Hi all, first time poster. The bank has approved a loan of $480-500k so I am looking for an investment property between the 500-600k mark. I want to buy and hold for long-term (25+ years). I plan to buy additional IPs in the future using equity from this first IP. I live in Victoria so would prefer a local IP, but can be persuaded to buy elsewhere in Brisbane, etc. I'm looking for at least 3 bedroom so I can rent out the individual rooms, possibly to students, as a rooming house. I am looking to negatively gear the property with a positive cash flow. I am also $20,000 invested into ETFs currently. I also plan to move out of my parents and rent in the next 5-7 years. Using this information, what region and type of property would you recommend? Thanks everyone.
For your price bracket there is only 1 area to look imho right now. Logan in QLD. You dont have much choice left even at your price bracket now but if you act within the next few months still possible.
Thanks for the suggestion! In your opinion, what types of properties should i be looking for? Strictly houses or apartments, townhouses, villas?
+100000 ONLY free standing houses. Try to get something on min 450+sqm at least. Larger the better but then the price goes up obviously. Logan is currently sitting on under 1.5% vacancy rates as well so you'll get a tenant within a few days of listing. Growth as been amazing. If you check the Logan thread you'll see many suburbs have had close to 50% growth this year alone. Ideally you should have bought last year but even after all this growth they are still undervalued for now.......be quick.
Thanks for the suggestion. I’ve heard good things about Hervey Bay. It’s not a necessity, but do you think I’d still be able to rent out the individual rooms considering the location and demographics of the area?
My understanding is the cash flow is positive because the rent received is higher than the mortgage payments. The property is negatively geared on paper through depreciation, interest and bank charges. There is a sweet spot in the middle which can satisfy both of these.
This is VERY VERY hard to do now and it is the absolute best scenario any investor can wish for. Basically cashflow positive/neutral on a house meaning you put a big fat 0 into holding costs but you are negative geared due to depreciation of the asset. This was the ideal scenario and was achievable when yields were high enough and the government didn't change the rules to depreciation yet which kicked in 2017 I believe. Yield these days most likely is not high enough anywhere and the depreciation rules changing means this would be immensely difficult to achieve these days.
If you can find a property that has good capital growth potential and will give you a positive cashflow that allows you to have 0 holding costs that is the perfect one. Capital growth is what is going to make you a millionaire. Cashflow is going to make your journey and growing your portfolio easier. You need both to some extent. I think the chances of you finding a property that offers excellent growth + cashflow is long gone now. Logan is probably the closest you will get now. Or maybe some other places in Perth or SA but I don't pay attention too much to those markets. In Sydney you wont find a single property that will meet this criteria. Its grown so much and yields are way too low.
i could suggest frankston near the uni around bloom st if your looking something like that?? 2 or 3 br freestand unit (yes i know) mostly 200pw per room id think lincl bills.... when i had my place in frankston i had 2 rooms rented out in 2011 for 180pw per room incl bills! i wasnt paying a thing to my property so i could fund my renos. worked really well! other option is look for regionals, fed uni churchill etc out east
also this just come on the market, good price point. most likely slow growth, needsa little work if you can bothered, 7 Woorilla Court, Frankston, Vic 3199 - House for Sale - realestate.com.au
Thanks for the recommendation but I think Frankston might be a bit above my price point. I'll check out Churchhill cheers mate!
So I think the general consensus is to avoid Sydney or Melbourne unless I come across a rare gem. Is there any value left in the Officer/Clyde or Werribee/Footscray areas? Also, what is the buying process like for buying interstate? Do I need to sticky beak the area and attend their auctions? Should it be done through a buyer's agent? How would my criteria change when looking through Brisbane properties?