Cheap Suburbs with Capital Growth + Ideally Positive Geared

Hi All,

Wanting to get an investment property on a budget, say 300K approx. maybe less, maybe a touch more. Something like a 3 bed house or townhouse.

Wondering which markets will could get best capital growth and also ideally cash flow / postive gearing?
Thinking about these areas and starting research... Adelaide, Hobart, Rokeby, Launceston, VIC - Geelong outskirts eg. Whittington, QLD (not sure where,) eg. Brisbane, or OTHER AREA anywhere in Australia. Open to ideas... I live in Melbourne so I know a bit about Melbourne market, but far less about TAS, SA and QLD.

Comments, suggestions, ideas please.
Geelong is too expensive - so looking at surrounds. Same as Hobart is getting expensive for a small city, but Tasmania has lots of bargains I think.

 

I personally don't mind the idea of purchasing an IP in Launceston around the 300k mark.

Wouldn't be a bad idea to check out the suburbs close to the new University of Tasmania development (Invermay, etc).

Still get reasonable yields in Launceston, so should be neutrally geared with a small deposit.

 

Why is your budget limited to 300?

 

Probably could go higher but I feel that in Launceston buying a property around the 300 to 350k mark and renting it out for say 380 a week is a good long term set and forget play.
But that's just my opinion.

 

Something like the below is what I would be looking at

1 Calais Street, Mowbray, Tas 7248

 

What are the capital growth drivers in or near Launceston?

 

The risk is that the focus on cashflow means you ignore the differences between cities. Tas usually has a higher yield than syd / mel. Just because tas is cashflow neutral doesnt mean it has good cg prospects. This is what caught people out in the mining towns.

 

Outer suburbs in Adelaide you can get positively geared property for 300k. Suburbs around Morphett Vale in the South and Salisbury in the North, which are both approximately 20km from the CBD (Morphett Vale is more like 25km).

 

Cheap suburb, Capital growth, Positively geared. You can pick any two but not all 3

+ve gearing is the difference between 5-10% deposit and 15-30% deposit, it's just a tax outcome so I would be more focused on Capital growth as the #1 driver behind any investment

 

@croseks I'll choose captial growth and cheap... I have always been a fan of capital growth as primary selection criteria.

 

@2FAST4U Where would be best for capital growth in Adelaide for 300K approx?

 

$300K would get you a nice IP in Toowoomba ...

 

You can get something reasonable in Logan or Ipswich for $300,000, but bear in mind you'll also be buying something that will need work.

 

Look around Salisbury the closer to the CBD the better. If you can push your budget a little past 300k look at areas like Pooraka, Ingle Farm and Para Hills.