Where first-home buyers could buy with a $40k deposit
Despite rising prices, new analysis from PropTrack shows there are still opportunities for first-home buyers to get on the property ladder – even with a small deposit.
PropTrack has identified 111 markets across Australia where prices are not only growing strongly but where buyers using the First Home Guarantee can purchase a property with less than $40,000 upfront.
Eligible buyers can use the scheme to purchase with just a 5% deposit and avoid paying lenders mortgage insurance (LMI). All 111 markets have median prices below $800,000 for either houses or units, which means a 5% deposit equates to under $40,000.
Interestingly, these aren’t stagnant or overlooked locations. Each of the 111 markets has grown by at least 20% over the past year – showing that affordability and growth potential can go hand in hand.
Western Australia leads the way with 50 markets, followed by 34 in Queensland, 20 in South Australia, five in the Northern Territory, and one each in New South Wales and Tasmania.
PropTrack Senior Economist Eleanor Creagh said market momentum was expected to remain strong. “The October expansion of the Home Guarantee Scheme and removal of income caps will pull forward some first-home buyer demand by lowering the deposit hurdle,” she said.
“With enquiries per listing at a three-year high and search activity on realestate.com.au the strongest since late 2021, it’s clear more buyers are active.”
Top 10 house markets
|
Suburb |
State |
Median house price |
5% deposit |
12-month price growth |
|
Berrimah |
NT |
$355,000 |
$17,750 |
42% |
|
Elizabeth North |
SA |
$515,000 |
$25,750 |
23% |
|
Elizabeth Grove |
SA |
$523,500 |
$26,175 |
25% |
|
Toogoolawah |
QLD |
$530,000 |
$26,500 |
29% |
|
Davoren Park |
SA |
$541,750 |
$27,088 |
20% |
|
Medina |
WA |
$545,000 |
$27,250 |
21% |
|
Elizabeth Downs |
SA |
$550,000 |
$27,500 |
22% |
|
Smithfield Plains |
SA |
$551,500 |
$27,575 |
20% |
|
Calista |
WA |
$580,000 |
$29,000 |
21% |
|
Evanston |
SA |
$600,000 |
$30,000 |
22% |
Source: PropTrack
Top 10 apartment markets
|
Suburb |
State |
Median sale price |
5% deposit |
12-month price growth |
|
Orelia |
WA |
$320,000 |
$16,000 |
32% |
|
Bakewell |
NT |
$360,000 |
$18,000 |
26% |
|
Rosebery |
NT |
$405,000 |
$20,250 |
25% |
|
Logan Central |
QLD |
$405,000 |
$20,250 |
20% |
|
Woodridge |
QLD |
$425,000 |
$21,250 |
25% |
|
Salisbury |
SA |
$440,000 |
$22,000 |
26% |
|
Shoalwater |
WA |
$442,000 |
$22,100 |
26% |
|
Bayswater |
WA |
$450,000 |
$22,500 |
21% |
|
Brooklyn Park |
SA |
$453,000 |
$22,650 |
27% |
|
Caboolture |
QLD |
$460,000 |
$23,000 |
22% |
Source: PropTrack
How the First Home Guarantee works
The First Home Guarantee is a federal government initiative that helps eligible buyers purchase their first home sooner. Participants can buy a property with a deposit as low as 5%, while the government acts as a guarantor for up to 15% of the property’s value. This allows buyers to avoid paying LMI – a cost that can otherwise add thousands of dollars to a loan.
To qualify, buyers must:
- Be Australian citizens or permanent residents.
- Intend to live in the property.
- Meet property price thresholds set by the scheme.
Reach out if you’re a first-home buyer wondering whether you qualify for the First Home Guarantee.