Where to buy 1st IP in Australia for under 450K

I hear what your saying but its like anything man.. builders..brokers, agents.. some a great and many a terrible. Just need to do your research and get good recommended ones and know all the fees upfront then make an informed choice.

 

Morrisett is North of Sydney. Past Gosford approaching Newcastle.

 

Hi @Tom Rivera , i have heard from close friends about longer vacancy rates even though rent is as per market. I am talking about last year when I was looking to get around Mango hill area , so ended up buying in Melbourne.

 

Thanks Y-man

Some of them look like pretty good value I suppose. I was really kinda hoping you had found some gem in Kew I had missed LoL (Essendon is a bit far from family etc as we're based in the North East)

 

That's a fair decision, I hear Melbourne is pumping along nicely. I can't comment too heavily on the northside because we have a limited experience there, but the south side is doing well.

 

I would look in Sydney, about 15km from the CBD, on the train line of course. You should be able to pick up a decent 2 bed, 1 bath with garage within your budget fairly easily. With a solid 4.5% yield.

 

For IP, 4.5% yield with all other expenses isn't 'solid' in today's age of ever increasing interest rate. It will need a significant contribution from pocket towards loan repayment every month. Happy to be corrected if wrong but even 5.5% yield is not making the cut well these days when you add property management (including letting fees, advertising fees and so on), council rates, insurance, and other expenses to already high interest rates. 'Solidity' that you refer to assumes good and consistent capital growth which can be unlikely, who knows.

 

Thats fine i can correct you, no problem. The term solid as i stated refers to the yield not the investment. When i say a solid 4.5% yield I mean that this is not the higher end of what is achievable, this is mid range and thereby relatively easily achievable- hence solid reference. Moving on, not sure where abouts in Sydney you own or invest but 4.5% in Sydney is definitely at the higher end of the scale at the moment. Can you get higher yield in other capital cities? Ofcourse, easily. I can buy in a regional town and get 9 or 10% or more but am i gonna buy there? No.

 

You seem to be defining solid as neutral cashflow. Thats unlikely in sydney. You can say the market is too expensive but sydney hasnt been cashflow neutral for at least 5 years. How has cg been? You can say but now rates are increasing. Ok but how good are your predictions?

 

You should be buying before it picks up! Property investing 101

 

Yes but not while its still in decline. 5o'clock is not a buying time

 

I dont rely on property clocks... I'm a little more sophisticated than that

 

Yeah ok cool but the OP has said that his own research puts Perth at 5 o'clock- so its not a buy

 

You must be tracking the Euro timezone.

 

Right now Im busy tracking the tradies/renovation time zones ....

 

The point I was making was that its prudent to be a little ahead of the propertyclock. That data is several months in arrears as its a HTW report that relies on settled sales.... Whether Perth is a suitable buy for the OP is a different argument for another day. But waiting until a market receives a HTW property clock green light means you are a few months behind the curve.

 

Whatever they say add 30-50% time on top..