Canstar’s latest “Deposit Stars” report, in collaboration with Hotspotting, identified 150 suburbs where buyers can enter the property market with deposits as low as $50,000 or $100,000.
The report focuses on locations that offer a blend of houses and units, spanning across both metropolitan and regional areas in Australia.
The report identified these opportunities based on a detailed analysis using two loan-to-value ratios and three crucial metrics: property prices, rental yields, and the availability of infrastructure.
“When it comes to buying a home, your budget defines so much of what you can – or can’t – look at,” said Effie Zahos (pictured above left), Canstar’s money expert.
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Terry Ryder (pictured above right), managing director at Hotspotting, noted that a significant portion of these properties includes attached dwellings such as units and townhouses, which are becoming a popular choice for both downsizers and first-time buyers.
“Almost a third of the properties featured in the Deposit Stars report reflect the growing trend of buyers opting for the likes of units or townhouses,” Ryder said.
While the report helps prospective buyers narrow down their search, it also highlights other costs to consider, such as stamp duty, mortgage fees, and lenders mortgage insurance (LMI) for those with less than a 20% deposit.
Depending on various factors, including the size of your loan and the property type, LMI costs can vary.
For first-time buyers, there are ways to reduce or avoid LMI.
Programs like the First Home Guarantee scheme or using a guarantor could eliminate this added cost, offering relief to those working with a smaller deposit.
Buyers in certain professions, like medicine or law, might also be eligible for LMI waivers.
While housing in Australia’s capital cities tends to be more expensive than in regional areas, the Canstar report showed there are still plenty of opportunities for budget-conscious buyers.
Those with a $50,000 deposit can explore options like attached dwellings in major cities, which have become increasingly popular due to their affordability and proximity to urban amenities.
For those looking outside the capitals, regional areas offer even more potential, with strong market growth and lower prices. Whether buyers are considering a bustling capital or a quieter regional setting, Canstar’s “Deposit Stars” report helps identify where to start their search for a home.
To gain free access to the full Deposit Stars report and see the full list of budget-friendly suburbs, click here.
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