VIC Investment Grade Suburbs - 750k budget

I'd like to borrow it too please

 

$250/hr, I'm happy to rent it out. Its a bargain.

 

1 of them has been okish. slightly below market increase that's because i bought it at the peak of a cycle. Bought at 350 and not sitting at 500k in 8 years
2 of them really well, 10% each year CG - Bought them at 320 each and both sitting at 450k in 3.5 years
4th one is very new so can't say much

All of them are giving me 3.5-4% yield (gross)

 

Are you just being sarcastic ? Or do you have a genuine suggestion hidden in that message?

 

Me sarcastic? common now...


Seriously though, there's no way you can be certain about anything in life, other then death and taxes (even taxes is debatable).

So to definitely know you can have X amount of growth in X amount of time - is impossible, hence crystal ball stuff.

My message is do not only wait for growth. Allow your asset the greatest chance to do well by 1. be very selective and buy well, 2, buying in a high demand area (or could be high demand area) and 3, be able to add value to manufacture equity.

Now I know this wont suit everyone, that's fine. But imo its a great way to allow your asset the best chance to outperform.

 

Hi Sash,

Any pointers on specific areas to look at in Melbourne or Geelong in the 650-700K range?

 

Now you've changed your time-line from 7-10 to 10-15. To be honest, growth is not linear. There's no set formula, no crystal ball. If there was, we'd all be a lot richer.

It is more than possible to do...BUT...conditions need to be right.

For instance, you are looking at buying ONE property for around $750k with maybe 3% yield, right. Well unless you are on a huge salary and have bucket loads of equity, that won't cut it. What if you looked at something like this? 3 Dyer Ct, Traralgon, Vic 3844 $185k, rents for $215pw.

Just note: This is not advice! I've done no due diligence. I found this in 2 minutes.

You could get three like this with change for your $750k, with a higher yield as well.

What you need to understand is that Australia is a big place. People all around this country rent. So when you make a statement like 'investment grade properties', it is meaningless. You need to stop looking at things that YOU would live in, and suburbs YOU would live in, and start to look at things that SOMEONE would like to live in. By that I don't mean throw caution to the wind & buy the cheapest crap hole you can find, but if you are looking to a price point in an area that you can afford/want to purchase in, then look for things that are attractive to people, transport, schools, shops etc.

Banks ARE tighter than they used to be, but that doesn't mean you can't do it. You may have to look outside the square. Can you reno? Build equity into the property, or flip & throw the profits to the next one? Granny Flats can increase rental income, but are not allowed in Victoria. That still leaves a heap of places they ARE allowed, if that's something you'd like to do. New builds can work, in the right area.

I've made a lot out of reno's & buying in cheaper low socio areas. @sash has done H&L packages. There are many ways to skin a cat.

 

When student is ready the teacher appears?

Other things is stop listening to all the BS being perpetuated with people who have something to sell....

 

So where are we all buying this year??

 

Australia

 

Like you said, its a big place, where exactly skater

 

I will sell her a few of mine to begin with

 

Gee, if I told you, I'd have to kill you, you know.

 

Hey there! Skater... so funny. I actually viewed around to 3 Dyer Court the other night. Well... when the figures suggest something you probably should listen, right.
So $185, 000 (probably offer less than this and you would still get it, due to the view, and the area is sketchy but not horrible).
It would rent for $240-$250 a week... because this is a very strong rental market at the moment. That is 6.75% gross yeild.

You would need to get the current renters out, do a 'refresh' and pop it back on the rental market. The renters are the winners here, as they were able to lock in a rent for $215 for almost a whole year! They get it for that until November 2020.

Ummm... vacancy rates? Not an issue really. There is a whopping 10 properties in the rental price bracket between $200-$300 a week. There is a lack of supply and a demand for properties in this bracket.

We are looking at this market closely and have popped an offer on a similar property, in a slightly better area.

 

could you please share how you were able to find that specific information so easily ?

 

There isn't one specific place. There are some paid services that will give you are suburb score. All this data is useful to assist in narrowing your search. But you won't find data specific enough to guarantee you get the perfect suburb for future gains.
It's easy to see data about past and current performance, but that doesn't always translate to future growth.

Both Realestate.com.au and Domain offer detailed suburb profiles online for free.

Checkout Heatmaps | Real Estate Heatmap Sydney NSW 2016-2022: house prices, growth, new developments, schools, crime, income you can see things like rental yield heat maps etc if you adjust the layers.

A lot of SQM data is freely available online. You can see nice charts there about things like days on market.

You could pay for something like this LocationScore

Lots of iptioy

 

realestate.com
I owned one there. Sold just recently for $325, so if the OP had bought three there at the time of the original post, he would have made some decent coin.

 

I am aware this but you have to go in each suburb profile to get that info on RE. I haven't used Domain so much yet. Hence, I was curious how skater was able to quickly find a property with such a high rental yield so quickly. So I was curious whether skater knew some tool that allows directly looking for suburb/property with high rental yield or knew the area already. From skater's reply, it seems it was more of a case of the latter.

 

thanks for clarifying