What and where to buy for under $500k?

For short term capital growth, I'd be looking closely at Units/Townhouses in Rooty Hill. Currently, demand is outstripping supply, however it is a risky area as it's surrounded by some undesirable suburbs with plenty of housing commission. Rooty Hill itself is quite low though (under 6%) so as long as you pick areas that are far away from those streets, you'll mitigate that risk. Currently, 3Bed Townhouses are starting at under 500k, https://www.realestate.com.au/property-townhouse-nsw-rooty+hill-130540098 which I think is great value. Rooty Hill is a little further away from the city (~37kms) though. It has a lot going for it with 4%+ yield, days on market is decreasing, not much stock on the market (0.41%!) very low vacancy rates, and minimal vendor discounting. These are all levers that point towards upwards price movement in the near future.

 

A house in Townsville (North Ward or Belgian Gardens) might be a reasonable prospect. You might get a positive cash flow now and the property market has already had a major crash so prices are low now and showing some signs of starting to recover. The downsides are that regional city economies are always uncertain and tropical properties require careful maintenance.

 

What do you consider walking distance from the station? Most of the apts around North Parramatta are on average 2 kms walk. Is that considered walking distance?

 

Too far. That's like a 25-30 minute walk each way.

 

There is a LOT more information needed before you start considering locations.
1. What is your investment timeframe?
2. What are your property investment goals?
3. What is your appetite for risk?
4. What exist strategy do you have in mind?
5. Consideration also needs to be given to your current income and stability of such at this time
6. What is your overall property investment plan?
If this is the first property that you buy, you need to understand all of the above to make the best decision about the investment requirements (ie: balance between capital growth and yield and also if manufacturing additional equity will form part of strategy).