Where to Buy Property in Australia in 2025: $500K & $1M Budget Breakdown

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

If you’ve been thinking about dipping your toes into the Australian property market but feel overwhelmed by choice, numbers, or fear of making a mistake, you’re not alone. In this episode of Get Rich, Molly Benjamin sits down with Arjun Paliwal from InvestorKit to unpack where he would buy property in 2025 based on two common borrowing capacities: $500K and $1M.

This episode is designed to help first-time investors navigate the property landscape confidently, understand current market trends, and avoid the most common mistakes that can hold people back. Whether you're saving for your first property or ready to take the next step, you'll walk away with actionable property investment tips and inspiration from real success stories.

Where Arjun Would Buy with $500K

With a $500,000 borrowing capacity, options are tighter than they once were, but they’re definitely still out there. Arjun highlights regional areas as some of the best investment opportunities in 2025. Cities like Mildura, Wodonga, and Albury in regional Victoria and New South Wales are showing strong rental yields and steady capital growth. While the homes may be a bit older and in need of minor cosmetic updates, they offer solid long-term potential and an accessible entry point into real estate.

Northern Adelaide also presents opportunity, especially in gentrifying suburbs like Elizabeth. If you’re open to some light renovations, this can be a great way to add value early. Meanwhile, towns in North Queensland like Townsville, Rockhampton and Gladstone, are worth considering. These areas offer healthy rental yields and are supported by growing local economies.

What to Buy with a $1M Budget

At the $1 million mark, your property search opens up considerably. Arjun points to Melbourne as one of the most exciting markets to watch. Although some parts are still recovering, there are signs of strong momentum, and he recently purchased a property there himself for just over $940,000.

Other locations seeing renewed interest include Newcastle and the Central Coast in New South Wales. These areas combine coastal lifestyle appeal with growth potential, making them attractive choices for long-term financial growth. With this kind of budget, buyers can afford freestanding homes in well-established suburbs or newer builds in growth corridors.

The Biggest Mistakes First-Time Investors Make

Arjun shares some of the most common property mistakes he sees from new investors. One of the biggest is becoming what he calls an “accidental investor.” This happens when someone buys a home to live in and later turns it into an investment without doing the due diligence to check if it’s actually a good investment-grade asset.

Another issue is “backyard bias”, only considering areas you’re familiar with rather than where the best growth opportunities are. And finally, many first-time investors choose the wrong type of property, such as a studio apartment, when houses have historically delivered better returns. These missteps can hold people back from building a high-performing portfolio.

Getting Over the Mental Block: A Framework for Action

Many would-be investors know they want to get started but feel stuck due to mental blocks or fear of making the wrong move. Arjun recommends starting with a simple five-step framework to know whether you’re ready to invest. First, make sure you have a 10% deposit saved, plus an additional 7% to cover buying costs like stamp duty and legal fees. Next, check that you’ll still have $20,000–$25,000 in savings after settlement as a financial buffer.

It’s also important to be saving consistently ideally between $1,500 and $2,500 per month after expenses as this helps with managing cash flow, especially in a higher interest rate environment. From there, confirm your borrowing capacity and build a team around you, buyer’s agent, mortgage broker, solicitor who can help guide you through the process with confidence.

A Real Success Story: From One Property to a Million in Equity

To show what’s possible, Arjun shares the story of Dani, a friend from his days working at CBA. During the COVID lockdowns, Dani purchased her first investment property in Brisbane for just over $500K. Fast forward to today, and that property alone has nearly doubled in value. She’s since used the equity from that purchase to buy three more properties across Tamworth, Adelaide, and Rockhampton. In just five years, she’s built a portfolio worth over $1 million in equity, proof of what’s possible with the right strategy and support.

There are always reasons to wait—interest rates, market uncertainty, life busyness, but waiting often leads to inaction. As Molly puts it, if you don’t start now, you’ll likely still be in the same place a few years from now. Getting started in the Australian property market doesn’t require perfection—it requires a plan. With the right investment opportunities, a clear strategy, and a supportive team, financial growth through real estate is within reach.

Want to Learn More?

Listen to the full episode to hear all of Arjun’s expert insights and don’t forget to register for the Online Wealth Summit on August 29th, it’s free and packed with financial education for women at every stage of their journey.

Plus, a huge shoutout to our sponsor, InvestorKit! Australia’s #1 Buyers Agency for 2023 and 2024. They specialise in helping investors find high-growth properties utilising industry leading AI and data driven research process across Australia. 70%+ of the properties they purchase are off-market and they have consistently outperformed national average capital growth rates by over 49%. Whether you’re looking to build your property portfolio or secure your first investment. Check them out here.