200k positive/ neutral cf where would you buy?

Hi,
Feel as though I am going around in circles. With such a small amount of money to spend, I have been searching and searching, from larger, more substantial regional properties (Ballarat, Bendigo) to small city properties. Have just about done my head in chopping and changing. With regional, the problems seem to be the surrounding land which could be released, to city properties being very small and therefor cg limited. Opinons greatly appreciated.

 

I think if you can only spend 200k, maybe best waiting until you can afford to spend a bit more allowing you to broaden your market options instead of just buying for the sake of buying. Slightly higher budget and you could easily allow yourself to look into other markets such as SA/Tasmania etc and purchase something better, or like you mentioned in the Ballarat/Bendigo area with some pretty decent yield too it. I'd hold off, but that's just my personal opinion obviously.

 

Thanks Ashimashi, I could prob go higher, but as I am a low to middle earner, was feeling like I should go in in a conservative manner. Unless of course there are properties out there cf positive. Am just looking now at areas of Geelong (whittington and surrounds) but these have a bit of a reputation attached. Would love a crystal ball!!!!

 

Nothing wrong with being conservative, but you won't find anything decent in Bendigo/Ballarat or Geelong for 200k. But if you up your budget by another lets say 50-60k which in the scheme of things wont make much of a difference to your cf, you could find something in Bendigo for example at around 6.5% yield around the vicinity of the new hospital etc being built. Slow cg expected for sure, but conservative and still decent for long term holding.

 

Hi @Mabelle20 try looking into the Cairns, QLD region, excellent rents, low buy in. <200k population size. You'll find heaps of units for that price. Just watch for the body corp fees. With that said you should still find a unit + cashflow after expences. But i stress again, get a cost of the body corp before anything. there is also a thread on Cairns, here. PM me if you need any thoughts on a property in particular. I'm tied up with my own purchase so not hunting right now myself.

 

Considered Adelaide? Thinking metro area might be more sustainable than country towns.

 

Thanks Andrew, hadn't really looked at Cairns, will check thread out now. Appreciate your input, will also do a bit of research re. CG, tenancy rates etc... Yep, bc fees seem to be a bit of a killer especially if there's a (eeek) pool involved.
Just need a bit of a kick to actually act on my ideas!!

 

Hi thanks for the reply. I hadn't looked at Adelaide at all, will try researching. Any particular areas ( I'm not familiar with the area at all)
Cheers

 

Hi Mabelle,

Areas in Adelaide in that price point would generally be limited to Elizabeth and surrounds and maybe around Salisbury. DT is all over the market and there are a few threads about Adelaide North V South on here. Plenty of people on here buying there.

Mick

 

Thanks NIck, will have a look. Appreciate your time.

 

tasmania. Adelaide - elizabeth or southern subs (low 200's).

Regional - you have suggested bendigo, ballarat, mildura. Mt Gambier could also be an option or Pt Lincoln. Lincoln is a nice town, very stable

 

The price point is a little low, Elizabeth, entry level renovator house in Salisbury might be the only capital city metro house options. I saw a few places in Salisbury North in the low 200s which needed work but there didn't seem to be a lot of competition so it might be possible to buy well there, yield 6-6.5%+.
For regional maybe Albury, Mildura or Tamworth. Units in most regionals but they are mainly house markets IMO.
Cairns units might fit the requirements but as Andrew H mentioned check body corporate fees as they can eat into a 9% yield making it unviable.
Tweed Heads West possibly for units, might need to spend a little more for one in a small complex.

 

One mile, Wulkuraka in Ipswich maybe. Check flood maps

 

Ok ill pretend you can go to 250 - 270
200 is a hard nukber to work with

GEELONG - east geelong, Thomson, possibly a shack around indented head

Bendigo - if your quick golden square

Ballarat - dont know it well enough to
comment

Phillip Island - cowes has cheap housing now thanks to oversupply of new development, will not be cheap forever

Melbourne - frankston north maybe, havnt checked but i think epping, mill park have gone up
You could try dallas and coolaroo as well
Or a 2 bed unit in western suburbs

Adelaide - you could do as many have suggested or you could try around port adelaide - rosewater, maybe birkenhead
Down south beachside christies, aldinga, o sullivans, sellicks
Down south in from beach - christies downs, huntfield heights, hackham west
Or a really good option would be a 2 bed unit in the western suburbs

Hobart - berriedale, goodwood, rosetta at a pinch, lutana
Surfspot - dodges ferry, carlton beach
Plenty of other good spots around Tas that could have huge gains long term but its speculative

Brisbane - ipswich, logan areas
If you get lucky something in clontarf or margate
Lots of cheap areas between ipswich and brisbane but im not a huge fan

Townsville - start in west end, hermit, hyde park and work out till you find a house your comfortable with - youll probably settle around gulliver or currajong and you will be shocked by the quality of house you can afford

Cairns - look in suburbs starting with M
housing stock quality will be low though

Roughie in qld - hervey bay

NSW - look around port macquarie and coffs harbour dont think you can afford near tweed heads
toronto maybe

WA, NT - still falling
canberra - dont know

 

Thanks, Bendigo could be a good one, will check out Lincoln.

 

Hi and thanks. I looked at Cairns but like you said the bc makes it impossible. I'm not at all familiar with Adelaide so think I'll concentrate on Bris and Melb. Thanks again for input!

 

, wow thanks for all that info! Have seen quite a lot of freestsnding houses in Ipswich area (will,chec k flood areas) and will need to look on a map for best of the picks. Why are you not a huge fan? I do remember Ipswich having a bad rep growing up, but gave lived in Melb for 20+ years so hoped it would have changed a tad!

 

We have just got back from Ipswich a couple of weeks ago, having never been there before. I quite liked the area and found that there were a few nice pockets. I should say that I did grow up in south west Sydney so have a bit of a tolerance for low socio areas. We ended up getting a free standing house, close to uni, schools and CBD in the low 200K range, with 6.4% yield. Lots of money being spent in the area.

 

I dont mind ipswich if your paying under 250
Or find a huge block with future dev opportunity but those ridiculous deals have dissapeared since i last looked a couple of years ago

 

Thanks Mick, Was looking at different areas of Ipswich and is really reasonable. If comfortable, what part of Ipswich did you end up buying in? Some really pretty houses out there!