The latest government data shows that household wealth in Australia continues to rise and residential property is the main reason for that.

New data from the Australian Bureau of Statistics has shown that the wealth of Australian households has risen for a sixth consecutive quarter, with residential land and house prices the largest contributor.

The ABS figures indicate that household wealth on average increased 2.7 per cent in the March Quarter.

In raw numbers, our collective wealth increased by $431 billion - to reach over $16 trillion.

Those numbers are probably meaningless to most people – but the total wealth of Australian households is now 10 per cent higher than it was a year ago.

Residential land and dwellings were the largest contributors to quarterly growth in household wealth.

And the ABS figures show that, overall, residential property accounts for two-thirds of our wealth.

Dr Mish Tan, who is the ABS head of finance statistics, says that “Rising asset values continue to drive growth in household wealth, with house prices continuing to increase.”

Other ABS data shows ongoing growth in loans for the purchase of residential real estate.

And the growth in lending to buy property is occurring both for owner-occupiers, including first-home buyers, and for investors.

The figures emphasise just how important residential property is in the economic life of the nation and how the ongoing growth in property values underpins the financial fortunes of most Australian households.

Investors come to property markets in many different shapes and sizes, but our observation is that most are seeking a level of affordability.

The official data shows that most Australians seeking to buy investment properties are not wealthy, with most having incomes below $100,000, and most have just one property or are buying a rental property for the first time.

This dictates, for many, a purchase somewhere in the range from $400,000 to $600,000.

Fortunately, there continue to be options in regional Australia where buyers can access houses in this price range in locations which have good prospects for future capital growth.

Our day-to-day research shows that investors can buy in regional areas at affordable prices, achieve above-average rental yields and look forward to good price growth.

That old attitude that you have to make a choice between strong capital growth or high rental yields is one of the great misconceptions of residential real estate.

If you choose your location well, you can have a good combination of both.

Those seeking to buy in that price range between $400,000 to $600,000 can still find possibilities for houses in the cheaper areas of some of our capital cities – and, increasingly, investors who are aware of the current trends can find good options in the market for units and townhouses.

In cities like Brisbane, Perth, Adelaide and Melbourne, you can buy units in inner-city areas in that affordable price range.

The rise and rise of apartments and townhouses as the dwelling of choice for many important cohorts has meant that attached dwellings are increasingly challenging detached dwellings on capital growth, while providing cheaper buy-in prices and higher rental yields.

So, how can you find out more about the possibilities?

By reading our new Cheapies with Prospects reports.

We have two editions of the Cheapies reports – the city edition and the regional edition – and in these reports the key criteria are that the locations have affordable options and the credentials for capital growth.

The new editions are available now and provide clues to the places you can look to find that precious combination of affordability, good rental yields and potential for growth.

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