NSW If you had a budget of 1.1 million

If you had a budget of 1.1m, where/what would you buy?

I am looking for a short term investment (around 1-2 years)

Initially, I focused on houses near the new metro line, but I've also been looking into smaller run-down terrace houses closer to the city that I can flip. Then, I've also been thinking apartments/units near the beach may be a good investment. I am a bit lost at the moment so would like to hear your thoughts.

Please feel free to mention any areas I have not mentioned above!

 

I'm doing similar with 1 recent purchase and 1 on the way. Just understand it's moderate level speculation. Nothing wrong with that if it meets your risk profile.

You need to look at areas with big price gaps from renovated/new to old stock where the reno will add significant value. Has to be structural. And likely able to add sqm.

Can't recommend areas as I'm actively buying, but I'm looking at 4mil deals. Do some research.

Also, you'll likely need to get it off market. Probably within 24h of agent showing you.

 

Unless you plan to value add, 1-2 years is high risk given the costs.

 

1-2 is a short investment horizon. You’ll likely not come out on top unless you ride a massive housing boom. Once stamp duty, transfer costs etc are taken into account you will be starting off from a big loss in capital.

 

Yeah, maybe a complete reno or something..

 

I totally understand where you're coming from. I have another property I bought in 2014 and after 7 years, I've only made around 600k profit. A close friend to me bought a house in the north shore and recently sold it for 600k profit after just 7 months!

It just made me realise maybe I was wrong to hold onto a property for so long...

 

The costs of getting in and out of an investment in that short a time span will usually eat up any profits. You'd need to be very sure of yourself, to attempt this.

 

I was about to say. Using property as a short term investment vehicle is potentially costly but as we’ve seen in the last 18 months there was life changing gains to be made in most asset classes. Biggest wealth transfer I’ve experienced