Where to buy property in a capital-city suburb with a $50,000 deposit
Buyers hoping to crack the property market with a $50,000 deposit: don’t give up. There are over 100 suburbs across Australia where buying with a 10 or 20 per cent deposit is still possible.
The latest Domain House Price Report shows a long list of over 100 affordable suburbs spread across most of the major capital cities where buyers with $50,000 in savings can use it as a 10 per cent deposit. For buyers hoping to avoid lenders mortgage insurance (LMI) and put down a 20 per cent deposit of $50,000, that list whittles down to just two capital-city suburbs.
Orelia in Perth is the most affordable capital-city suburb for a median-priced unit, where $42,000 covers a deposit of 20 per cent. It’s also possible to buy here with just $21,000, which equates to a 10 per cent deposit.
Second on the list is the Darwin suburb of Berrimah, where buyers can get in with a $50,850 deposit ( 20 per cent) or $25,425 ( 10 per cent ) on a median-priced house.
“It’s possible to get a three-bedroom unit or a house in Berrimah, like a smaller block,” with a $50,000 deposit, says real estate agent Akansh Batta of Raine & Horne Darwin.
However, he says this money doesn’t account for stamp duty, conveyancer fees and inspections.
Batta says Berrimah is a relatively new suburb in northern Darwin, and it has a limited number of local shops, but that doesn’t deter home owners because it’s quite close to the city.
“It’s very centrally located … very close to the golf course, and the highway as well,” he says.
Batta says many first-home buyers are going into the market there with 10 to 12 per cent deposits.
In Melbourne, there are several suburbs where buying a median-priced unit or a house with a 10 per cent deposit of $50,000 or less is possible.
In Albion, 14 kilometres west of the CBD, the median apartment price is $270,000, which means buyers can enter the market with a $27,000 deposit ( 10 per cent ).
For a house, buyers should look at Melton, 47 kilometres west of the CBD, where the median house price is $470,000 and a 10 per cent deposit would be $47,000.
Local agent Ivan Juricevich of Barry Plant Sunshine says there are plenty of apartment options in Albion for buyers with a $50,000 deposit.
“Within Albion, there’s a plethora of options, one, two, and some three-bedroom complexes, so it’s definitely achievable,” he says.
“The main thing that attracted me and most people is obviously its locality and proximity to major amenities in the CBD.
“And the main thing that we find that most buyers love is that it’s not a thoroughfare – you don’t need to travel through Albion to get anywhere. So it’s a bit more of a destination suburb and predominantly community-based.”
Juricevich has seen an influx of owner-occupiers entering the Albion market with 7 to 10 per cent deposits.
“We are seeing a lot of first-time owners coming into the area purely for the price point,” he says.
In Adelaide, a deposit of $33,750 (10 per cent) can buy a median-priced unit in the northern suburb of Salisbury.
Davoren Park is the cheapest place for those looking for a house. A 10 per cent deposit on a median-priced house is $39,325.
Davoren Park agent Tony Minopoulos of Ray White Craigmore says it is possible to buy a three-bedroom, one-bathroom, older-style duplexe with a $39,325 deposit.
“You do have to search, and they do come available, but you do have to be ready and available to purchase because the demand is very high,” he says.
“It’s very affordable for first-home buyers and investors right now.”
In Sydney, it’s not possible to find a house with a 10 per cent deposit of $50,000 (in some areas it’s possible with a 5 per cent deposit), but several western suburbs have apartments for those wanting to stay in the 10 per cent range.
In Kingswood – 52 kilometres from the CBD – a 10 per cent deposit on a median-priced unit is $35,750. For something a bit closer to town, a 10 per cent deposit on a median priced apartment in Harris Park – 19 kilometres from CBD and on a major train line – would be $45,250.
In Kingswood, potential buyers can find affordable older one or two-bedroom units for less than $400,000, says local agent Gizzelle Powell of RE/MAX Lifestyle Marketing. She says that, for newer apartments, the price will likely be between $500,000 and $550,000, which is still close to the $50,000 deposit budget.
Powell says the new Western Sydney Airport, Western Sydney University and new investment in the Nepean Hospital have made Kingswood a hot spot for investors and first-time home buyers with 10 per cent deposits.
“We call [Kingswood] the Golden Triangle,” she says. “You’ve got the train station, and then you’ve got the hospital, and then you got the university. You’re in close proximity to St Mary’s, Penrith, Jordan Springs, Mulgoa Rise and Glenmore Park.”
To stretch the dollar further, it might be worth expanding the home search regionally, where the list of suburbs buyers can enter with a $50,000 deposit grows to over 470.
Some are: Rosslea in Townsville, Queensland, where the median unit price is $225,000; West Tamworth in NSW, where the median house price is $340,000; and Churchill, Victoria, where the median house price is $347,500.
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