But while some might seem like a bargain, experts warn that investors need to go in prepared if they’re going to turn any kind of decent profit.
“There must be some reason for demand to rise dramatically in the near future for the type of dwelling that you purchase, or there’s no point,” says property market analyst and researcher John Lindeman.
Margaret Lomas, who owns more than 30 investment properties, including in towns such as Nowra, Airlie Beach and Blackhead Beach, says investors should steer away from single-industry towns, which can potentially plummet if the economy goes bad.
She advises looking for towns where unemployment is low and the population is growing.
Here are seven that might be worth investigating further.
1. Ballarat, Victoria
While Lomas would usually prefer to spend her money in an outer suburb of Melbourne and Brisbane, she pinpoints Ballarat as a regional area that could work for investors.
She says workers can still commute to Melbourne from Ballarat, which will likely experience the ripple effect of growth once Melbourne becomes too expensive.
For under $400,000, you could potentially snap up this modern three-bedroom house – within strolling distance to Lake Wendouree.
31 Parbury Avenue, Ballarat VIC 3350. Photo: Domain
2. Bendigo, Victoria
Next door, another former gold rush town, Bendigo, also offers opportunity for investors.
This edgy two-bedroom apartment, in a historic brick building smack-bang in Bendigo’s CBD, has an advertised price range of $380,000-$400,000, with the agent noting it would be ideal for Airbnb.
4/43 Mitchell Street, Bendigo VIC 3550. Photo: Domain
3. Nambucca Heads, NSW
About 30 minutes drive south of Coffs Harbour, Nambucca Heads is one of the few coastal towns in the area with property under $400,000, says John Lindeman.
He says demand in the town should continue to climb due to increased tourism and demand from seachange retirees.
“Also the Pacific Highway’s being duplicated all the way from Newcastle up to the border … making these towns far more accessible,” says Lindeman. He says large numbers of construction workers are also paying top rental dollar to live there while the project is being completed.
For $395,000, you might find yourself the landlord of this four-bedroom home 200 metres from the beach.
43 Liston Street, Nambucca Heads NSW 2448. Photo: Domain
4. Ipswich, Queensland
If Brisbane’s getting too pricey, $400,000 goes a long way in Ipswich, deep in the heart of Pauline Hanson territory. It’s about 45 kilometres away from the big smoke.
The owners of this three-bedroom Queenslander, gunning for an immediate sale, are accepting offers of over $349,000.
21 Hooper Street, Ipswich QLD 4305. Photo: Domain
5. Penguin, Tasmania
With such a charming name, it might be difficult for investors to resist this small coastal town.
Lindeman predicts that property prices in Penguin — half an hour’s drive from Devonport airport — may jump in coming years as retirees shift from cities such as Melbourne.
Just $385,000 will get you this four-bedroom English Tudor-style home with sweeping views and nine car spaces.
32 South Road, Penguin TAS 7316. Photo: Domain
6. Broken Hill, NSW
If you’re seeking good rental returns, Broken Hill could be your spot, says Lindeman.
“Remote outback towns such as Broken Hill offer high rental yields (over 10 per cent) maintained by genuine rental demand. They provide good cash flow, but prices do not move much over time.”
For $385,000, you can grab this five bedroom home with an inground heated pool and a massive shed.
362 Oxide Street, Broken Hill NSW 2880. Photo: Domain
7. Bateau Bay, NSW
This Central Coast town, still within commuting distance to Sydney, is attractive for investors because of its affordability and amenities, says Lomas.
“The only compromise people make by living there is the commuting distance from work, which a lot of people these days are willing to put up with in exchange for getting a lot more bang for their buck on housing and raising kids in a less stressful environment,” she says.
This two-bedroom townhouse has a price range of $399,000-$430,000.
3/10 Richmond Close, Bateau Bay NSW 2261. Photo: Domain