IP 500k australia wide! where?

so i'm on the hunt for a second IP, and since i'm living overseas (won't return to aus for a couple of years) i don't really have any bias towards any region in particular. when i've decided on a region i will use a buyers agent throughout the whole process (did the same with my first IP). i already have an IP house (4br 600sqm) in northern brisbane.

i'm investing for the long term. preferably a house with good chunk of land in a promising growth region and hold for a long time. since i already have an IP in brisbane i like the idea of diversifying into another city, but have no idea where to start looking. so i'm asking you to ask yourself if you had no geographical restrictions within australia, where would you invest for the long term with a 400-500k budget? i'm open to any region if there is a strong case for growth in the long term.

 

Have a look at the thread
Post a bargain Perth, this market is now starting to recover

 

For 400k-500k id be looking into geelong where possible. Also Moreton Bay region of brissy

 

Geelong for sure.

 

Curious why you're so bullish on Geelong?

 

why geelong? what drivers do u see for long term growth?

 

why geelong? already have an IP in the moreton bay region so looking to diversify

 

I'd use the search function on this sight, many more knowledgeable people than myself have explained it better than I could, however with population size and proximity to Melbourne mixed with decent yields and solid growrh I think it would make a strong and easy to hold investment.

Just my 2c

 

My $0.02 for resi property in Australia would be.. (for a sub-$500k purchase price for a purchase being made within the next 6 months; and of course without knowing much more abour your goals, long term strategy, life cycle stage, income/tax situation blah blah blah - so caveat of course this isn't specific advice! Just generalist thoughts on what to me would be good and what to avoid). Also: I've assumed you are seeking 'tolerable' yield/not too negative cash flow; and the prospect of decent cap-growth over the mid term outlook (i.e. you expect to realise cap growth within decade #1 of ownership):

Best/strongest prospects ($500k cap):

- Inner Brisbane townhouse/villa or lowrise-large-land-size 3-bed unit
- Middle ring Brisbane large townhouse in small block; or modest small single family home (house) with some cosmetic reno opportunity upside
- Inner Adelaide (south east suburbs or inner west) large townhouse or duplex-half
- Middle Adelaide single family home (house) with cosmetic reno upside or (If you're lucky) future subdivision potential. Or anything character in these areas (i.e. maisonette architecural style that will retain long term mass appeal and scarcity)
- Curveball here but for me; i truly think northern NSW (not byron itself you cant afford it plus im not sure theres much upside) but key pockets of the wider 'byron region'; will have tremendous upside in the decade ahead. A confluence of general work-from-anywhere demand by 'working age' X's and Y's; some rental appeal by upcoming Z's; along with independent-living aging Boomers who are still a decade or two away from assisted-living/retirement home age
- As others have said; Geelong has merit but I also think the other VIC hub cities of Ballarat and Bendigo are worth a look for your budget and growth ambitions
- Perth (caveat I have zero personal exp in this market and don't follow it but I trust and endorse MTRs comments as she knows this market expertly and has been watching it like a hawk for years).

Avoid like plague (in my humble opinion):

- Sydney all (even with a higher budget i don't see the value in either cash-flow nor capital growth prospects)
- Melbourne most (exceptions: further down towards mornington peninsula/outer SE suburbs)
- Darwin (despite current flurry of positive growth, it's temporary and no long term drivers).
- ACT all (yes it was the star performer /darling of last couple years but I think that's it. Mind you... Queanbeyan, NSW; on the border which is really a suburb of Canberra located in a different state; could be worth a look)
- Tasmania all
- Gold Coast (I know I said yes to Brisbane and northern NSW but the GC stretch in the middle I wouldn't touch)
- Most other regional areas around the country.

 

Rochedale South