5th property - where to invest?

Hi all,

Finally my first post in Property Chat! I am planning to purchase an IP this year but I am still not sure where. I have 4 properties in Sydney so I was thinking about buying in QLD or VIC. However I may still consider buying in Sydney western suburbs which may see growth with the construction of the new airport. I've got a long term strategy (around 10 years) with focus on growth rather than cash flow. My budget would be around $700K-$800K (probably a house). Do you have any recommendation? I am not familiar with QLD or VIC so I may need a BA to assist.

Thanks everyone!

AlexV

 

To avoid concentration risk and to minimise land tax, I'd suggest somewhere that isn't NSW. Personally I'd consider Melbourne.

 

Regional melbourne?

 

Melb, but buy at or below the FHB cut off at $600K.
There are still some good pickings in areas relatively close to CBD. If you can source potential deve site will help long term growth if holding.

 

Great work on 4 properties in Sydney- well done. You now need to diversify. Agree with BNE & MELB.

 

Hi MTR,
What areas can you suggest?

 

west and north
Look at Broadmeadows, Dallas, Jacana .... I have not looked for a while but these are or were affordable, on the nose areas with locals, many development blocks, look for properties close to rail. these may still represent good value.

 

Adelaide of course.

 

Thanks everyone for your answers!
Any recommendation for a good Buyer's agent in Melbourne area?

 

Its very interesting, suddenly everyone is waking up to Melbourne, don't you love it, been flying under the radar on PC and booming since 2013, same time Sydney started booming. Been banging on it long enough but the herd went to Brissy for whatever reason... and missed some spectacular growth

Question though is it too late? I don't know? I would look at bread and butter areas to reduce risk

 

I like Lalor. It's below your price range but also in that sweet spot for FHB. Yield is usually below 5% but I think growth will be fantastic over the next three years and beyond. This is just a recommendation of a suburb for you to do your own DD on, please don't buy without researching.

 

Lalor has had some serious growth, with developers jumping in. I guess the case everywhere, there must be some hidden gems no one knows about

 

If I was buying now I would be looking at Adelaide too. For $700K-$800K you can get two houses in growth potential suburbs.

 

Haha, I think you know there is! Lalor has had growth, is it the top? I don't think so at all but hey I could be wrong. I think if you purchased now in Lalor you should still get strong growth for a few years and certainly over 10 years. If you can land bank at the same time then happy days!

 

What are yields like in Adelaide? Can you get over 6% in areas tipped to grow?

 

I really don't know, not looked lately.

I know a deve site sold recently in neighbouring suburb Thomastown sold for $680K record price? When I purchased I paid $428K in 2013, similar block.

There will be a cut off point for deve sites, when the builders can no longer make money they will stop buying.

I love Melb though, I still believe its the safest market in Australia, number 1 immigration, economy thriving, service industries buzzing along... a nice part of the world

 

You can get over 6% in lots of areas. Whether those areas are likely to grow is subjective.

There are lots of threads on Adelaide by @Corey Batt and @D.T., like this one:

SA - Salisbury LGA Summary

I have found them really useful.

 

Yep Thomastown and surrounds are booming at the moment...actually sick of my son reminding me

 

Any suggestions on cash flow suburbs with a $200k range in Adelaide? Obviously after capital growth, however more focused on cash flow for the next purchase.

Thanks

 

SA - Elizabeth SA Mega-thread continued..