New Zealand markets closed
  • NZX 50

    11,102.84
    -70.53 (-0.63%)
     
  • NZD/USD

    0.6476
    -0.0003 (-0.04%)
     
  • ALL ORDS

    7,339.30
    -52.40 (-0.71%)
     
  • OIL

    111.28
    +0.95 (+0.86%)
     
  • GOLD

    1,842.80
    -3.50 (-0.19%)
     

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

·3-min read
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.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting