Invest here: 44 suburbs you can afford on the average wage
You don’t need to be wealthy to invest in property in these 44 locations across the country. See the list.
From Ripley on the outskirts of Brisbane to the coast of Perth and a booming Sydney satellite suburb, there are more than 40 locations nationwide investors on an average income can afford.
That’s according to investment advisor John Fitzgerald of JLF Group, who claims you don’t have to be “rich” to invest in property.
RELATED: Where you can invest for under $500k
“There is a misconception that every property investor in Australia is wealthy or a high-income earner; it’s just not true,” Mr Fitzgerald said.
“You don’t need to be rich to invest.
“Property prices at the affordable end of the market don’t crash. They go up, they flatline, and then they go up again.”
Australian Bureau of Statistics data shows the average Australian couple working in the private sector earns $191,000, while those working in the public sector earn a combined pre-tax income of $219,000.
MORE PROPERTY NEWS:
The unlikely regional hotspots luring city dwellers in droves
Watch out Sydney: Almost $900k to buy a home in Brisbane
When factoring in the 30 per cent mortgage threshold and the 3 per cent APRA asks banks to factor in when assessing borrowers’ ability to repay loans, JLF Group has identified 44 affordable suburbs across the country for “mum and dad” investors.
“Brisbane, Perth, Adelaide and the outskirts of Melbourne show good affordability,” Mr Fitzgerald said.
“Affordability cushions the effects of property cycles.
“It also ensures that when you decide to sell your investment property, you know that anyone with a job will be able to buy it.”
In southeast Queensland, Mr Fitzgerald believes Ripley, South Ripley, and Deebing Heights — all in the Ipswich corridor — are prime for investment, with median house prices of about $700,000 and yield around 4 per cent.
| AFFORDABLE INVESTMENT PICKS | |||
| SOUTHEAST QLD | |||
| Suburb | Property type | Median price | Rental yield |
| Ripley | House | 705,400 | 4.40% |
| South Ripley | House | $731,750 | 4.30% |
| Deebing Heights | House | $700,000 | 4.20% |
| Morayfield | House | $747,813 | 3.90% |
| Springfield Lakes | House | $750,000 | 4.20% |
| Holmview | House | $748,279 | 4.10% |
| Flagstone | House | $705,000 | 4.50% |
| Logan Reserve | House | $721,900 | 4.50% |
| Source: JLF Group | |||
“Ripley and Ripley South are our top picks,” he said. “Ripley’s population is tipped to grow substantially in the next decade and there is plenty of infrastructure being built there.
“It is a State Government Priority Development Area, with the state government announcing in August it would commit $21m to help unlock more land in the area, by providing money for road infrastructure.”
In Victoria, JLF Group has identified Tarneit is the best option for new homebuyers.
Mr Fitzgerald said the outer Melbourne suburb had a population growth forecast of 18 per cent and was conveniently located near the Western Freeway and Tarneit railway station.
“It has about 1,500 job opportunities and for families has a school catchment with five schools and the main health service is Tarneit Family Medical Centre,” he said.
“The Melton suburbs of Fraser Rise and Rockbank are up there with the best areas for investors too. Each has freeway access, and a thriving job market and five schools between them. Rental yields in the suburbs we recommend are between 4 per cent and 4.4 per cent.”
| AFFORDABLE INVESTMENT PICKS | |||
| VICTORIA | |||
| Suburb | Property type | Median price | Rental yield |
| Tarneit | House | $650,000 | 4.30% |
| Fraser Rise | House | $710,000 | 4.10% |
| Rockbank | House | $631,000 | 4.10% |
| Clyde North | House | $730,000 | 4.40% |
| Wyndham Vale | House | $587,000 | 4.20% |
| Werribee | House | $620,000 | 4.10% |
| Cobblebank | House | $635,000 | 4% |
| Diggers Rest | House | $655,000 | 4.30% |
| Mickleham | House | $680,000 | 4.20% |
| Source: JLF Group | |||
In South Australia, Playford is an area to consider, with the suburb of Virginia the top pick, according to JLF Group.
