You’d be forgiven for thinking the days of snapping up an affordable investment property are long gone.
However, Aussies looking to make a sea change or tree change can still find somewhere desirable on a budget – if they know where to look.
While the usual coastal getaways for city slickers – think Byron Bay, Noosa and Bowral – may be out of reach for the average buyer, there are still ‘hidden gem’ beach towns where family homes won’t break the bank.
And there is even better value for those who head inland, including some scenic cities a reasonable drive from the beach.
Before hearing from our real estate expert, here are the key numbers to consider when buying a home in Australia:
Someone on an average, full-time salary of $100,017 with a 20 per cent deposit is able to buy a house worth up to $650,110. This is slightly below regional Australia’s median house price of $654,849, based on CoreLogic data.
Regional towns on both sides of Australia have median house prices well below that, meaning an investment isn’t just a pipe dream – it’s actually quite achievable.
And as for the coastal-versus-inland debate, it’s not always wise to head straight to the ocean, says Simon Pressley, managing director of buyer’s agency Propertyology.
You’d be forgiven for thinking the days of snapping up an affordable investment property are long gone. However, Aussies looking to make a sea change or tree change can still find somewhere desirable on a budget – if they know where to look (pictured is Armidale, NSW)
And as for the coastal-versus-inland debate, it’s not always wise to head straight to the ocean, says Simon Pressley (pictured), managing director of buyer’s agency Propertyology
Mr Pressley points out that inland cities often have stronger long-term prospects for capital growth, especially if they have a vibrant major employer.
‘If you’re looking at rate of growth in percentage terms, there’s lots of coastal locations that, over the last 20 years, have had significantly lower average annual growth rate than a variety of inland locations,’ Mr Pressley told Daily Mail Australia.
‘I don’t want to be quoted misleading people to suggest that water’s got something to do with property prices. They might be pleasantly surprised.’
Mr Pressley says the performance of a local economy is often a bigger factor than population growth when it comes to capital growth because people move for their job.
‘What we do know is, from facts and figures, that population growth has a very, very, very small influence on capital growth rates of house prices,’ he said. ‘This has always been the case.
‘The whole world thinks the opposite because logically that makes sense. It’s economic growth, and always has been.’
Toowoomba, known as the Garden City, is Australia’s biggest inland city after Canberra – and it’s only a 90-minute drive from Brisbane
Toowoomba
- Median house price: $591,433
- Nearest capital city: Brisbane (125km away)
- Best known for… being Australia’s biggest inland city that isn’t a capital
Toowoomba is Australia’s biggest inland city after Canberra – and it’s only a 90-minute drive from Brisbane.
The ‘Garden City’ on the edge of the Lockyer Valley – Australia’s root vegetable capital – has an affordable median house price of $591,433, following a 12 per cent increase during the past year.
Australia’s 16th largest city, with 173,204 people, is also home to a series of private schools, catering to farming families who enrol their children as boarders. It also has the University of Southern Queensland.
‘Toowoomba is affectionately referred to as the Garden City – it’s very, very pretty,’ Mr Pressley said.
‘It does have a very robust economy; the infrastructure in Toowoomba is as good as anywhere else – but the cost of housing is half the price.
‘Education is big: it’s got a couple of major universities there and it’s very popular for private schools.’
The median house price in Hervey Bay, a popular destination for retirees, is still affordable at $602,884, following a 7.5 per cent annual increase
Those after surf beaches also have choices near Bundaberg, an hour’s drive north, with Burnett Heads (pictured) having a mid-point house price of $623,158
Hervey Bay
- Median house price: $626,025
- Nearest capital city: Brisbane (287km away)
- Best known for… its humpback whales and being near K’gari
Hervey Bay, north of Brisbane, is a popular destination for retirees and its best known as the area where humpback whales raise their young between July and October.
The median house price in the city of 63,500 people is still affordable at $626,025, following an 11.5 per cent annual increase.
Mr Pressley said the good value was a magnet for the town near K’gari, previously known as Fraser Island.
‘Hervey Bay has been one of the most popular locations for retirees in all of Australia for decades,’ he said.
‘It’s not the beach that’s dragging them there. While that’s certainly not unattractive, what it has got going for it is very, very affordable housing.’
Hervey Bay is significantly cheaper than the Sunshine Coast, where houses in Noosa typically cost $2million and are in the $1million zone in Caloundra.
Those after surf beaches also have choices near Bundaberg, an hour’s drive north, with Burnett Heads having a mid-point house price of $623,268.
