A buyer's agent has named five Australian cities as the best places to find a home for less than $700,000 - and none of them are capitals. 

Millions of Australians were hit with another mortgage blow this month after the Reserve Bank hiked interest rates, pushing the cash rate to 4.35 per cent.

For an owner‑occupier with a $600,000 mortgage and 25 years remaining at the start of this year's hikes, another 0.25‑percentage‑point increase adds $91 to their minimum monthly repayments. The total increase across the three hikes since February would be $272 a month.

On top of that, the Federal Budget announced negative gearing will be wound back to only include new builds.

Buyer's agent Jordan Veleski, 37, told the Daily Mail the latest rates hike would not impact the housing market.

'If you're buying at entry level, under $800,000, I don't think it's going to affect that much. If you've saved up the money, and you've got buffers, then it's fine,' he said.

'Towards the top end of the market, over $2million, it may affect people but, for first‑time buyers at the lower end, I don't think it's going to affect them much. If they've made their mind up to buy, then they'll buy.'

However, the change to negative gearing will mean Australians hoping to buy a home will have to carefully consider what they are purchasing. 

'The government is effectively steering investor money toward new supply,' Mr Veleski said.

He warned that the crossover between first home buyers and investors will happen in new estates on the fringes of the capital cities where house and land packages sell for about $700,000. 

'Now investors will be competing in the same market because that's where the negative gearing benefit still applies,' he said.

'More buyers chasing the same product usually means upward pressure on prices which actually contradicts what the government says it is trying to do.'

However, he added that the reform may only impact prices in the short term and the 'long-term fundamentals haven't changed'.

'Anyone chasing the tax benefit needs to remember the property still has to perform as an asset for the next 10 to 15 years and not just for the first tax return,' he said. 

For those looking for their future home on a tight budget, Mr Veleski said Australians must keep an 'open mind' about areas outside most state and territory capitals.

'Perth, Brisbane, Adelaide – they've all doubled (housing prices) in the last five years,' he said.

'Even in western Sydney, houses are going for over $1.5million. Trying to buy that as your first home in your twenties isn't realistic for most people.

'Don't get caught up in areas that have already boomed or are at the top of the market. Look for markets that are emerging and just starting to grow.'

As a result, Mr Veleski shared with the Daily Mail his suggestions on the 'emerging areas' across Australia.

'My top five is for ideal locations for an under $700,000 standalone house with decent land, at least 400 square metres, maybe 500 square metres,' he said, adding that these could have three or four bedrooms.

Geelong, Victoria

Mr Veleski said the city, just an hour southwest of Melbourne, has four suburbs ideal for his specifications: Whittington, Newcomb, Thomson and Corio.

'They're very close to the CBD and Geelong has a 300,000 population,' he said.

The agent said that, when looking at homes, population numbers are a key indicator as they create stability.

'Where there's 50,000 plus in population means there's diversification in industry,' he said. 

'It gives you peace of mind and confidence that, long term, there's going to be growth.' 

He added that another significant feature was the presence of a domestic airport.

'It's attracting investors, first home buyers, retirees. Plenty of people are leaving Melbourne to go to Geelong,' he said.

Launceston, Tasmania

Mr Veleski said he has seen properties that fit his specifications in South Launceston and Prospect.

'I've talked to agents and it's a very hot market, a lot of buyer's agents are getting in,' he said.

'The rental vacancy is below 1 per cent so it is very tight for people to get a rental. But for buyers, it has a strong population of almost 100,000, with a lot of infrastructure going in. 

'There's a $2.1billion AI factory that just got put in St Leonards. It's ended up having 1,000 workers, and they want to make Launceston like the AI hub of Australia.

'If that actually happens, it's going to create a lot of jobs.'

Combined with an additional University of Tasmania campus, called Inveresk, Mr Veleski said there was a lot 'going for' the area and plenty of homes below $700,000. 

Cairns, Queensland

The suburbs of Edmonton, Mount Sheridan and Bentley Park in Cairns, Queensland, have possible properties below $700,000 but fewer rentals, Mr Veleski said.

'You've got a 180,000 population so it is strong, and they're expecting it to double by 2050,' he said. 

'You've got the Great Barrier Reef, they've got an international airport that goes to Tokyo and Singapore, so they're connected to Asia and they're in a good spot.

'They've just finished a $55million international terminal upgrade to the airport.'

He suggested that another approach for buyers is to 'follow the money', for example, the investment in the terminal upgrade.

'If a government, federal or state, is pouring money into these areas, it's a good sign that they're seeing growth,' he added. 

'People are moving there, tourists are coming in, and the economy is strong. So Cairns is my third tip.'

City of Hume, Victoria

The fourth potential location for house hunters is the local government area of Hume, including Broadmeadows in Melbourne's northern suburbs.

'We're talking Broadmeadows, Meadow Heights, Dallas - they're only 20km outside of Melbourne's CBD,' Mr Veleski said.

'They've got a direct train line. They've had 10 to 15 per cent capital growth in the last 12 months.

'We're seeing that the Melbourne market is turning in these affordable areas.'

The City of Hume also fulfils Mr Veleski's other criteria, with a significant population of 244,000 people.

The area also has an auction clearance rate of over 80 per cent, which the agent said is 'one of the strongest in the country'.  

Tamworth, New South Wales

While it is generally difficult to find properties for sale below $700,000 in New South Wales, it is possible in Tamworth, according to Mr Veleski.

'About $24billion is expected to be invested into a renewable energy zone in Tamworth. It's going to be like the capital of renewable energy in New South Wales,' he said, referencing the New England Renewable Energy Zone.

'It's got an intermodal freight terminal between Port Botany and Port Newcastle. So plenty of jobs happening there.'

He said it has a population of almost 70,000 and a local economy of $4.1billion annually. 

'I've actually just bought for a client in Tamworth. We paid $620,000 for a really solid property, a big block of land,' Mr Veleski said.

An exception: Darwin, Northern Territory 

While Mr Veleski had aimed for a 'top five' locations, particularly outside capital cities, he made an exception for the Northern Territory's capital.

'For Palmerston in Darwin, we're looking at suburbs like Gunn and Bakewell,' he said. 

'I just bought a property for $672,000 for a client, and he's now getting $780 per week in rent, which you can't get anywhere else in any of the capital cities.'