Help me pick a property to buy $350k budget

Hi everyone,

I am trying to buy an IP and need some help. I have read a few threads on this topic and am still confused and just wanted to get some information.

I have a PPOR currently in Perth which I bought about 6 months ago and a small piece of land in Melton, VIC which I bought about 4 months ago. The land in Melton is growing at an increasing pace and has give me good returns but the property in Perth has not grown so much.

I am currently thinking of buying a place and have a budget of max 350k.

I have been researching a bit about Melbourne, and it seems the Melton/Bacchus Marsh/Darley areas are still affordable enough to buy in but the constant >20% yoy growth over the last few years is making me suspicious that the Melbourne property market is becoming over-inflated and the prices of any IP won't hold up long term (approx 10 years).

Perth is still a buyer's market and the property prices here, it seems like have bottomed out.

Can you please advise on a good place to invest that might have some growth potential in the future, and is backed by good economic fundamentals?

Thank you.

 

Welcome to PC! You might find something in/around Geelong for that price or in the 'Rat.

 

I’d probably say Melton, or a 1-2 bed unit in a small block of say 6 or so in Melbourne suburbs. Only reason I’m saying units is because that’s pretty much all that’s left under 350k, and they are even getting harder to come by under that price, I think the houses becoming unaffordable will push up unit prices in the short term.

 

Geelong and Ballarat are def a good place to look.

 

Land in Melton is giving good returns?

 

A 1 BR unit in Melton. Haha are you joking me?

 

That’s definitely not what he meant.

 

Hi @SamA1. Welcome to PC.
What was behind the decision of your last 2 purchases? How did you arrive on those locations and investments? Just curious as they are both quite recent and you seem eager to go again very soon. Be sure to take your time, your next step is always the most important one.

 

I said either house in Melton or a unit in any inner suburb. What’s so funny?!

 

I didn’t say 1 bed unit in Melton.
I said house in melton, or a 1 bed unit in inner suburbs with a courtyard. I’m trying to get one of these for a relative at the moment who’s priced out of townhouses and houses, and I’m noticing the market has moved a lot and it’s a hot market for good stock.

 

My mistake. Apologies.
I agree 2 BR 70's blonde brick in a complex of <6/8 as close in as possible would be best bet.

 

all good

 

For that budget - you have a couple of options in Geelong such as Corio/Norlane/Whittington and Newcomb if you're lucky. You'll be looking at getting an existing house on a block of say 500 to 600SQM which require some tidy up but in general should be achievable. Note you will have quite a of competition though.

The other option is to go QLD - have you thought about this as an option, and at this point you'll have much better yield than VIC so it'll be easier to hold long term?

Cheers,
David

 

Looking into Qld or Adelaide would be a good bet. Adelaide is steady rather than booming (always steady never booms) but Brisbane does have large surges - used to be every 7 - 10 years in the old days, but in this modern global world the rules have changed. In the South East of QLD (Logan, Ipswich, Hinterland of coasts - sunshine and gold, Redland and Moreton Bay) you can still buy property with some land size and an old house for your budget - i am not sure that elsewhere that is true, except for maybe Adelaide. Queensland has projections for very large increases in population, particularly in the South East. And with Gold coast reaching epic proportions (relative to what it used to be) i think it is fertile ground up here.

In terms of economy and growth SEQ is better than Adelaide, but otherwise both areas will be suitable for your budget.

I am not sure why you would think of Vic first with your budget, although if you have a property there you are probably well appraised of the market there.

Make like a cane toad and come to Qld

 

Unless you absolutely know your market in Melbourne, I wouldn't buy there as an interstate investor this late in the cycle. You might still get lucky or not.

If you are talking long term growth, I would take my time, research well and start making low-ball offers in Perth and/or Brisbane. There are two ways to make money - when you buy BMV or sell with growth (either from a boom or long term CG). You have no control over long term growth/boom cycles. It all comes down to the the type of investor you are.

 

@SamA1 what do you define as good economic fundamentals?

 

@David Shih which areas in QLD will you reccomend? I agree QLD has a lot of potential but need to get the area right . Logan and Pimpama have over supply so won’t reccomend going there.

 

For around $350K budget:
North - Moreton Bay region like Kallangur, Lawnton - plenty of threads on this forum that talks about these areas
South - Logan region like Marsden, Crestmead, Browns Plain/Regents Park/Boronia Heights. These are more OO appeal areas and land is limited.
West - Goodna or Ellen Grove. See Change has a big thread about Goodna but in general watch out for the flooding areas.

 

You can certainly buy a house in Logan (SE Brisbane) for that price. You would be getting yield, and decent growth with new schools popping up in that area.

Kind regards,
John

 

I am going to throw something out from left field: a two bedroom unit in Wiley Park, Sydney. 18km from the CBD, and along the new Sydney Metro line that ends in Bankstown.

It meets my investment criterion for a unit, and they are redeveloping the station and commercial area by 2024. Re-zoning imminent along with the extra interest that will bring.

Area is a little bit rough, but investment grade at that price in my opinion.

I bought for myself there a few months ago.