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Looking for advice on my next purchase

Discussion in 'Where to Buy' started by B-Mac, 26th Aug, 2015.

  1. B-Mac

    B-Mac Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    58
    Location:
    Sydney
    Guys,
    Looking for some feedback on my next play (in about 6 months’ time).
    Currently have 1 x IP in Brisbane (2bedder, inner west) which is pretty much CF neutral.
    I have been doing the figures on properties sub $200k in Elizabeth SA.
    Positives:
    Ø Low entry price
    Ø Add value via immediate cosmetic reno
    Ø Yield 6.00+% (possible 7.00% yield after reno)
    Ø Potential subdivision later down the track
    Ø Bottom of the property cycle
    Negatives:
    Ø Adelaide has poor predicted population growth
    Ø SA economy weak
    My thoughts are the ‘negatives’ are cyclical and one day (maybe when government changes hands down there?) will eventually change for the better.
    Purchasing at/or below market value, then creating value via cosmetic reno & then holding seems to be the best strategy here?
    Thoughts?
     
    D.T. and Be Developer like this.
  2. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,713
    Location:
    Sydney
    imo it depends on your financial situation/goals. Wouldn't make much sense to me for a couple on 200k net income a year, buy 1, 200k property in Adelaide.
     
    Be Developer likes this.
  3. B-Mac

    B-Mac Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    58
    Location:
    Sydney
    Single, Early 20's, circa $80k fincome for 2016FY

    Just about to move out of home & spend the rest of my disposable income on rent and, as such the property must be at least neutrally geared, CF +'ve even better (hence hwy Elizabeth, SA caught my eye).
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Sydney
    Gotchya! If your looking into Adelaide @D.T. is one of the people who I think knows it well and done well there mate.
     
    D.T. likes this.
  5. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    Stick to Brisbane or Melbourne with that budget.

    On your due diligence, negative wipes out most positives.
     
    Leo2413 likes this.