While first home buyers struggle to clamber onto the property ladder in our biggest cities due to extortionate market prices, there are parts of Australia that might interest those pushed to their financial limits.
For those willing to give up the glitz and glamour of state capitals such as Sydney and Melbourne, where the average house price is $850,000 and $650,000 respectively, heading inland can save prospective buyers over half a million dollars.
While the cheapest properties at the bottom of the market leave a lot to be desired, experts suggest they will make for a sound investment either short or long term.
And one of the cheapest areas of the lot appears to be NSW’s isolated town of Broken Hill, 1000km west of Sydney and 450km northeast of Adelaide.
Multiple properties have sold for $40,000 and has granted those living in larger cities fool-proof access onto the market, news.com.au reports.
“It’s a house so cheap it sells itself. You can have smashed avo and buy a house as well. It’s crazy isn’t it?” a local real estate agent told the publication about one two-bedroom property listed recently for $45,000.
One of the main reasons property prices are so low is the cheap cost of land in the area. However there are more obvious factors which drive the prices down and keeps the average house price around the $100,000 mark.
Limited transport, a lack of major retail chains and its sheer remoteness – Broken Hill is a town surrounded by desert – all play their factor in keeping the market cheap.
Broken Hill market a profitable investment for all, agent says
For those unwilling to tackle one of the many homes around the $50,000 mark due to their outdated interiors and minimal amenities, the town’s premium properties are substantially less than the cheapest in the big cities.
One quaint property listed on Domain boasts four bedrooms, extensive well kept grounds and a pool for just $420,000.
But rural living isn’t for everyone and local real estate agent Cliff Wren, of Broken Hill Real Estate, told news.com.au becoming a landlord in the area was just as profitable.
“If you were to purchase a property here, your mortgage repayments would be less than your rent — it’s the Australian dream,” he said.
He says the rental market is strong due to the mining industry and the workers it constantly brings to the area.
“We have clients who’ve bought two or three little houses, rented them out for five or six years, paid it off and then sold them and that’s their deposit for a house in Sydney, Melbourne or Canberra,” he added.
While Broken Hill may unofficially the cheapest town for property across the nation, one thrifty mother went one step further last year, building her own home from scratch for just $13,000.