Investment property under 500k March 2022

Discussion in 'Where to Buy' started by Jfet, 14th Mar, 2022.

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  1. Jfet

    Jfet New Member

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    Hi

    My partner and I are looking to purchase an investment property for under 500k. Any recommendations? I have read a lot of the earlier forums about the greater Brisbane and Moreton Bay region but am looking for other ideas. I am open to suburbs in any state. From previous experience, we have been successful with purchasing a coastal suburb so would be interested in coastal suggestions.

    Any advice would be greatly appreciated!
     
  2. alxa

    alxa Member

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    Perth
     
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  3. See Change

    See Change Well-Known Member

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    Perth , North Q'land - ( Rocky , Townsville - Mackay / Bundy I don't know that well ) - Personally wouldn't buy an IP in Cairns as too dependant on tourism ( but might buy a winter bolt hole in Palm Cove in the next down turn ..:cool:) . Gladstone - risk on being a basket case again ??


    Cliff
     
    Last edited: 14th Mar, 2022
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  4. Squirrell

    Squirrell Well-Known Member

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  5. thunderstrike888

    thunderstrike888 Well-Known Member

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    Brisbane and surrounding councils pretty much your too late at that price bracket. Forget Moreton Bay everything is way above $500k now.

    Logan there are still 3 bedders in the mid 500s still if your lucky to find any. They will need some TLC. I'd say in another 3-6 months there wont be anything in the $500k mark. All 3 bedders will have a "6" starting with them.

    I'd say you got another 3-6 months of time for Ipswich before everything there also becomes > $500k there as well. Many places are already above this price.

    Brisbane done about 4% growth in Jan and Feb. I'm expecting another 1.5%-2% in March as well. Just say we have 1.5% growth every month for the rest of the year + the 4% we already had thats another 19% for 2022. Better hurry up!!!
     
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  6. Melbourne_searcher

    Melbourne_searcher Active Member

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  7. virhlpool

    virhlpool Well-Known Member

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    Won't interest rates hike put a brake on it along with the growth in all other cities?
     
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  8. thunderstrike888

    thunderstrike888 Well-Known Member

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    No I dont believe so. Interest rates is only 1 part of the equation.

    Stock market performing horrid now. Lowest its been in ages especially if you play on the Nasdaq. Quantitative easing and inflation has caused whatever that was $500k be worth now $800k so effectively devaluing your money bigtime. Government printed trillions of dollars, interest rates going up doesnt all of a sudden make all this money disappear. Far far far from it.

    There are no other investment mediums except businesses you can invest that is seen by the majority of ppl as safe haven investments like real estate. Pretty much the entire globe is having a property boom. Australia wont and will never be the first to reverse it as long as global economics remain as it is. Canada, US, UK, Germany, France etc... every single 1st world nation is booming and is till rising and so will Australia.
     
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  9. See Change

    See Change Well-Known Member

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    No , certainly not initially . Given we're at record low interest rates. Those of us who have been around long enough to remember , when rates were at record heights , people were buying so they could lock in rates before they went up further . We were lucky to lock in at 12 % .... and for a while prices kept on moving up . Eventually they tanked but it took a while . That was the recession we had to have .

    Cliff
     
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  10. virhlpool

    virhlpool Well-Known Member

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    So when do you see this happening in the current scenario?
     
  11. See Change

    See Change Well-Known Member

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    At the moment I dont . Not in the next 1-2 years , but the last 2 years have been so unpredictable , who knows ...

    I can be as certain as I can that Perth is likely to out perform Sydney / Brisbane in the next 5-10 years . Brisbane might out perform in the next 1-2 years shorter , but I expect Perth to out perform in the medium term . It's only just taking off at the moment so there is still time to pick and choose . We looked at two properties in last few days . One has just gone under offer - three bids . One no bids ...yet . We've been active in markets at times markets took off and it literally can change in a couple of weeks . Don't think it's there in perth at the moment , but you never know.