There are two schools in the area as well as major transport routes, including the Northern Expressway connecting residents to Adelaide and the surrounding areas.
“Munno Para West is in the City of Playford in the northern suburbs of Adelaide,” Mr Fitzgerald said.
“It has an extremely affordable median house price. The area is tipped to grow substantially in the coming years.”
| AFFORDABLE INVESTMENT PICKS | |||
| SOUTH AUSTRALIA | |||
| Suburb | Property type | Median price | Rental yield |
| Virginia | House | $790,000 | 4.20% |
| Munno Para | House | $528,000 | 5.10% |
| Aldinga Beach | House | $710,000 | 4.10% |
| Lewiston | House | $810,000 | 4.50% |
| Mount Barker | House | $671,500 | 4.40% |
| Evanston | House | $508.50 | 5.20% |
| Hayborough | House | $615,000 | 4.20% |
| Mawson | House | $750,000 | 4.20% |
| Murray Bridge | House | $455,000 | 5.20% |
| Source: JLF Group | |||
In New South Wales, it is still possible to buy an investment property in Liverpool for under $1m.
“Austral and West Hoxton are top of our list in NSW, each is expected to grow 8.5 per cent in the next decade and there are nine schools in each and access to Liverpool hospital,” Mr Fitzgerald said.
“Further to this, we like The Hills district, which is home to Castle Hills, Kellyville, North Kellyville, Rouse Hill and Box Hill.”
| AFFORDABLE INVESTMENT PICKS | |||
| NSW | |||
| Suburb | Property type | Median price | Rental yield |
| Austral | House | $933,500 | 4% |
| West Hoxton | House | $1.245m | 4% |
| Castle Hill | House | $2.35m | 3.80% |
| Kellyville | House | $1.915m | 3.80% |
| North Kellyville | House | $1.7m | 3.80% |
| Leppington | House | $1.155m | 3.80% |
| Oran Park | House | $1.091m | 3.70% |
| Rouse Hill | House | $1.455m | 3.80% |
| Box Hill | House | $1.66m | 3.80% |
| Source: JLF Group | |||
In Western Australia, Wanneroo has the best investment potential, according to JLF Group.
Yanchep is the top pick, with a median house price of $635,000 and a 4.9 per cent yield.
“Yanchep is our top pick in the West, not only because it has a compounding population growth projection of 12.2 per cent over the next decade, but it also has had a new train line open this year and healthcare and educational infrastructure is good,” Mr Fitzgerald said.
“Eglinton and Alkimos, which are both in Wanneroo, each have a projected population growth of 10 per cent in the next 10 years and boast four employment clusters — Butler, Joondalup, Mindarie Marina and Perth city.”
| AFFORDABLE INVESTMENT PICKS | |||
| WEST AUSTRALIA | |||
| Suburb | Property type | Median price | Rental yield |
| Yanchep | House | $635,000 | 4.90% |
| Eglinton | House | $647,500 | 5% |
| Alkimos | House | $642,000 | 5.20% |
| Ellenbrook | House | $630,000 | 5.60% |
| Baldivis | House | $651,000 | 5.10% |
| Byford | House | $650,000 | 5.40% |
| Bertram | House | $620,000 | 5.10% |
| Forrestfield | House | $650,000 | 5.10% |
| Lakelands | House | $630,000 | 5.20% |
| Source: JLF Group | |||
Originally published as Invest here: 44 suburbs you can afford on the average wage
Secret property markets still booming
Much of Australia has entered a property correction phase, except for these areas that just couldn’t stop growing over the past 12 months.
‘At risk’: Big thing baby boomers must avoid
Baby boomers wield an insane amount of wealth but there is one thing they must not spend big on.
Major update: Aussies’ price-freeze shock
Aussies are finally breathing a sigh of relief after new data has shown a major freeze in an area no one saw coming.