by mortgage and loan brokers, Eventus Financial, the research examined every suburb in Australia to determine locations suited to investors with a $100,000 deposit who can buy a property valued at up to $1 million.

Only house markets were selected, as the report noted freestanding houses were likely to give investors better long-term capital gains than units.

Areas with a median price tag of $1 million or above were excluded, as were regions where the owner-occupier share of the market was less that 65 per cent or more than 90 per cent.

The research also looked at vacancy rates and rental price growth, excluding areas where the vacancy rate was 1.5 per cent or above, the yield was 3 per cent or below, and rent had increased by less than 5 per cent in the previous 12 months.

Regions where the number of building approvals over the past 15 months had been more than 2 per cent of the existing housing stock were also ruled out.

Eventus Financial noted this filtering process resulted in the majority of suburb clusters in Australia being excluded, leaving only a small list of investor-grade suburbs.

“To whittle them down to a top 20, these suburbs are then ranked based on the percentage of properties that have been sold in the SA3 at a profit,” the report said.

For the purposes of the research, Eventus classified a ‘profit’ as properties that sold for at least $75,000 more than the purchase price to account for transaction and holding costs.

The top 20

The final 20 locations selected are spread around New South Wales, Victoria, Queensland, South Australia and Tasmania.

The cheapest median price on the list is located in Park Grove, Tasmania, and is just $460,000, potentially making that suburb accessible for an investor with a deposit of $46,000. Park Grove is one of two Tasmanian suburbs that made the top 20.

Meanwhile, eight New South Wales suburbs are on the list, with the most affordable being Tarago with a median price of $535,000.

Victoria boasts four suburbs and the most affordable of those is Tyabb at $715,000.

Queensland’s most affordable option of the five suburbs on the list from the Sunshine State is Lower Beechmont at $610,000, while South Australia features once on the list, with Flagstaff Hill, which has a median price point of $627,500.

Source: Eventus Financial

Eventus Financial Chief Executive Officer Alex Veljancevski said despite all the talk of property prices going through the roof, investors who think outside the box can still buy a quality investment property in a quality location with a deposit of just $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,” he 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,” he said.

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Cassandra Charlesworth

Cassandra Charlesworth is a features writer for Elite Agent Magazine with over 15 years’ journalism experience in metropolitan and regional newsrooms. She has a specialist interest in real estate, tech disruption and a good old-fashioned “yarn”.