Invest here: 44 suburbs you can afford on the average wage

Watch out Sydney: Almost $900k to buy a home in Brisbane

When factoring in the 30 per cent mortgage threshold and the 3 per cent APRA asks banks to factor in when assessing borrowers’ ability to repay loans, JLF Group has identified 44 affordable suburbs across the country for “mum and dad” investors.

John Fitzgerald of JLF Group and author of 7 Steps to Wealth.

---

“Brisbane, Perth, Adelaide and the outskirts of Melbourne show good affordability,” Mr Fitzgerald said.

“Affordability cushions the effects of property cycles.

“It also ensures that when you decide to sell your investment property, you know that anyone with a job will be able to buy it.”

In southeast Queensland, Mr Fitzgerald believes Ripley, South Ripley, and Deebing Heights — all in the Ipswich corridor — are prime for investment, with median house prices of about $700,000 and yield around 4 per cent.

“Ripley and Ripley South are our top picks,” he said. “Ripley’s population is tipped to grow substantially in the next decade and there is plenty of infrastructure being built there.

“It is a State Government Priority Development Area, with the state government announcing in August it would commit $21m to help unlock more land in the area, by providing money for road infrastructure.”

In Victoria, JLF Group has identified Tarneit is the best option for new homebuyers.

Mr Fitzgerald said the outer Melbourne suburb had a population growth forecast of 18 per cent and was conveniently located near the Western Freeway and Tarneit railway station.

This three-bedroom house at 3A Onyx Way, Tarneit, is on the market for between $540,000 and $560,000.

---

“It has about 1,500 job opportunities and for families has a school catchment with five schools and the main health service is Tarneit Family Medical Centre,” he said.

“The Melton suburbs of Fraser Rise and Rockbank are up there with the best areas for investors too. Each has freeway access, and a thriving job market and five schools between them. Rental yields in the suburbs we recommend are between 4 per cent and 4.4 per cent.”

In South Australia, Playford is an area to consider, with the suburb of Virginia the top pick, according to JLF Group.

There are two schools in the area as well as major transport routes, including the Northern Expressway connecting residents to Adelaide and the surrounding areas.

This four-bedroom house at 38 Hanorah Ave, Virginia, is on the market for between $679,000 and $739,000.

---

“Munno Para West is in the City of Playford in the northern suburbs of Adelaide,” Mr Fitzgerald said.

“It has an extremely affordable median house price. The area is tipped to grow substantially in the coming years.”

In New South Wales, it is still possible to buy an investment property in Liverpool for under $1m.

“Austral and West Hoxton are top of our list in NSW, each is expected to grow 8.5 per cent in the next decade and there are nine schools in each and access to Liverpool hospital,” Mr Fitzgerald said.

This four-bedroom house at 69 Boyd St, Austral, is on the market with a price guide of $1.3m.

---

“Further to this, we like The Hills district, which is home to Castle Hills, Kellyville, North Kellyville, Rouse Hill and Box Hill.”

In Western Australia, Wanneroo has the best investment potential, according to JLF Group.

Yanchep is the top pick, with a median house price of $635,000 and a 4.9 per cent yield.

“Yanchep is our top pick in the West, not only because it has a compounding population growth projection of 12.2 per cent over the next decade, but it also has had a new train line open this year and healthcare and educational infrastructure is good,” Mr Fitzgerald said.

This three-bedroom house at 38 Greenside Dr, Yanchep, is on the market for between $575,000 and $600,000.

---

“Eglinton and Alkimos, which are both in Wanneroo, each have a projected population growth of 10 per cent in the next 10 years and boast four employment clusters — Butler, Joondalup, Mindarie Marina and Perth city.”