Affordable Housing: How to Secure a Home with a $50K Deposit in Australia’s Rising Suburbs

Homebuyers with modest savings might be in luck, as a new report reveals that it’s still possible to purchase desirable properties in up-and-coming suburbs with just $50,000. According to the latest Canstar Deposit Star report, those with a $50,000 or $100,000 deposit can find promising investment opportunities and enjoy a convenient lifestyle in selected Australian suburbs.

The report, powered by Hotspotting data, highlights the top 150 suburbs where budget-conscious buyers can invest in both capital cities and regional areas. In Melbourne, the best options for those with smaller deposits are concentrated around major transport hubs in the city's middle and outer suburbs. Sydney’s most promising areas are in the southwest, Parramatta region, and a few spots in the inner west. For Brisbane, the report points to units in the inner city and suburbs in Ipswich, Moreton Bay, and Logan, especially those slated for infrastructure upgrades. Queensland's coast, from Rockhampton to the Gold Coast, also shows potential.

Terry Ryder from Hotspotting suggests that aspiring homeowners might find better value in units located in emerging suburbs rather than aiming for a house right away. He notes that high income is often considered a prerequisite for home ownership, but many buyers may achieve better capital growth with a unit rather than a house.

Ryder also advises that a smaller deposit, like 10 per cent, could be more strategic than waiting to save the traditional 20 per cent. While a 10 per cent deposit might mean paying lender’s mortgage insurance, it could be a worthwhile trade-off to enter a rising market sooner.

Money expert Effie Zahos described the report as a valuable resource for budget-conscious buyers, offering a practical guide for those who have a set deposit amount but need direction on where to start their property search.

Recent figures from SQM Research show a significant rise in property listings across major cities, which could ease competition for buyers. Sydney and Melbourne, in particular, have seen substantial increases in listings, marking the highest levels in years. Sydney's listings surged by 14.7 per cent in August, bringing the total to nearly 34,000 properties, while Melbourne’s listings rose by 12.2 per cent, reaching over 41,000. This surge suggests a shift towards a buyer’s market, offering more opportunities for those looking to purchase a home.