Bargain Areas (NSW, QLD, or VIC)

Discussion in 'Where to Buy' started by PropDir, 2nd Jul, 2020.

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  1. PropDir

    PropDir Well-Known Member Business Member

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    Hi all,

    Given the current COVID situation, I am noticing that prices are reducing in a number of areas.

    Could someone provide some thoughts/suggestions on suburbs < $600k price point with rental yield of at least 5%. Restrict to areas in NSW, QLD, VIC (east coast only).

    Preference is house, or townhouse as secondary priority. Looking for long term growth/capital gain of course, with decent demand in the area and decent infrastructure/facilities.

    Thank you.
     
  2. Westie

    Westie Well-Known Member

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    Some parts of Geelong, the 'Rat too in some areas. Metro Melbourne, maybe the outer bayside (townhouses/units, maybe, not houses).
     
  3. PropDir

    PropDir Well-Known Member Business Member

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    Hi Westie - what is the 'Rat?
     
  4. Westie

    Westie Well-Known Member

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    Ballarat is affectionately called that :)
     
  5. 27649

    27649 Well-Known Member

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    Hey mate,

    With your budget I believe you could get something relatively nice in some of the very desirable places in parts of the Gold Coast and Sunshine Coast which have good appeal to owner occupiers which makes for a solid growth investment overtime. However in saying that you could get also get I believe with your budget a nice property (house) around the inner-middle rings of Brisbane one that could have future development and value add potential. I’d be looking for a house located within the Brisbane Council LGA zoned for multiple dwelling, so in the longer term you could potentially redraw equity and use the property as security to do a small development.
     
  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    At that price point you can squeeze into some nices parts of Brisbane, but the market is holding up pretty well here at the moment.
     
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  7. PropDir

    PropDir Well-Known Member Business Member

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    Thanks all.

    How do you feel about the following areas for long term growth? It has the yields I am after and I was looking in these areas a couple of years back but did not end up finding an ideal property. My observations are that Upper Coomera areas seemed to have better quality tenants and less issues compared to the Logan suburbs. My main concern is capital growth prospects, so your thoughts on that would be good (yields are good in these areas)

    * Upper Coomera
    * Coomera
    * Woodridge
    * Eagleby
    * Beenleigh
    * Slacks Creek

    How have the property managers been in the areas above based on your experiences, and has it generally been a hassle free investment?

    Finally, would you prefer to go for houses or town houses in above suburbs?

    Thank you.
     
  8. Rich2011

    Rich2011 Well-Known Member

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    I have a quiet few in Logan. They have been hassle free. You need to ensure you buy the right property and engage a GOOD property manager. Get references from other people who have properties in Logan before you pick a PM, don't just believe property managers when they tell you they are the best.

    Don't believe everything you read about Logan, there are lots of decent tenants in the area.
     
  9. fols

    fols Well-Known Member

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    For $600K you can get into some Brisbane City Council Suburbs (that have much better fundamentals than the ones you have listed).
     
  10. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    I'm watching Cape Paterson but investment there is looking like a risk.

    First sustainable housing development in Australia where houses have an energy rating of around 8. Home

    I think that will attract a decent community that either live there or use it for holiday homes. It's effectively doubling the size of Cape Paterson and I can imagine there could be a nice little culture developed there that will become more and more attractive for wealthy Melbourne families.

    Furthermore a new development will triple the size of the place (Cape Paterson's $150m boost - up to 900 new lots - South Gippsland Sentinel-Times). I'm thinking a shopping area will need to be dropped in soon, which is main thing holding back cap growth here IMO.

    I think a home in the sustainable development will set you back 700k minimum but there are <600k options in the older part of Cape Paterson. (example: https://www.realestate.com.au/property-house-vic-cape+paterson-133933866)

    Plus it's a beautiful part of Victoria down there.
     
    Last edited: 9th Jul, 2020
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  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    * Upper Coomera
    Great area, lots of 2000's builds.

    * Coomera
    Great area, lots of near-new builds (2010+).

    We manage quite a few in the Northern Gold Coast area. It doesn't seem to matter how much stock is on the market at any given time, there are still plenty of great quality tenants looking. I never get vacancies there because no one ever leaves!

    * Woodridge
    Plenty of great spots, but pick carefully- lots of old homes falling apart and LOTS of sub-par tenants looking to take advantage of a stupid or lazy agent.

    * Eagleby
    Under-rated area, it's got a bad reputation but a surprisingly strong community. It's still dirt cheap and I think it's a good bet for gentrification, plus you can't beat that highway-side location.

    * Beenleigh
    Also a big fan, council has spent a pile on the CBD and new development. It's in an equally unbeatable location, but generally a bit more expensive than Eagleby. Lots of blocks with development potential, but they're already pretty expensive ($400k...!)

    * Slacks Creek
    Hit and miss. Some parts are crap, some parts are lovely. Very very similar to Woodridge.
     
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  12. PropDir

    PropDir Well-Known Member Business Member

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    Thanks Richard - that's useful info. I will research this further.
    Do you prefer buying regular houses, townhouses, or apartments in Logan area? And do you have any particular suburb preferences in Logan in particular such as Beenleigh etc.
     
  13. PropDir

    PropDir Well-Known Member Business Member

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    Hi fols - are you able to list a few decent suburbs in BCC area as you mentioned?
     
  14. PropDir

    PropDir Well-Known Member Business Member

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    Thank you Tom. I actually made a trip around 5-6 years ago to the Logan area and checked out a bunch of properties in all of the above areas. I ended up making an offer on a townhouse in Eagleby but ended up not proceeding due to an issue with the building inspection.

    From memory the properties I saw in Woodridge were very cheap but it was clearly in a dicey location and know there would likely be many tenancy issues.

    I do recall people commenting positively about Beenleigh in comparison to other parts of Logan.

    Regarding Coomera and Upper Coomera, yes although there appears to alot of stock for tenancies, they get snapped up by tenants.. vacancy rates there are 1.88% which makes it particularly attractive to me.
     
  15. pattoman

    pattoman Well-Known Member

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    Well there's gonna be an influx of Hong Kong people, think of where they like to settle.
     
  16. Angel

    Angel Well-Known Member

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    Definitely not Woodridge
     
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  17. willair

    willair Well-Known Member Premium Member

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    Going by the location and the business people that are already living there this location ..
    Sunnybank, QLD 4109..
     
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  18. Rich2011

    Rich2011 Well-Known Member

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    I prefer houses. Definitely not units although there are not many around at the moment. With houses being so affordable I would probably steer clear of townhouses.

    Any of the Logan suburbs mentioned by Tom are good, you just need to make sure you buy the right property.
     
  19. fols

    fols Well-Known Member

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    Ferny Grove
    Mitchelton
    Brighton
    Banyo
    Geebung
    Aspley
    Ferny Hills (MBRC)
    Arana Hills (MBRC)
     
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  20. Nathan Prasad

    Nathan Prasad Well-Known Member Business Member

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    I have been purchasing across North Brisbane and your budget can get you something with development potential. We just went under contract with a property in Zillmere.
    Purchase Price: $510k Rent Return: $480 per week. Block can be split into two.
    Otherwise you have Arana Hills, we picked one up for $485,0000 with a rent return of $480 per week on over 1000m2.
    Unfortunately Stafford and Chermside were good spots but they have had incredible growth and now GeeBung and Zillmere and on the radar for growth. When you go to open homes there is a min of 30 groups, demand is crazy. Mainly from First Home Buyers with no experience in negotiating. So they are over paying and driving prices.
     
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