What Can You Buy for Under $600,000 in Australia?

Is it possible to enter the Australian real estate market with $600k?

A budget of $600,000 may not stretch as far in Sydney as it would in cities like Perth or Adelaide. Consequently, property investors may need to gravitate towards smaller properties, often in the form of apartments situated outside the CBD.

The latest figures from CoreLogic show that Australia’s only capital city with a median dwelling value of less than $600,000 is Darwin. Sydney has the highest median dwelling value at $1,098,821, followed by Canberra at $830,875.

In terms of suburbs boasting an average housing price below $600,000, the latest CoreLogic data reveals a diverse landscape across various capital cities. Perth takes the lead as the city offering the widest range of suburbs experiencing the highest growth in value over the past 12 months, all with a median price of $600,000 or below. Brisbane follows closely behind, with Darwin, Adelaide and Hobart also offering options for budget-savvy investors.

The key to navigating the Australian real estate market with a $600,000 budget is to research and identify pockets of growth potential. The outer suburbs of major cities not only offer more affordable options, but future developments and infrastructure projects in these areas may drive up property values. In these regions, $600,000 may offer access to standalone homes or large townhouses, providing excellent value for money.

Types of Properties under 600k

The affordable middle

What the CoreLogic data doesn’t account for is the increasingly popular ‘middle option’: townhouses.

The latest Census data reveals that more Australians are choosing townhouse living; with townhouses accounting for 13% of resident homes in Australia, up from 9.9% in 2011.

Typically, townhouses provide a more affordable alternative to a detached house, with more indoor and outdoor space and privacy than an apartment, but without the cost and upkeep of a larger home on a big block. They also tend to be positioned in closer proximity to transport hubs, retail, and other amenities compared with new house & land developments.

As an example, in Brisbane, investors can currently purchase a brand-new 4-bedroom, 2.5-bathroom, 2-car space townhouse that is less than 20km from the Brisbane CBD for only $585,000!

In Greater Melbourne, Manningham-West Melbourne-Inner East commands a median of $1,424,066, whereas Banyule in Melbourne-North East remains below $600,000 despite a slight decline.

Affordable Cities Insights

According to the latest Hedonic Home Value Index insights from CoreLogic, here’s a breakdown of cities across Australia where you can find affordable properties under $600,000.

Things to Consider When Investing Under $600,000 in Australia:

Competition in the Market: With a budget of $600,000, you’ll likely face competition from other buyers, especially in the more affordable suburbs. Be prepared to act quickly when a suitable property becomes available. Engage a real estate agent to stay updated on new listings.

Location Matters: The old adage “location, location, location” holds true. While you might find affordable properties in certain areas, ensure they align with your lifestyle and investment goals. Research things like local amenities, crime rates, and future growth potential.

Transportation Accessibility: Properties located near public transportation are often in high demand and can offer a great investment opportunity. Look for suburbs with access to major roads, buses, trains, and upcoming infrastructure developments.

Property Condition: When investing under $600,000, it’s important to consider the condition of the property you’re looking at. Older homes or properties that require significant repairs or renovations may not be a wise investment, as they can eat into your budget and decrease potential returns.

Future Development Plans: Keep an eye out for future development plans in the area you’re considering. New infrastructure or commercial developments can have a positive impact on property values and rental demand in the long run.

Tips for Making a Smart Investment Decision:

Summary

The opportunity to enter the property investment market with a $600,000 budget is still within reach, but it requires strategic thinking and careful consideration. By researching thoroughly, looking beyond the numbers, and keeping a long-term perspective, you can make smart investment decisions that have the potential to provide real long-term wealth and financial security.

Ironfish’s experienced real estate investment strategists will ensure that your investments align with your goals and objectives.

Don’t let a limited budget hold you back from entering the property market. There are many opportunities to find hidden gems and build a solid investment portfolio.