Best buys Under 400k. .. where to buy ?

Discussion in 'Where to Buy' started by Shaq_01, 6th Nov, 2016.

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  1. Shaq_01

    Shaq_01 Active Member

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    Hi All,

    Would love to hear thoughts on where to buy under 400k and still get returns above 8%

    Basically want to just hold this property (happy for this to be a slow capital/equity builder) - ideally rent should cover PI and associated costs.

    Would be great if land size allows future subdivision

    Ideally don't want serviceability to be impacted negatively cause I wanna buy a PPOR towards end of 2017 (in Melb)

    This will be under my partners name (she does not own anything ATM - salary around 60 - 65k ^ = monthly she has about 1000 - 1250 left over after expenses)

    She does have 5% saved up

    Any thoughts or suggestions would be appreciated
     
  2. MTR

    MTR Well-Known Member

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    Broadmeadows
    Dallas
     
  3. Shaq_01

    Shaq_01 Active Member

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    What about Jacana Coolooroo ?


    Or Corio, Norlane ...
     
  4. MTR

    MTR Well-Known Member

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    My pick was Broady cos its close to CBD, many development sites and last time I looked was under $400K, where in Melb will you get development sites this cheap, this close to CBD??

    I forget to mention the locals hate Broady, very much on the nose. Don't let this worry you I didn't last time I purchased and made over 40% profit, offloaded the lot now. Still excellent value and just shows you can make money in these undesirable areas as long as you buy the right product and right location
     
    Perthguy likes this.
  5. Shaq_01

    Shaq_01 Active Member

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    Ya I am not concerned about reputation of a suburb per se

    I am from Sydney and 10 - 12 years ago you could not pay many ppl to live in bankstown or blacktown (it might sound superifical now)....but I know ppl who bought into those areas 10 12 years ago and now are on their second or third property (houses) in better areas - bexley, kingsgrove Miranda etc

    I am still youngish (early 30s) - so if I make good choices I can recover (to an extent) on not buying property in 2006 in my early twenties ....when a mortgage scared me and I was more worried about a good time and travelling....
     
  6. HUGH72

    HUGH72 Well-Known Member

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    8% yield is very high. This would limit your options to a few low socioeconomic areas in capital cities like Elizabeth Downs/North, dual living highsets in Logan or duplexes/small unit blocks in big regionals like Albury. Cheap houses in NSW regionals like Orange etc.
    For a slightly lower yield the options are greater and they would potentially still be cashflow positive.
     
    Shaq_01 likes this.
  7. Shaq_01

    Shaq_01 Active Member

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    What about buying a house near a uni and renting it out (per room basis) to a couple of PHD or overseas masters students ?