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300K to invest, only focus is on cap growth

Discussion in 'Where to Buy' started by bamp, 9th Jun, 2016.

  1. bamp

    bamp Member

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    Hi everyone, was just after some recommendations on what you would be targeting (type of property as well as location) if you're only objective was capital growth over a 10-20 year horizon?

    I'm interested in 600m2 blocks of land on the outskirts of capitals, but don't think this is the best strategy, so would love to here other opinions?
     
  2. hpresident

    hpresident Well-Known Member

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    What do you want to achieve in 5 yrs, 10 yrs time? How much effort do you want to put in?
    For relatively low risk/medium gain, buy in Melbourne, larger block of land, mid ring.
     
  3. bamp

    bamp Member

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    I'm 30, so would expect to hold it for at least another 20 years. Unfortunately on a 300k budget, dont think middle ring in Melbourne is in my price range, maybe if i'm lucky the outskirts...
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Have a look a mid ring of Adelaide?
     
  5. Proper Property

    Proper Property Active Member

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    How about these suburbs and areas in that price bracket:

    - Deception Bay
    - Bracken Ridge
    - Units in Inner West Adelaide in areas such as Mile End and Brooklyn Park, Underdale
    - Onkaparinga Shire (Suburbs such as Hackham, Christies Beach, Morphett Vale, Noarlunga Downs)
    - Crestmead and Marsden in Logan Shire
    - Norlane and Corio near Geelong
    - Werribee
    - Frankston
    - Cranbourne

    I think these are the type of suburbs that may fit into what you want to achieve. However I would like to see what others think of the above suburbs and areas in terms of their capital growth prospects within the next 5 years.
     
  6. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hi @bamp and @Proper Property,
    I can speak for 3 of the above areas which I'm invested in:
    D-Bay - yep still can get established house on 600m2 block of land yielding above 6%
    Bracken Ridge - won't be able to get a house on 600m2 in BR for $300K - probably more around the $400K mark.
    Logan Shire - still possible with yield above 6%. Eagleby could be a shot also
     
  7. JDP1

    JDP1 Well-Known Member

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    look interstate. assuming you are as you said only after CG- I would think there are better 300k CG plays than melbourne for the money.
     
  8. Azazel

    Azazel Well-Known Member

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    Can you still get anything around there in that price range?
     
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  9. Proper Property

    Proper Property Active Member

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    What areas around the 300-350K mark would be better than outer Melbourne for capital growth in the next couple of years?
     
  10. JDP1

    JDP1 Well-Known Member

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    Most of the areas the above posters have said.
     
  11. bob shovel

    bob shovel Well-Known Member

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    If you're in no hurry go to Perth and get a... bargain basement premium location low ballin distressed fire sale of a good deal:cool:
     
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  12. Azazel

    Azazel Well-Known Member

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    No rush apparently, you could probably wait and see what happens over there.
    Could keep going lower.
     
  13. JohnPropChat

    JohnPropChat Well-Known Member

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    Perth has still ways to go. Adelaide is coasting along but hard to predict how the falling economy will affect the prices in the medium term.

    How about a wait-and-see approach for the next 4 to 6 months? I honestly don't think you'll miss out.
     
  14. cherubym

    cherubym Well-Known Member

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    Are you serious or just joking? I'm thinking the same too. I have a bit risk appetite. :)
     
  15. bob shovel

    bob shovel Well-Known Member

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    Check out the perth threads. General consensus is is yet to hit the bottom of the cycle. It doesn't suit me atm moment but I'd be looking to get in as close to the cbd with a bargain buy rather than the outskirts for same money. There would be distressed sales around. ..but also comes with high vacancy rates and low yields
     
  16. Azazel

    Azazel Well-Known Member

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    Yeah, by all accounts it's still on the way down.
    Good to keep an eye on it, maybe in another 12 months.
     
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  17. bamp

    bamp Member

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    My time frame is actually 6 - 12 months, and funnily enough, I have been looking at Perth.
    I feel that over a 20 year time frame, it should outpace Melbourne and Sydney, which are much more established.

    Have there been any forecasts on what the population of Perth will be in the future? I remember during the mining boom, various govt and private reports forecast Perth to be pretty close to Melbourn'es population by 2040-50. I can't see that happening now...
     
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  18. bobbyj

    bobbyj Well-Known Member

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    Looks like a few of us have Perth on our radar.
    I'll wait until you guys pounce then I'll follow suit.
     
  19. Azazel

    Azazel Well-Known Member

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    I'm going to wait for you to move in there.
    I wanna see the bounce off the bottom :)
     
  20. Greyghost

    Greyghost Well-Known Member

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    Possibly save a bigger deposit and then purchase a higher value better quality property. $300k is a tough bracket