$430,000 to spend: Recommendations please!

Hi All,

I have pre-approval to purchase an investment property priced at up to $430,000. This will be the first of 3 IPs I'm planning to purchase, each priced at up to ~$430,000.

My strategy is to hold these properties for the long term for passive income, so a good rental return is my primary focus, with any capital growth being a welcome secondary priority.

I'm open to purchasing in anywhere (any state/territory), but a budget of $430,000 obviously limits me to regional areas.

If you had $430,000 to spend, I would really appreciate your thoughts please on which towns and suburbs would be at the top of your purchasing list.

Thanks!

 

what's the rental return are you looking for?

 

Capital growth is very important.

 

I agree, and that would be great, but since I'll be buying in regional areas I'm aware that I shouldn't be expecting stella capital growth.

 

Go for Perth.
Imho that has the best upside.
Or Darwin is a dark horse I believe but have to have better timing to get out.

 

Have you tried using realestate.com and filtering down by price and then writing down a list of suburbs that fit with your criteria in terms of rental yield, block size and config and then digging further into the area and looking into employment drivers, council regulations, supply and demand?

Because I'm currently buying and my budget is same as yours and that's just what I've been doing. And once you have specific suburbs in mind then you can ask what people think of those suburbs.

Imo it's a bit broad to be asking for that budget and any state/territory. Are you open to international opportunities too? Are you okay with a unit or a townhouse or a duplex or houses only?

 

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$430k buys a lot in the regional town of Perth a little town a long way west of Mount Druitt.

A million dollar property worth 1.5 to 2 million in 10 years (plus any rent collected) vs several cheap regional properties maybe clear several thousand per property cash per year and still only worth what you paid for them. Interesting choice.

 

$430k you are not necessarily restricted to regional.
There are parts of Ipswich, Logan and upper Moreton Bay you could look at, as well as parts of Perth or Adelaide.

 

even in pockets of adelaide. focus on capital growth though

 

Thanks. Perth looks very interesting actually. My budget appears to put me within range of some 4 bdm brick veneer houses that are well within Perth city limits, where rent for a 4 bdm would appear to be around $400 p/w.

But after Shogun's post, I've gone away and done some reading and am now thinking that I should in fact be prioritising capital growth over rental yield. With that being the case, the question then is how to find properties that are <$430K in towns/cities/suburbs of highest capital growth?

 

I think the goal is a lot of places can have both. You aren't going to find a unicorn that has 7% yield 15% CG year on year for $430k (if you do, tell me where ), however somewhere like Perth for example that you mentioned, you should be able to find a positive cashflow place that will still give you reasonable/solid CG, even if not spectacular like the recent boom in Aus.

 

$430,000 won't get you much in Hervey Bay...but you can still pick up older, 3 bedroom houses for that price.

And there's no river systems near Hervey Bay and it's very flat (no mountainous areas nearby) with sandy soil (drains quickly) too.

So flooding is not an issue in Hervey Bay but of course DYOR.

 

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So like actually do your own research? Interesting.

 

Thanks, applesathome. I appreciate the input and will start researching which suburbs within Perth represent the best opportunities.

Thanks, Boss. Hervey Bay certainly wasn't on my radar.

I'm trying. I'm on realestate.com.au every day looking at options all across Australia as well as different property investment websites reading articles and looking at stats for different suburbs. This thread is simply to complement that research - to see what people who have been in the game a lot longer than I would do in my situation. If people are willing to share their thoughts then great, if not, no worries.

 

Again Perth.
Look at the median. There's room for growth

 

Check out Townsville. Can vet a good family house for that price. Just though. It's moving.

 

Does anyone have a view on North Adelaide (Salisbury) v South Adelaide (Morphett Vale) at this price point?

 

Perth. House not apartment.

 

Rockingham or Mandurah in Perth, could definitely pick some up for under that price although the good 4bedders are moving past that.

 

Have a look at Bundaberg, although probably priced out of the better flood free suburbs like Ashfield now. Properties that were selling for 390-400 there 7 months ago now selling for 440+. High rental yield as well.