If you want to get on the property ladder but can’t afford to buy a place where you’d like to live, why not buy as an investor? We’ve done the legwork to pinpoint some of the nations’ most affordable suburbs that could offer great appeal to renters.
Follow our state-by-state round-up of affordable suburbs based on the findings of the recent Aussie/CoreLogic Most Popular Suburbs for Families report. You could find the ideal investment location.
The Brisbane suburb of Springfield is located 24 kilometres from the city centre, and offers entry level houses priced from $389,500, or pay as little as $295,000 for an apartment. Over 60% of households have children, and there’s certainly plenty happening to give Springfield long term appeal – like a campus of the University of Southern Queensland, development plans for the local business hub to provide 52,000 jobs, and a low rental vacancy rate of just 3.4%.
If you’re looking outside of Brisbane, bargain hunting investors can pick up houses in the south Cairns suburb of Gordonvale priced from a low $283,000. Units are even more affordable, with entry level prices from $190,000. One in two Gordonvale households are families, and the location looks set to benefit from the expansion of James Cook University’s Cairns campus, a $120 million upgrade of the Port of Cairns, which will support tourism, backed by the $176 million expansion of Cairns Convention Centre. More good news for investors, Gordonvale has a wafer thin vacancy rate of just 0.9%.
New South Wales
Head west of the city to find affordable buying in Hassall Grove, where entry level homes are available from $653,000 or pick up an apartment priced from around $572,000. Over 70% of households have children, and almost one in four homes are rented – a plus for investors.
Newcastle’s Maitland region is set to enjoy big population growth – with the number of residents forecast to skyrocket from around 78,000 today to 104,850 by 2036. Within Maitland, Woodberry is an affordable suburb with entry level houses priced at $296,000, or $215,000 for units. It’s a popular area for families, with one in two households having youngsters, and no wonder – there’s a local primary school, a choice of nearby secondary schools and the beaches of Newcastle are just a 30 minute drive away.
Australian Capital Territory
Within Canberra, the Belconnen suburb of MacGregor offers entry level prices of about $481,000 for houses, and $359,000 for units. That’s well below Canberra’s median values of $671,000 and $431,000 for houses and units respectively. One in two MacGregor households have youngsters, and along with a neighbourhood school, the suburb also offers access to popular Umbagong District Park. As a plus for investors, MacGregor has a tiny vacancy rate of 0.6%.
Situated 27 kilometres from Melbourne’s CBD, Craigieburn offers value buying, with entry level houses priced from $479,000, or $352,000 for an apartment. Close to seven out of ten households have children, and parents in Craigieburn can choose from a good selection of local schools backed by the resources of the new Hume Global Learning Centre, Craigieburn Sports Complex and the Splash Aqua Park.
In the regional city of Ballarat, Miners Rest is a suburb bursting with families – over one in two (55.2%) households have children. Mums and dads can take advantage of a number of child care centres, play groups and play grounds, while older kids will relish a range of indoor and outdoor pools, and a wide choice of schools. All this just over an hour’s drive from Melbourne. For investors in Miners Rest, houses are priced from just $338,000 or look for an entry level apartment – prices start at around $293,000.
Hobart is the big growth story in property right now, with home values soaring ahead by 13% over the past year. Buyers can still pick up super affordable properties in suburbs like Gagebrook, where houses are available from $149,999 and entry level apartments are priced from $151,000. It’s a popular spot for families; close to six out of ten households have youngsters, and this former public housing suburb has benefitted from the local council’s Urban Renewal Plan designed to reinvigorate Gagebrook’s identity. Investors can tap into Gagebrook’s very low vacancy rate of 0.3% and yields that can go as high as 8% on some properties.
Tasmania’s second largest city – Launceston, offers good buying opportunities and in St Leonards, located a nine minute drive from the city centre, houses are priced from $226,000, with entry level apartments available from about $177,000. Almost half of households have youngsters, and St Leonards offers plenty of appeal with the city centre and Cataract Gorge recreational area both a short drive away. Punchbowl Reserve with its playground and picnicking area lies just around the corner.
The most affordable suburb among Adelaide’s top 20 locations for families is Andrews Farm, where 59.5% of households have kids. Houses in Andrews Farm can be picked up from around $247,000, or $218,000 for units. Locals can enjoy nearby Stebonheath Park with its trails, play equipment, wetlands and picnic areas right on their doorstep.
Set among the rolling hills and vineyards of the Barossa, Freeling is a popular spot among families – 50.5% of households have kids, and investors will be attracted to the affordability of houses priced from $256,000, or pay from $184,000 for an apartment. The town’s big claim to fame is being the location for filming of the television series McLeod’s Daughters, and still today families are attracted to the area – as evidenced by new housing developments incorporating a local park. All this, yet Adelaide is less than an hour’s drive away.
Perth values have come off the boil, dropping by 2.7% in the past year so value buying is definitely a possibility. Bennett Springs in the Swan district of Perth is popular with families – seven out of ten households have children, and there’s a lot to love about the area. Bennett Springs has access to the Springs retail centre, a number of schools, and a range of local parks. Investors will be attracted by the affordability too, with houses priced from $364,000 and units start at $315,000.
Less than 200 kilometres south of Perth, the Bunbury region offers good buying for investors. It’s popular with families too; in the suburb of Glen Iris half the local households have children. And there’s plenty to keep the youngsters occupied – a public golf course, a local skate park and the beach is less than a 15 minute drive away.
Darwin’s most affordable suburb amongst those favoured by families is Moulden, located about 14.5km east of the city centre. Houses are available for as little as $373,000 or from $267,000 for apartments. The suburb offers child care facilities and a primary school and investors can tap into a low vacancy rate of just 3.4%.
See something you like? Talk to your Aussie Broker about an investment loan to help you get into the property market.