Investors expanding their portfolios this year and planning to do so on smaller budgets should consider one of the 20 suburbs identified by Eventus Financial.
The list includes suburbs where three-bedroom homes have a median of less than $1 million, making the 10% security deposit less than $100,000.
Only real estate markets are chosen, as single-family homes are likely to give investors better long-term capital gains than units.
New South Wales topped the list with eight suburbs, followed by Queensland with five and Victoria with four.
Topping the list is Safety Beach in New South Wales, where a three-bedroom house would only require a $76,000 10% down payment. This suburb has a good yield at 4.1%.
Victoria's Tyabb also made the list – homes in this suburb can be purchased with a minimum deposit of $71,500.
BEST SUBURBAN FOR INVESTORS WITH $100,000 DEPOSIT
State
Suburb
Median price (3 bedroom house)
10% deposit
Yield
NSW
Security range
$765,000
$76,500
4.1%
VIC
Tyabb
$715,000
$71,500
3.6%
NSW
Valley Heights
$736,200
$73,620
3.5%
VIC
Belgrave
$755,000
$75,500
3.4%
NSW
Millthorpe
$637,000
$63,700
3.7%
VIC
Tecome
$815,000
$81,500
2.9%
NSW
Kariong
$852,676
$85,268
3.4%
NSW
Wickham
$760,000
$76,000
3.8%
NSW
Medowie
$700,000
$70,000
4.0%
VIC
Sandhurst
$950,000
$95,000
3.1%
QLD
Reedy Creek
$988,000
$98,800
4.3%
QLD
Lower Beechmont
$610,000
$61,000
4.3%
TAS
Riverside
$501,000
$50,100
4.6%
NSW
Passage of ropes
$795,000
$79,500
3.4%
TAS
Park Grove
$460,000
$46,000
4.6%
NSW
Tarago
$530,000
$53,000
4.9%
QLD
Gilston
$850,000
$85,000
4.0%
SA
Flagstaff Hill
$627,500
$62,750
4.1%
QLD
Point Wellington
$756,000
$75,600
4.0%
QLD
Faucet
$901,500
$90,150
4.0%
Eventus Financial CEO Alex Veljancevsk said these suburbs offer investors a range of options that would not put a strain on their pockets.
"If you're willing to be open-minded about your loan-to-value ratio and your location, you can definitely buy a good investment property with a $100,000 deposit," he said. he declares.
However, Mr. Veljancevsk noted that investors with less deposits of less than 20% of the value of the property will have to pay the lender's mortgage insurance (LMI), which could be around $20,000 of the total housing cost.
"If the IMT payment were to allow you to enter the market a few years earlier than expected, it might seem like a good deal if real estate prices were to rise, say, $50,000 during that time,” he said.
—
Photo by @thomasdeluze on Unsplash.
Top Suburbs:
kawana
,
The Pelvis
,
lock
,
menai
,
kariong
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