How to buy for under $750,000

The Aussie property market has been described as a ‘fascinating beast’ with the housing supply crisis fuelling the ongoing price fire. But there is still hope for buyers with a budget of $750,000.

The Aussie property market has been described as a “fascinating beast” with the housing supply crisis fuelling the ongoing price fire but there is still hope for buyers with a budget of $750,000.

The latest HTW Month in Review report has revealed where buyers can get into the market with that budget if they are willing to compromise.

“The residential property market is a fascinating beast at present, marked by diverse performances across the various capital cities and regional areas,” HTW director Chris Hinchliffe said.

“The national median dwelling price sits at around $825,000, with capital cities averaging circa $905,00 and regional areas around $673,000.

“While a budget of $750,000 may be challenging to secure a house anywhere close to the CBD in Sydney or Melbourne, it can open doors to houses or well-located units in other major cities - and the variety of offerings around regional Australia is naturally diverse and extensive.”

The report found there were just five declining house markets across the country - Alice Springs, Launceston, Burnie/Devonport (start of decline), Melbourne (declining market) and Port Macquarie (Approaching bottom of market).

Six markets have hit rock bottom - Ballina/Byron Bay, Coffs Harbour, Geelong, Illawarra, Lismore and Southern Highlands.

There are now nine markets at the start of their recovery, 20 markets categorised as “rising markets”, and four approaching the peak of their markets.

Currently at the peak of their market is Albany, Brisbane, Bundaberg, Dubbo, Mount Gambier, Tamworth and Toowoomba.

National Property Clock - Houses

The median house price in Brisbane tipped over $1 million last month, with the latest PropTrack Home Price Index noting that house prices spiked by a massive $74,800 in the year to June, the biggest increase in the country.

The median house price in the River City is now $1.051 million.

Brisbane house values have ticked over $1m iStock

Homes in regional Queensland rose at a higher pace than Brisbane, up 9.2 per cent in 12 months to $719,000 - up $70.700.

Townsville leads the charge as not just the strongest Queensland SA4 region but the top performer in Australia, with an 18.7pc rise in its median home price to $546,000 over the past year.

“The Townsville residential market continues to have an excess of buyers over sellers with competition remaining fierce between owner-occupiers and investors,” HTW Townsville director Darren Robins said.

Aerial shot of Castle Hill, Townsville, where house values are the strongest in the nation

Meanwhile in Brisbane, HTW director David Notley said the $750,000 price point represented a “crucial threshold” for many buyers.

“This figure sits comfortably below the city’s median house price of approximately $1 million yet offers genuine opportunities for both first homebuyers and investors willing to make strategic compromises,” Notley said.

“Buying at $750,000 in Brisbane makes for a sound decision in property fundamentals.

“Buyers looking to escape the rental market will find they can secure their own property at or around $750,000 for a monthly outlay that’s probably not much more than what they’re already paying in rent.”

Notley said that while Brisbane still offered opportunities for those on a $750,000 budget, the type of property available had changed.

“In Brisbane’s most central locations, $750,000 firmly positions you in the unit market,” he said.

“The days of securing a house at this price are well and truly behind us, but the attached housing sector continues to deliver great opportunities.”

On the Gold Coast, $750,000 detached housing opportunities are becoming “increasingly scarce”.

HTW Gold Coast director Sam Gray said homebuyers and investors would likely have to settle for a unit.

It was a similar story on the Sunshine Coast.

National Property Clock - Units

Meanwhile, HTW Sydney director Shaun Thomas said a budget of around $750,000 represented the entry level for land within Greater Sydney, but if you don’t have a tent, your best bet to land a detached house was in the Blacktown to Penrith corridor.

“Want unobstructed water views but only have around $750,000 to spend? Then set your sights on Gunderman on the banks of the Hawkesbury River,” he said, pointing to the recent sale of a two bedroom cottage at 6692 Wisemans Ferry Rd for $700,000.

For those wanting to crack the more desirable suburbs, units are the best bet, according to the report.

As for Byron Bay, good luck, unless you are willing to look further across the shire.

“Byron Bay is no place for a lazy $750,000,” property valuer Mark Lackey said.

“In fact, $750,000 is going to have to work its fingers to the bone to achieve much of anything in Byron Bay.”

Aerial view of the pass in Byron Bay, which has been a magnet for celebs Photo - iStock

In Melbourne, buyers are better off looking to the outer suburbs for a traditional family home.

“A budget of $750,000 in Melbourne’s CBD presents a distinct purchasing landscape, primarily comprising apartments where value is predominantly tied to improvements, rather than land,” HTW director Perron King said.

In South Australia, competition remains fierce in the sub-$750,000 price bracket.

“Purchasers are either pushing further out in the suburbs or compromising on allotment size and property condition to be closer to the CBD,” valuer Nick Smerdon said.

495 Grenfell Road, Banksia Park, SA, is listed for offers between $750,000 and $825,000

In Hobart and its surrounds, a budget of $750,000 can get an older-style house in established suburbs like Moonah, Glenorchy and Kingston, while that same price point can get a well-positioned unit or townhouse closer to the CBD.

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25 Lawson Street, Moonah, Tas is listed for $625,000+.

Managing sellers’ expectations is proving difficult in the ACT, where there is only four suburbs with median house values below $750,000.

“Darwin is Australia’s most affordable capital city, where buyers can purchase a good quality home for an affordable price,” the report says.

“With a median house price of $587,000 and median unit price of $386,000 (PropTrack), a lazy $750,000 can buy you a good quality home in one of Darwin’s most desirable suburbs.”

67 Rosella Crescent, Wulagi, NT, is listed for $700,000

While over in Western Australia, a budget of $750,000 could get you a unit in the city or a detached house further out.

For units, Albany, Bundaberg, Burnie/Devonport, Mildura, Mount Gambier, South West WA, Tamworth and Toowoomba are now at “peak of market”.

Declining markets include Alice Springs, Bathurst and Launceston (starting to decline), Melbourne (declining market) and Port Macquarie (approaching bottom of market).

Locations now at the ‘bottom of market’ include Ballina/Byron Bay, Coffs Harbour, Geelong, Illawarra, Lismore, Southern Highlands and Sydney.

There are seven locales at the ‘start of recovery’— Albury. Canberra, Central Coast, Hobart, Newcastle, Shepparton and Wodonga.

Nineteen unit suburbs are considered ‘rising markets’ - Adelaide, Adelaide Hills, Barossa Valley, Broome, Cairns, Darwin, Dubbo, Emerald, Esperance, Fraser Coast, Geraldton, Gladstone, Gold Coast, Kalgoorlie, Karratha, Mackay, Perth, Rockhampton, and Townsville.

Approaching their peak are Brisbane, Ipswich, Port Hedland, Sunshine Coast and Whitsunday.

Originally published as How to buy for under $750,000