Yahoo Finance Top 18 suburbs to buy a home under $1 million
The property market is starting to cool, but the outlook is still bright in these suburbs, according to new research.
The quarterly Suburb Help $100k Investment Report identified the top 18 investment locations in Australia.
The report analysed every suburb in Australia to find property markets that might suit investors with a $100,000 deposit and could buy a property valued at up to $1 million.
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To make sure the locations were suitable for investors, suburbs were excluded if they had a:
Median price above $1 million
Owner-occupier share that was less than 65 per cent or more than 90 per cent
Renter share that was less than 10 per cent or more than 35 per cent
Vacancy rate that was more than 1.5 per cent
Yield that was less than 3 per cent
Median weekly rent that had increased by less than 5 per cent over the previous 12 months
The filtering process excluded the vast majority of suburbs in Australia, leaving just a small list of investor-grade suburbs.
The cheapest median price was just $590,000, potentially making that suburb accessible for an investor. with a deposit of $59,000.
Suburb Help chief property strategist Veronica Morgan said the report was valuable for any investor wanting to enter the market.
“It’s not easy to buy a property right now, for a couple of reasons,” Morgan said.
“First, even though prices are declining in many parts of Australia, they’re still elevated following the recent boom.
“Second, investors’ borrowing power is declining with every Reserve Bank rate hike.”
Morgan said if you had a lender who was prepared to accept a 10 per cent deposit, you could still buy into a good investment location for a reasonable price.
Top 18 suburbs for under $1 million
Here are the best suburbs for property investors to buy and the median home price in the area.
Langwarrin, VIC - $590,000
Charlestown, NSW - $620,00
Bellerive, TAS - $625,000
Eden Hills, SA - $760,000
Medowie, NSW - $775,000
Macquarie Hills, NSW - $786,000
Pasadena, SA - $787,000
Kahibah, NSW - $792,000
Ngunnawal, ACT - $801,000
Macgregor, ACT - $825,000
Holt, ACT - $832,000
Cardiff Heights, NSW - $840,000
Belgrave, VIC - $845,000
Currans Hill, NSW - $845,500
Narellan Vale, NSW - $875,000
Dunlop, ACT - $880,000
Bonner, ACT - $882,000
Fletcher, NSW - $896,000
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