The property market may be starting to cool but for savvy investors there are still plenty of opportunities to be found.

Suburb Help's quarterly $100k Investment Report has identified the top 20 investment locations with a lower barrier to entry.

The report analysed every suburb in Australia to find property markets suitable for investors with a deposit up to $100,000 ready to go.

The report excluded suburbs if they had:

  • A median price above $1 million
  • Owner-occupier share less than 65% or more than 90%
  • Renter share less than 10% or more than 35%
  • Vacancy rate more than 1.5%
  • Yields less than 3%
  • Median weekly rent that has increased by less  than 5% over the previous 12 months

This criteria excluded the vast majority of suburbs in Australia, leaving just a handful of carefully selected investment-grade suburbs which have been ranked from lowest median price to highest.

New South Wales took out the lion's share of suburbs (9), followed by the ACT (6), South Australia (2), Victoria (2), and Tasmania (1), with a good mix of regional and metro locations.

Suburb Help chief property strategist Veronica Morgan said the list is a good starting point for first time investors.

“It’s not easy to buy a property right now, for a couple of reasons. First, even though prices are declining in many parts of Australia, they’re still elevated following the recent boom. Second, investors’ borrowing power is declining with every Reserve Bank rate hike,” she said.

“So it’s good to know that if you find a lender prepared to accept a 10% deposit, you can still buy into a good investment location for a relatively modest price, provided you do your research.”

The cheapest median price on the list is $590,000, potentially making it possible for an investor to buy a property with a deposit of just $59,000.

Ms Morgan said every suburb that made the list was carefully selected.

“We wanted locations that were not only likely to record above-average capital growth over the long-term but would also provide a healthy cash return right now,” she said.

“That’s why we limited ourselves to locations that had low vacancy rates and reasonable yields.

“As a result, if you buy a quality property in one of these locations, you should find it relatively easy to secure a reliable tenant prepared to pay a good rent.”

Top 20 investment-grade suburbs under $1 million 

Rank State Suburb Postcode Type Median Price Deposit
1 VIC Langwarrin 3910 Unit $590,000 $59,000
2 NSW Charlestown 2290 Unit $620,000 $62,000
3 TAS Bellerive 7018 Unit $625,000 $62,500
4 SA Eden Hills 5050 House $760,000 $76,000
5 NSW Medowie 2318 House $775,000 $77,500
6 NSW Macquarie Hills 2285 House $786,000 $78,600
7 SA Pasadena 5042 House $787,000 $78,700
8 NSW Kahibah 2290 Unit $792,000 $79,200
9 ACT Ngunnawal 2913 House $801,000 $80,100
10 ACT Macgregor 2615 House $825,000 $82,500
11 ACT Holt 2615 House $832,000 $83,200
12 NSW Cardiff Heights 2285 House $840,000 $84,000
13 VIC Belgrave 3160 House $845,000 $84,500
14 NSW Currans Hill 2567 House $845,500 $84,550
15 NSW Narellan Vale 2567 House $875,000 $87,500
16 ACT Dunlop 2615 House $880,000 $88,000
17 ACT Bonner 2914 House $882,000 $88,200
18 NSW Fletcher 2287 House $896,000 $89,600
19 ACT Evatt 2617 House $935,000 $93,500
20 NSW Adamstown  Heights 2570 House $985,000 $98,500

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