The northern NSW city of Armidale is particularly affordable, with a median house price of $484,838
Armidale
- Median house price: $456,541
- Nearest capital city: Brisbane (455km away)
- Best known for… its young median age of 36, which comes from being a university city
The northern NSW city of Armidale is between Sydney and Brisbane on the western side of the Great Dividing Range.
The picturesque garden city with a surprisingly young median age of just 36 is also particularly affordable, with a median house price of $456,541.
Armidale is also home to the University of New England and the Australian Pesticides and Veterinary Medicines Authority.
‘Armidale is officially Australia’s education capital,’ Mr Pressley said.
‘As a percentage of their total workforce, there are more jobs in the education sector in Armidale than even all the capital cities.’
The city on the New England Highway is significantly cheaper than anywhere on the mid-north coast, including Nambucca Heads which has a median price of $623,175.
For those looking for somewhere to live as an owner-occupier, rather than as a landlord, Bendigo, north-west of Melbourne, has an affordable median house price of $569,863
Bendigo
- Median house price: $550,901
- Nearest capital city: Melbourne (153km away)
- Best known for… being home to regional Victoria’s largest hospital
Mr Pressley urges investors to avoid Victoria, arguing its economy is a basket case, with investors now liable for an annual $975 land tax to cover the cost of Covid lockdowns.
‘If we’re talking about investors, I can’t emphasise this strongly enough: for anyone who makes intelligent decisions, do not consider anywhere in Victoria because of the economy,’ he said.
‘Every decision that’s been made in that state in the last five years has put it in the mess that’s it’s in now.’
But for those looking for somewhere to live as an owner-occupier, rather than as a landlord, Bendigo, north-west of Melbourne, has an affordable median house price of $550,901.
The city of more than 168,000 people, established during the 1850s gold rush, is also home to Bendigo Hospital, the biggest healthcare centre in regional Victoria.
‘It’s still to this day the best hospital in regional Australia,’ Mr Pressley said.
‘It’s as good as anything you’d get in Sydney, Melbourne or Brisbane.’
Hospitals are also the biggest employer in Bendigo.
Launceston is Australia’s fourth oldest city, after Sydney, Newcastle and Hobart, and is known for its old buildings and absence of skyscrapers
Launceston
- Affordable suburbs with prices under $500,000
- Nearest capital city: Hobart (200km away)
- Known for being…. Australia’s fourth oldest city
Tasmania’s second biggest city in the state’s north is the administrative centre for a region with strong industries including seafood, dairy and wine.
‘Whether it’s seafood, whether it’s dairy, there are wineries in Launceston that have won international awards,’ he said.
The centre of Launceston has a median house price of $746,061, but nearby suburbs are cheaper, with Invermay, on the other side of the North Esk River, having a much more affordable mid-point of $479,428.
Launceston is Australia’s fourth oldest city, after Sydney, Newcastle and Hobart, and is known for its old buildings and absence of skyscrapers.
‘It’s one of the prettiest places in Australia by a country mile,’ Mr Pressley said.
‘It’s just so unspoiled. You go to a place like Launceston and soon realise it’s a very attractive place.
‘And not being on the coast is, I think, an asset because it gets quite windy in Tasmania.’
St Helens, a two-hour drive north west of Launceston, has a median house price of $541,451, making it much cheaper than Hobart’s $692,504 mid-point – but it’s a long way from good healthcare.
Yeppoon, north-east of Rockhampton in central Queensland, has a median house price of $678,388
Yeppoon’s house prices have risen by 13.2 per cent during the past year, with spot coal prices recovering from low levels in 2024
Yeppoon
- Affordable coastal suburbs for $600,000
- Nearest capital city: Brisbane (673km away)
- Prices are double that of nearby, coal-dependent Rockhampton
The beachside town of Yeppoon, north-east of Rockhampton in central Queensland, has a median house price of $683,373. A short drive away is Emu Park, also on the beach, which is cheaper at $606,932.
Yeppoon’s fortunes are tied to coal prices, with locals often employed 40 minutes’ drive away in Rockhampton.
‘The performance of Yeppoon’s property market will always be dictated by the performance of Rockhampton’s economy,’ Mr Pressley said.
‘People who have an above-average income and live in Rockhampton are more likely to live in Yeppoon than in metropolitan Rockhampton because it’s nicer in Yeppoon.’
