With the average property price in many big cities exceeding $1 million, purchasing a home for less than $100,000 might seem laughable.
But you may be surprised to learn that there are properties on the market for less than half of that price, if you know where to look.
Property market analyst Anna Porter, principal of Suburbanite, scoured the country far and wide to uncover some of Australia’s cheapest homes.
She joined Your Money Live to reveal where you can still find properties with a price tag of $50,000 or less (along with a few caveats).
A shack in rural Tasmania
This ramshackle shack in Tasmania might need a bit of love, but with a price tag of just $50,000, who’s complaining?
The small house is located around 4.5 hours drive from Hobart and is surrounded by lush forest.
“It’s got some acreage there, but it clearly needs a lot of work. So I would definitely budget it at a little more than the $50,000 mark,” says Porter.
A renovation job in Broken Hill
This modest house in the historic NSW outback town of Broken Hill is in definite need of a renovation, but there’s plenty of potential.
While it’s listed for $49,000, the agent claims that a $5,000 fix up could get the property in good enough shape to draw $180 per week in rent.
“With a bit of negotiation, if you can get the $5,000 renovation into your $50,000 budget, that’s an 18 per cent gross rental return – that’s a pretty big return,” says Porter.
A beachside holiday home
This sleepy little property along Diamond Beach on the NSW mid-north coast appears too good to be true.
While it’s listed for between just $12,000 and $16,000, it comes with some major caveats.
Although the property is in good condition, it’s a pre-manufactured home (a mass-produced design) which Porter says the banks prefer not to lend on.
And the biggest caveat – it’s a resort timeshare, so it costs a further $170 per week ($9,000 a year) in membership fees.
“So, you get access to other types of locations and holiday homes and other things that you can do on timeshare… [but] there is often still lease fees for the land and things like that,” says Porter.
A retirement home in regional NSW
This small house in regional NSW is relocatable, which means the home was partly or wholly assembled before it was moved to the site.
In this case, the tenants own the home but not the land. So, similar to the timeshare, buyers will need to pay additional fees to lease the land space.
Of course, the biggest barrier is that you have to be over 55 years old to live here.
A car space in Sydney
For less than $50,000, the closest thing you can get to buying a property in Sydney is literally a car space.
However, Porter says these can make solid investments.
Ranging from around $40,000 to $150,000, they can deliver around a six to seven per cent return on investment plus yield, according to Porter, without the hassle of dealing with tenants.
And she says car spaces in some prime spots are seeing around four to five per cent annual growth in value.
“That’s not a bad little investment.”
A house in regional Queensland
This Queensland home is suitable for anyone that craves privacy.
Listed for $50,000, the house is located in an isolated Central West Queensland region around eight to nine hours from Brisbane.
“Some would say it’s liveable. When you look at the photos you can see it’s not falling down,” says Porter.
“To be actually able to move in and live in a property for less than $50,000, and if you’re happy to live eight to nine hours away from a capital city, this could be a great option for you.”
A unit in regional Western Australia
Once part of a boutique hotel outside of Perth, the owners of the property have been forced to sell the rooms following a failed business venture.
Around 90 minutes from Perth, there are 30 units listed for sale at $25,000 each.
Porter says it’s an example of what has been happening in small mining towns around Western Australia where there was an oversupply of properties.
“It’s still a nice township, but a little town outside of Perth can’t handle the supply chain of 30 units coming into the market, so that is definitely going to hold prices down.”
“Is it a good long-term investment? The jury’s still out on that,” Porter reckons.
Watch the full segment in the video above.