300k - Where in Aus?

Discussion in 'Where to Buy' started by Acekev, 7th Jan, 2020.

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  1. Acekev

    Acekev Member

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    If you had 300k to use today, where would you buy for good growth and rental return?
    Please explain why.
    Cheers.
     
  2. gerege

    gerege Well-Known Member

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    If I had 300k cash I’d use that as 3 deposits and spread it around the country possibly one in south east Perth and two around Everton park in Brissy.
     
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  3. Shogun

    Shogun Well-Known Member

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    A $300k property? Lots of choices in Perth
     
  4. Archaon

    Archaon Well-Known Member

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    300k property?

    Any budget for reno's or need to be rentable straight away?
     
  5. kierank

    kierank Well-Known Member

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    For a price tag of $300,000, I would buy in Toowoomba - yield of 5% and long-term growth of 7%
     
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  6. sash

    sash Well-Known Member

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    Hmmmm.....nope!
     
  7. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    He said 300k to use! Not a 300k property,

    With 300k, where would I buy? I would buy a nice side project in Brisbane. Inner to inner middle ring, buy cheap(ish), reno and sell.
     
  8. My House QLD

    My House QLD Well-Known Member

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    Suburbs?
     
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  9. Acekev

    Acekev Member

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    Apologies, I have worded this wrongly.
    I mean 300k property.
    Not 300 cash.
     
  10. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    I'm currently doing my research and have nailed one or two areas. I wont be disclosing (makes no sense to since i'm persuing this) but i will say there are some areas with older homes on 600sqm blocks with good aspects. Strong OO areas. But all require more than a simple cosmetic fix. Im talking total renovation, adding floors etc. But the margin is there if you have a good team and are able to cost materials well.
     
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  11. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    No Problem. For a 300k property i have no idea really, not my thing.
     
  12. Acekev

    Acekev Member

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    Further info.
    This is actually for my brother in law.
    He has 200k cash and this will be first property purchase.
    Doesn’t want to exceed 300k property.
    In the army so gets cheap rent close to work and doesn’t need a PPOR yet.
    Looking to get a good buy that he can pay the remaining 100k off quickly so he can have extra cash flow.
    Currently resides in Brissy but looking to buy anywhere in Aus.
    From my own experience I had great help here with my first purchase so thought I would throw this up.
     
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  13. samiam

    samiam Well-Known Member

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    If I had 200k cash, I will try my best to borrow more- at least 500k-600k- to get a better quality house in most capital cites (as big as possible, as close as possible to CBD, station, infrastructure). I guess you can buy 300k property in any rural towns but it would still be 300k in 10-15 years time....
     
  14. JohnPropChat

    JohnPropChat Well-Known Member

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    Can buy a villa less than 8km from Perth CBD. Can buy a house in less than 18km from Perth CBD
     
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  15. Shogun

    Shogun Well-Known Member

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    The other thing you might like to research is negative gearing and the tax implications of being cash flow positive

    Really simple
    $300k unit in Perth maybe $15k income
    $100k loan say $4k first year interest
    Other costs say $5k per year
    $6k positive
     
  16. kierank

    kierank Well-Known Member

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    @Sackie, I told you I was psychic :p.
     
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  17. kierank

    kierank Well-Known Member

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    On that feedback, it is a definite YES :p
     
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  18. Trainee

    Trainee Well-Known Member

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    maybe more education about investing and planning? Theres no real reason to limit himself to 300k. The attitude to debt seems to be from fear not choice.
     
    Last edited: 7th Jan, 2020
  19. sash

    sash Well-Known Member

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    If you want no growth...poor returns the place to be . I still prefer Victoria....
     
  20. kierank

    kierank Well-Known Member

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    I know this is anecdotal but my family bought a 4/1/1 house in 1972 for $16,000. Still owned by the family and today, it worth around $350,000 (no renovations, etc).

    That is 6.8%pa compound growth for 47 years. Yield has always been around 5%.

    Yep, you’re right. Bloody awful returns.

    I know:- past performance is no guarantee ...
     
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