Yeppoon house prices have risen by 11.6 per cent during the past year with spot coal prices recovering from low levels in 2024.
‘For as long as mining continues to go strong, places like Rockhampton, their property markets will do a lot better than other parts of Australia,’ he said.
Rockhampton’s median house price is still very affordable at $305,616, despite prices in surrounding suburbs soaring by more than 20 per cent in a year.
Mandurah, south of Perth, is still affordable, having a median house price of $531,282, even after a whopping 23.7 per cent surge in a year
Mandurah
- Median house price: $541,242
- Nearest capital city: Perth (71km away)
- Known for being… Western Australia’s largest regional centre
The coastal town of Mandurah, south of Perth, is still affordable, having a median house price of $541,242, even after a whopping 24 per cent increase in a year.
Like the rest of Western Australia, the fortunes of the states largest regional centre are tied to the price of iron ore, the commodity used to make steel.
Perth, and nearby satellite cities, have benefitted from interstate migration, even as iron ore prices have plunged following China’s property market collapse.
‘It’s certainly done well over the last five years for the same reason Perth and everywhere else in Western Australia has done well: the mining industry,’ Mr Pressley said.
The Hunter Valley offers the best value within a two-hour drive from Sydney with Maitland having good value houses
Maitland
- Median house price: $587,271
- Nearest capital city: Sydney (175km away)
- Known for being… the birthplace of actress Ruth Cracknell
The Hunter Valley offers the best value within a two-hour drive from Sydney.
Maitland on the Hunter River is also a 45 minute from the middle of beachside Newcastle, the home of the world’s largest coal export port.
Its median house price of $587,271 is affordable for average-income earners in a region known for its wineries and coal mines.
The Hunter’s biggest centre has good transport connections, being close to the New England Highway and the M1 motorway to Sydney.
Maitland also has an established train station that first opened in 1880 and was the birth place of actress Ruth Cracknell, best known for playing Maggie Beare in the ABC TV comedy Mother and Son during the 1980s and early 1990s.
In two decades, Maitland’s population has soared by 68 per cent, growing to 90,226 from 53,391, based on Census data.
When combined with Newcastle, it’s Australia’s seventh largest city.
‘It’s one of Australia’s biggest regional centres, it’s a big city of substance,’ Mr Pressley said.
‘It’s got all the essential infrastructure that a capital city’s got perhaps with the exception of an elite sports stadium.’
The city’s property market has continued to grow despite the push to phase out coal.
‘Maitland is not a one-industry coal town,’ he said.
Albury, on the NSW side of the border, has an affordable median house price of $669,779
Albury-Wodonga
- Median house price: $551,286 at Wodonga
- Nearest capital city: Melbourne (325km away)
- Cites on NSW-Victorian border linked to fruit, vegetable distribution
Albury-Wodonga straddle both sides of the Murray River separating New South Wales from Victoria.
‘It’s arguably Australia’s most underrated city,’ Mr Pressley said.
‘Albury-Wodonga – technically it’s two towns with a river running down the middle but if you’re a resident, it’s the one big city.’
These cities also offer good value for money and are a three-hour drive to Melbourne.
Albury, on the NSW side of the border, has an affordable median house price of $669,779 but neighbouring North Albury is much cheaper at $415,489.
On the Victorian side of the river, Wodonga has a mid-point house price of $551,286, following a 5.4 per cent increase during the past year.
The twin cities are also on the Hume Highway, and are in close proximity to Sydney, Canberra and Melbourne, making them the ideal location for fruit and vegetable distribution centres.
‘It’s got lots and lots of businesses – just massive warehouses, picture truckloads of packaged goods just sitting on pallets,’ he said.
These cities are also along the route of the Inland Rail, a freight connection under construction that will connect Melbourne with Brisbane.
‘Albury-Wodonga plays one of the most important roles of any city in Australia – it’s because of where it’s positioned,’ Mr Pressley said.
‘It’s not that far from Canberra, it’s not that far from Melbourne, it’s not that far from Sydney so it’s smack-bang in the middle of that triangle.’
The tropical far north Queensland city of Cairns is best known as the gateway to the Great Barrier Reef and it has affordable, old houses with character near the water (pictured is a house at Parramatta Park)
Cairns
- Median house prices in low $600,000 range
- Nearest capital city: 1,699km from Brisbane
- Known for being… the gateway to the Great Barrier Reef and being near Daintree Rainforest
The tropical far north Queensland city of Cairns is best known as the gateway to the Great Barrier Reef.
