Why you shouldn’t buy a house in a poorer suburb in Australia



a sign on the side of a building: MailOnline logo


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Young Australians are being warned to avoid snapping up property in cheap suburbs as first-home buyer incentives are extended.

This month’s Budget offered a new round of the First Home Loan Deposit Scheme where property newcomers only need to stump up a five per cent deposit as taxpayers underwrite the rest of the 20 per cent deposit. 

Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy an investment property needed to be wary of poorer suburbs – even if they offered higher rental yields.

‘Cheap properties that command relatively high rents might sound enticing, but these tend to be located in poor capital growth suburbs or in lower socio-economic areas and you should be wary of the potential pitfalls,’ he said.



a house that has a sign on the side of a building: Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy an investment property needed to be wary of poorer suburbs - even if they offered higher rental yields. Pictured is a house at Mount Druitt in western Sydney


© Provided by Daily Mail
Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy

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