Investors who are expanding their portfolios this year and are planning to do so with lower budgets should consider one of the 20 suburbs identified by Eventus Financial.

The list includes suburbs where three-bedroom houses have a median of below $1m, making the 10% home loan deposit less than $100,000.

Only house markets are chosen, as freestanding houses are likely to give investors better long-term capital gains than units.

NSW dominated the list with eight suburbs, followed by Queensland with five and Victoria with four.

On top of the list is New South Wales’ Safety Beach, where a three-bedroom house would only require a $76,000 10% deposit. This suburb has a healthy yield at 4.1%.

Victoria’s Tyabb also made it to the list — houses in this suburb can be purchased with a minimum deposit of $71,500.

Eventus Financial CEO Alex Veljancevsk said these suburbs give investors a range of options that would not put pressure on their pockets.

“If you’re willing to be open-minded about your loan-to-value ratio and location, you can definitely buy a good investment property with a $100,000 deposit,” he said.

However, Mr Veljancevsk noted that investors with less deposits of less than 20% of the property’s value will have to pay for lender’s mortgage insurance (LMI), which could around $20,000 in the total housing costs.

“If paying LMI were to allow you to enter the market a couple of years ahead of schedule, it might seem like a bargain if property prices were to increase, say, $50,000 in that time,” he said.

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Photo by @thomasdeluze on Unsplash.