    If you look at the goonda ispwich corridor , most properties are getting 80 groups through and having 25-35 offers and selling 40 K over expecations , and that expectation was set a couple of weeks before and that one sold for 50 K above expectations ...

    The thing that's going to limit prices is affordability . We wouldn't buy our current PPOR if we were buying now . Paid 1.1 and probably worth 3.5 now . so so house in reasonable location in Turramurra .

    At the moment 400 - 600 is affordable for many people , but I think you get better value in perth in that price range than you do in Brisbane.

    Cliff
     
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  12. See Change

    See Change Well-Known Member

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    BTW , I'd much prefer to be buying in a market wher there are 0-3 other interested buyers and the market is below previous high than one which has 25-35 bidder and has gone up over 80 % since previous low . IMHO Brisbane's still got some way to go so if you already own there , IMHO it's too early to sell.

    cliff
     
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  13. TAJ

    TAJ Well-Known Member

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  14. Nathan Prasad

    Nathan Prasad Well-Known Member Business Member

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    Hi,

    We are purchasing alot of properties within that budget across Logan in Brisbane - Hillcrest, Boronia Heights, Crestmead, Marsden. We have achieved $100k equity in the space of 4 months for 6 of our clients. They roughly made $8k per week. Try aim for 4 bed 2 baths. My recommendation is always to build solid agent relationships so you can get the off market properties. This will help you negotiate a better purchase price and build instant equity.
     
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  15. momentum26

    momentum26 Well-Known Member

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    Seriously? I’d be dancing if that’s the case
     
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  16. thunderstrike888

    thunderstrike888 Well-Known Member

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    I'm already dancing now but as soon as the numbers start with a '6' for basic 3 bedders which they will I really need to consider my retirement plan and start executing it.

    We aren't talking $100-$150k anymore. We are talking $300k+ on each property. Times by 4 and that becomes serious money.

    I'm just waiting because from everyone I'm talking to (well the people I consider very astute investors) they are all saying if inflation gets worse the prices will continue to rise.

    Leaving interest rates out of it - when materials, labour and building costs skyrocket its impossible for houses to drop in price. Compound that with huge shortages in Brisbane/Logan/Moreton Bay everyone is telling me its going to keep rising in 2023 and even possibly 2024 albeit at slower rates.
     
  17. Whitecat

    Whitecat Well-Known Member

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    I would be very careful about North Queensland it really needs a mining boom. Otherwise there's not much drivers really. Is you point out with Gladstone a lot of those places Cairns Rockhampton and all of that really dived after the GFC and the end of the mining boom.
    Remember all of those advertisements every month at the back cover of Australian property Investor advertising off the plans and Gladstone Mackay and so on?
    I mean maybe the timing is ok and it's time for North Queensland to have an upswing but I would see a mining boom as necessary but hey who knows
     
  18. Whitecat

    Whitecat Well-Known Member

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    I agree I think it's a bit late to be investing in Brisbane but good for those who already have property there. I think Perth with it's cheap price point and good yield is the best bet at the moment
     
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  19. See Change

    See Change Well-Known Member

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    Can you tell us how many clients you've bought properties for in the past who haven't made that type of gain in the four months after they've bought properties with you ?

    Picking that degree of growth and buying just before it occures comes down to a large degree to luck .

    Anyone who's held properties in this area has made that sort of money in that time frame . Anyone who thinks they can pick the time that that growth occures and suggest it's reproducable is deluding themselves ( no , you didn't suggest it was reproducable ..) .

    It doesn't surprise me it's happened , but it could have occured 3-4 months earlier or a year later . I'm quite happy it's occured . We hold multiple properties in the area .

    Is it going to happen in the next few months ? It might . but sometimes a quick jump like is only with a few properties and it takes a while for the " market " ( banks / valuers / buyers / sellers / agents ) to adjust to it . Valuers are reluctant to adjust their values that much in such a short time frame and there's only so many cash buyers out there .

    Cliff