Affordable Suburbs with solid growth potential

Don’t freak out about the huge amounts of money many people have been forking out on property in recent times. There are still many affordable suburbs just waiting for investors to snap up a bargain.

Affordability is not just about paying the lowest amount possible. It’s also about getting an investment property that’s value for money and knowing you have the means to pay it off. On that note, Your Investment Property has teamed up with OnTheHouse.com.au to bring you suburbs which are not just affordable but also in a prime position for capital growth.

1. Medowie (NSW) – Houses

• At a median house price of $398,500, it’s significantly cheaper than its neighbours Salt Ash ($502,000) and Soldiers Point ($472,500).
• The high-income-earning demographic has a median weekly household income of $1,501, compared to the state median of $1,237.
• It’s close to the RAAF Base Williamtown, which employs approximately 3,500 people. Medowie is home to many of these workers.
• Newcastle is just 34km away and located within the tourist hotspot of Port Stephens.
• Medowie is desirable for families, partly due to its excellent primary schools and quiet and relaxed lifestyle. There is also a great golf course, which helps attract retirees to the suburb.
• There is solid demand: houses spend just 63 days on the market, on average, and the vacancy rate is low, at just 1.69%.

2. Bligh Park (NSW) – Houses

• The $478,500 median house price is significantly lower than that of neighbours Londonderry ($815,000) and Windsor Downs ($1,120,000).
• The relatively affluent demographic earns a $1,460 median household income per week, compared to the state median of $1,237.
• The Sydney CBD is accessible as the suburb is close to major roads such as the M7, Northern Road and Windsor Road. There are also regular buses to the train station at Windsor.
• Strong demand is shown by the fast turnover of properties: houses sell within 40 days of being listed. The auction clearance rate is a healthy 87.5% and the vacancy rate is low, at 1.23%.
• There is currently a shortage of supply on the market, with just 0.57% of all stock currently up for sale.
• The suburb is highly desirable for young families, thanks to its numerous parks and good schools.

3. Minchinbury (NSW) – Houses

• The $504,000 median house price is less than other nearby suburbs, such as Stanhope Gardens ($666,000) and The Ponds ($755,000).
• Relatively affluent demographic earns a $1,460 median household income per week, compared to the state median of $1,237.
• There is strong demand: properties sell on average within 34 days of being listed. Vacancies are practically non-existent at just 0.89%. There’s currently a low level of supply, with just 0.96% of properties in the suburb listed for sale.
• It is next to the sought-after amenities of Mt Druitt, which is becoming increasingly trendy, with more cafes and bars opening up. Rooty Hill also has a thriving commercial area.
• Strong population and infrastructure boom predicted over at least the next 20 years.

4. Alawa (NT) – Houses

• The $577,500 median house price is significantly lower than nearby Rapid Creek ($680,000) and Milner ($595,000).
• It is close to sought-after amenities, including the Royal Darwin Hospital and the NT’s biggest shopping complex, the Casuarina Shopping Centre.
• There is strong demand, as shown by the zero vacancy rate and low supply – just 0.82% of all stock in the suburb is currently on the market.
• Great education facilities are nearby, including Charles Darwin University and the Casuarina Senior College, which adds to housing demand and the suburb’s desirability.
• The Darwin CBD is just 12km away.

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5. Morayfield (Queensland) – Houses

• The median house price of $324,500 is less than nearby Banksia Beach ($465,000).
• Desirable lifestyle features are the nearby beaches, parks, various medical facilities, a range of schools and a QUT TAFE college.
• Property prices are starting to creep up, indicating that prices have bottomed out.
• The area has transformed in recent times from a farming suburb to a more modernised urban area – yet it still maintains a charming country feel.
• The vacancy rate is just 1.14%, suggesting that landlords won’t have to worry much about their cash flow being too impacted if their tenants leave.  

6. Ballarat Central (Vic) – Houses

• Median house price of $328,000 is less than that of nearby Ballarat ($350,000) and Lake Wendouree ($577,500).
• Ballarat Base Hospital on Sturt Street has gentrified much of the area, with medical rooms now in converted period houses.
• Healthy demand is growing, as shown by the relatively fast turnaround: on average, properties sell within 62 days of being listed. Supply appears tight, with just 0.31% of stock on the market.
• The market appears to have bottomed out and prices are starting to creep up.  

7. Tarneit (Vic) – Houses

•  The median house price of $387,500 is less than that of nearby Williams Landing ($480,000) and Point Cook ($455,000).
• The median household income is $1,563 per week.
• Infrastructure projects include the Regional Rail Link, which is under construction and due to be completed in April 2015. This includes a new railway station at Tarneit. The Tarneit Central Shopping Centre is also expected to start construction in 2015.
• Tarneit’s population is expected to increase to over 50,000 by 2026. At the 2011 census it had a population of 21,690.
• Prices have started to trend up, which means recovery is underway.