The picturesque city surrounded by mountains is also surprisingly affordable, making it a popular place for those seeking a lifestyle change.
It is also Australia’s 14th biggest city with a population of more than 250,000 people.
Cairns North on the harbour has a median house price of $624,408 while nearby Parramatta Park is even cheaper at $559,550, with both suburbs within walking distance of the city centre.
Prices have also climbed during the past year by 8.3 per cent and 11.7 per cent, respectively.
The biggest city in an area best known for its sugarcane plantations is also within driving distance of Port Douglas and the World Heritage-listed Daintree Rainforest, which is home to the endangered cassowary.
Cairns also has a naval base but it popular too as a conference destination for those flying to and from Asia.
‘Cairns’s proximity to Asia, it makes the position exceptionally well for all sorts of businesses, it’s not just about tourism,’ Mr Pressley said.
Goolwa, an historic town on the mouth of the Murray River, is just an hour’s drive from Adelaide
Goolwa
- Median house price: $625,792
- Nearest capital city: Adelaide (83km away)
- Best known for… being featured in the 1976 film Storm Boy
Goolwa, an historic town on the mouth of the Murray River, is a one-hour drive from Adelaide and is known for featuring in the 1976 film Storm Boy about a lonely kid who developed a friendship with a pelican, Mr Percival.
The coastal area near beaches is also still affordable having a median house price of $625,792, following a 10 per cent surge during the past year.
But it’s still significantly cheaper than greater Adelaide’s $856,856 mid-point, after an annual increase of 14.4 per cent.
Goolwa is also near the seaside town or Victor Harbour, which has a slighter more expensive median house price of $678,177.
Both these places on the coast are much cheaper than equivalent beachside towns a similar distance from Sydney or Brisbane.
‘Goolwa and Victor Harbour are extremely popular for residents of Adelaide when they go on holidays,’ he said.
‘It’s great for fishing and all sorts of watersports, there’s so many wineries in and around there.
‘Goolwa, because it’s further out, it’s going to be more popular to retirees or a mature couple who have got work-from-home jobs.’
Canberra, known as Australia’s bush capital with the feel of a regional centre, still has some surprisingly affordable real estate with a backyard
Canberra
- Suburbs still have median house, townhouse prices in low $600,000 range
- Australia’s national capital is home to Parliament House, High Court
- Canberra has Australia’s highest average, full-time salary of $110,578
Canberra, known as Australia’s bush capital with the feel of a regional centre, still has some surprisingly affordable real estate with a backyard.
Its median house price of $996,684 is unaffordable for an average-income earner but there are outer suburbs that still have mid-point prices in the low $600,000 range, offering a home with a backyard.
The Australian Capital Territory, the home of well-paid federal public servants, also has Australia’s highest, average, full-time salary of $110,578, which is 10.6 per cent higher than the national average pay.
‘Canberra’s the sort of place that doesn’t necessarily attract someone to it, it’s more like someone’s got a job somewhere and to take advantage of a promotion, they’ve been taken to Canberra,’ Mr Pressley said.
This means someone in the public service can typically have a career but without the mortgage and commuting stress of a big city like Sydney, Melbourne or Brisbane in a city that is home to Parliament House, the High Court, the National Gallery of Australia and Questacon.
Greenway, on Lake Tuggeranong, is one of Canberra’s most affordable suburb with a mid-point house price of $603,796, with this figure also including townhouses.
How buying regional compares to buying in a city
An individual buying in an affordable regional town would be borrowing far less for their home than the typical Australian.
The average loan in August 2024 was $636,208, which would buy a $795,260 home with a 20 per cent mortgage deposit.
The typical new mortgage would not buy the mid-point house in Adelaide or Perth, which now cost more than $800,000.
Nor would it buy Melbourne’s median-priced house worth $929,762, despite prices falling in 2024.
Sydney, with a mid-point house price of $1.5million, is beyond the reach of anyone unless than earn more than $226,000 a year – making them among the top 2.3 per cent of income earners.
Why WFH is supercharging regional Australia
Work-from-home is regarded as more than a fad, meaning regional markets still have growth prospects, even if some bosses are demanding staff return to the city office.
‘Anyone who thinks that WFH is just a Covid fad that will go away, that’s like saying that when Facebook came out in 2005 – it’s just a fad or will disappear in 12 months’ time,’ Mr Pressley said.
‘That’s just foolish to think like that. That’s just delusional.’
***
Read more at DailyMail.co.uk