Dan Holme is marketing his Bulimba holding at a price well below the suburb’s median. Photo: Lachie Millard‘LOCATION location location’ is the mantra for high-flying property purchasers, and we’ve found the cheapest way to get first-class real estate at a premium-economy price. An interactive tool created by realestate.com.au (REA) allows blue-chip bargain hunters to bag cut-price homes in premium positions, by identifying cheap suburban “micro-pockets”.The analysis relies on Australian Bureau of Statistics SA1 zones, which are mini areas in every suburb made up of 200 to 800 people. Buyers can enter the name of their favourite suburb, and the REA tool identifies the suburb’s micro-pocket where homes are most affordable.Micro-pocket analysis of some of our most expensive suburbs for houses revealed the hot options for cut-price buyers.According to the research, you could save around $850,000 in our most expensive suburb, Teneriffe, by buying in the cheapest pocket.In Ascot, you can save $690,000 while in St Lucia, there’d be $527,000 discount on the suburb’s median. Discount micro-pockets within some of Brisbane’s most expensive suburbs.REA chief economist Nerida Conisbee said cheap pockets let buyers have the best for less.“I think for people who want to live in these suburbs, there are potentially cheaper options for them,” Ms Conisbee said.Ms Conisbee said compromises need to be made, but buyers can still land a premium address.“For some of these locations, the cheapest pockets are right on the edge of the suburb, or they may be far from water as that can make a difference, it may be an area that doesn’t have many views, it may be on a really busy main road — there are those factors which can really contribute to a large price differential,” she says.Ray White agent Graeme Quinn said budget buyers in Bulimba, who can achieve a micro-pocket discount of around $400,000, are aware of the location’s advantages.More from newsParks and wildlife the new lust-haves post coronavirus23 hours agoNoosa’s best beachfront penthouse is about to hit the market23 hours ago“Being close to Oxford Street (cafes), the CityCat and the schools — everything is there,” he said.He said buyers need to factor in an individual property’s limitations, but the saving can be worth it.“You’re always going to get more bang for your buck on a main road, but you’re still going to be close to everything you need to be to,” Mr Quinn said.Mr Quinn said buying cheap can form part of your long-term strategy.“You can use it as a stepping stone and rise to the next level,” he said. “Capital growth is so good in these blue-chip suburbs — if the houses are going up $100,000 a year and you’re in that blue chip suburb, well your is going up with them,” Mr Quinn said.Dan Holme is looking at offers over $799,000 for his three-bedroom house at 8 Baldwin Street Bulimba.His price is a substantial discount on the suburb’s $1.219 million median.“It’s such a handy area for wherever you want to be and whatever you want to do,” he said.Mr Holme renovated the home and is pitching to buyers who want to get their foot on the Bulimba market.“Even for the first-home buyer it’s a bargain property and being in Bulimba, it’s never going to go backwards,” he said.Mr Holme said the property’s view of the local substation puts some purchasers off, but this can be easily overcome.“When I was living there, it was no problem. It is basically a bit of an eyesore and it’s only a matter of planting a few trees to block that out,” he said.Follow Kieran Clair on Twitter at @kieranclair
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