750k for capital growth

Discussion in 'Where to Buy' started by Damarcus11, 22nd Feb, 2020.

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  1. Damarcus11

    Damarcus11 Well-Known Member

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    I predict that I can get a loan that allows me to purchase for about 750k. I already have an IP in Brisbane, so would ideally like to buy in another state to diversify. My strategy at this point is purely to accumulate assets for CG.

    With cashflow not being a priority, where would you recommend me researching? I'd guess a freestanding home would grow more than a unit, but in Sydney/Melbourne, my budget would severely eestrict my options.

    Any tips would be appreciated!
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    What are you basing your prediction on?
     
  3. Damarcus11

    Damarcus11 Well-Known Member

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    Just from online calculators. I will go to a broker to confirm an exact figure in the near future. Back to my question, where would you buy a CG property for 750k outside Brisbane?
     
  4. Trainee

    Trainee Well-Known Member

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    Western sydney weatherboard >600 sqm.
     
  5. bookworm

    bookworm Well-Known Member

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    How about a townhouse in Melbourne? It should be achievable at that budget.

    I think for 750K, you'd struggle with good quality stock in Sydney (i.e. 2+ bedder, 1+ parking, in a growth area).
     
  6. JohnPropChat

    JohnPropChat Well-Known Member

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    How about 2 middle ring houses in Perth fetching 6% yields and and has CG prospects or 1 inner ring (<7km from the city) blue chip suburb fetching good yield and has good CG potential.
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    If your existing Brisbane IP is a similar price point you may get close to hitting the land tax threshold if you go again in QLD so makes sense to diversify.

    You can get plenty of stock in the outer suburbs in Sydney and Melbourne. I'm seeing a bit of activity in SE Melbourne in particular where the yields are not too bad for the type of stock (upward of 3.5% for freestanding houses).
     
  8. catdog

    catdog New Member

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    For capital growth? Interested in your thoughts on this
     
  9. Trainee

    Trainee Well-Known Member

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    Land appreciates. Assumptions are that long term Sydneys population will keep increasing. Where will people live? Western Sydney has trainlines and existing infrastructure. >600sqm means you might be able to subdivide. You dont have to do it yourself, but that will add value when you sell to someone who does.

    Buildings depreciate. Buy a house that can be rented out. The weatherboards are fine. Why not spend more money to get a semi in the inner west? Those will do well too, but for about 600k, western sydney is cheaper.
     
  10. catdog

    catdog New Member

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    The reason I ask is I’m in a similar boat to original poster. First home buyer/investor ~750k to spend.

    Prefer capital growth over cashflow for building wealth. Inner West would have better capital growth but $750k won’t get you far. Definitely not land and more likely an apartment, not ideal.

    I’m leaning towards western Sydney for the reasons you mentioned. Could get a weatherboard with granny flat >600m2 with roughly 5% cashflow for the money.

    Not sure if there are better options. Where would you look in Western Sydney? St Marys/St Clair, Penrith etc.
     
  11. MTR

    MTR Material Girl Premium Member

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    If you are chasing capital growth, I think its time be patient and watch and wait. I think it will be very difficult to achieve this in current environment

    i would wait for a treatment or vaccine, then watch the economy closely. Our country is currently going into massive debt.

    Dont want to poo poo property, but I would never recommend buying in this market, unchartered waters