Where in Australia can you still buy a property with a $50K or $100K deposit?

The housing market in Australia can be daunting, especially in major cities, and if you’re currently looking to purchase a home, many suburbs that were once affordable may now be inaccessible. Say you have a deposit of $50,000 saved up, and you’ve worked out how much you can afford to borrow on your salary – is it still possible to find somewhere?

Canstar’s new Deposit Stars report has found that there are still some locations where potential buyers can find a home with a $50,000 or $100,000 deposit. The report, powered by property data analysis from HotSpotting, has revealed 150 promising locations across Australia’s eight capital cities, as well as six regional markets, for buyers on a budget.

Introducing the report, Canstar Ambassador and InvestSMART Money Expert Effie Zahos reflected on the current state of the property market in the nation, saying that even with the pace of house price growth slowing down, affordability remains a major challenge. For prospective buyers, then, units are increasingly presenting an affordable option.

The Deposit Stars report reflects this trend, with almost a third of the suburbs picked featuring apartments rather than houses. “While the dream of a white picket fence may not be for everyone, entering the market on a tight budget may still be in reach,” Ms Zahos said. If you’re looking for your first property, then, the Deposit Stars list could be your starting-off point.

Where can you buy a property in a capital city with a $50K or $100K deposit?

For the full picture, including suburbs, property data, estimated fees and mortgage repayment calculations, you can download the Deposit Stars report for free, but below is a snapshot of some of the places where properties in this range can potentially still be found.

Brisbane

According to the Deposit Stars report, suburbs where you can purchase a home with a $50,000 deposit include Kippa-Ring and Bowen Hills, where you could purchase a unit, or Brendale, where you could purchase a house. For a $100,000 deposit, you could buy a house in Fitzgibbon or Petrie or a unit in Clayfield.

Sydney

With a $50,000 deposit, you could purchase a unit in Wiley Park, Jamistown or Liverpool in Sydney. With a $100,000 deposit, you could buy a unit in Hurtsville, Westmead or Newtown.

Canberra

In Canberra, purchasing with a $50,000 deposit could get you a unit in Mawson, Chifley or Belconnen. With $100,000, you could buy a house in Evatt, Isabella Plains or Holt.

Melbourne

You could purchase a house in Melbourne with a $50,000 deposit in Melton South, or buy a unit in Brunswick West or Notting Hill. With a $100,000 deposit, you could purchase a house in Epping, Sunbury or Heidelberg West.

Hobart

With a $50,000 deposit, you could purchase a house in Clarendon Vale or Risdon Vale in Hobart. With $100,000 you could purchase a house in Glenorchy, Blackmans Bay or Kingston.

Adelaide

In Adelaide, a $50,000 deposit can get you a house in Evanston or Elizabeth Sound, or a unit in Plympton. With $100,000 you could purchase a house in either Mitchell Park, St Clair or Bellevue Heights – all at a 90% LVR.

Perth

According to the Deposit Stars report, with a $50,000 deposit, you could purchase a unit in Belmont or East Perth or a house in Midland. With a $100,000 deposit, you could buy a house in St James, Forrestfield or Osborne Park.

Darwin

If you want to buy property in Darwin with a $50,000 deposit, you could purchase a house in Karama or Moulden, or a unit in Coconut Grove or Stuart Park. With a $100,000 deposit, you could buy a house in Leanyer, Rapid Creek or Jingili.

Where can you buy a property in a regional market with a $50K or $100K deposit?

Regional Queensland

According to the Deposit Stars report, you could buy a property with a $50,000 deposit and an 80% LVR in Manunda, Depot Hill and Charters Towers City. With a $50,000 deposit and at 90% LVR, or with a $100,000 deposit and a 80% LVR, you could purchase a house in Kin Kora, Rockville or Cranbrook. At a 90% LVR and with a $100,000 deposit, you could purchase a house in Sippy Downs, Pialba or Frenchville.

Regional NSW

With a $50,000 deposit and 90% LVR – or $100,000 and 80% LVR – you could buy a house in Albury, Muswellbrook or Wagga. With $100,000 and a LVR of 90% you could buy in Glenroy, Lake Haven or Wallsend.

Regional Victoria

A $50,000 deposit could get you a house in Mildura, Long Gully or Redan in Regional Victoria. With a $100,000 deposit, you could buy in Mount Clear, Flora Hill or Wallan.

Regional Tasmania

With a $50,000 deposit and at an 90% LVR, or a $100,000 deposit and a 80% LVR, you could buy a house in Devonport, Shorewell Park or Mowbray. With a $100,000 deposit and 90% LVR, you could purchase in Launceston, Sorrel or Norwood.

Regional South Australia

A $50,000 deposit could buy you a house in Mount Gambier, Renmark or Wallaroo at an 90% LVR. With $100,000 you could purchase those suburbs at an 80% LVR, or purchase properties in Tanunda, Encounter Bay and Goolwa South at a 90% LVR.

Regional Western Australia

Potential buyers have options to purchase with a $50,000 deposit and 80% LVR in Regional Western Australia, with properties in Geraldton, Boulder or Narrogin available. At a 90% LVR and with a $50,000 deposit, they could buy in East Bunbury, Halls Head or Mandurah. Buyers with a $100,000 deposit could also purchase these properties at an 80% LVR. Buyers with $100,000 at a 90% LVR could purchase in Falcon, Broome or Dudley Park.

How were the locations decided?

The Deposit Stars report used two loan-to-value ratios (LVRs) to determine the maximum house prices available with each deposit. An 80% LVR (which is a 20% deposit of the property price), and a 90% LVR, which is a 10% deposit of the property price. This meant that the maximum house price for a $50K deposit was $500,000 (at 90% LVR) and $1,000,000 for a 10% deposit (at 90% LVR).

Once all the eligible locations were determined based on the price caps, a series of metrics were then reviewed to identify which were the most promising locations for potential buyers to purchase in. These included:

• Price growth: Growth of property prices were reviewed, with locations that had properties with positive growth over the last quarter ranked higher
• Rental growth: Locations that had properties with low vacancy rates (less than 2%) and with a steady growth in rent. This is important for potential buyers who could be hoping to invest.
• Infrastructure: Locations that had close proximity to infrastructure like basic transport, schools, hospitals and supermarkets.

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