where to buy 2 properties for 600K

Hi All, got preapproval for about 500k loan with 100k deposit (600k total) and looking to purchase 2 properties consecutively. So looking at around 250k to 300k. Understand that a house for this price is probably not an option (or is it) . Will consider anywhere in Australia with good growth potential and decent yields. I have 2 IP and 1 PPOR currently and looking to add 3 and 4 IP then onto 5 and 6 hopefully by year end/early 2022, with the intention to accumulate more in 2022-2025. Will be using own savings for 5 and 6 (300k). Can anyone suggest any areas to Targett or avoid? Good yields would be preferable. Does this strategy sound decent ? Goal is to have 8 to 10 within the next 5-7 years. Thanks

 

Hi Brett
Most areas that you find in this budget might have to be avoided. Please focus on tenant quality as well.
Start look into SA and WA.

Regards

 

Logan you will just scrape in for under 300k (houses) but I don't think for much longer based on the current strength of the market. Any house away from main roads and flooding you can pick up for 300k I would grab asap. Sounds cheap - $300,000 for a house in a capital city within 30 mins drive of a CBD!

 

focus on quality and total gross amounts, not the number of properties?

 

any postcodes you could recommend mate ?

 

Thanks mate, any post codes you can recommend. I actually have a place in Logan currently Waterford West 4x2x2, that I bought about 5 years ago. It basically didn't go up at all until recently (only a small amount). But can we see the same growth in Logan that we've seen in other areas of Brisbane ?

 

Fair enough mate, just trying to build up a bit of a foundation portfolio at present. Would you say in my position securing 2 quality places for my budget is good. Not saying that I wont to buy cheap places for the following purchases

 

I like Woodridge, Kingston, Logan Central and Slacks Creek. It's hard to beat these locations (circa 300k price point) for access to shops, bus and train transport and access to the city and the Gold Coast. Surrounding suburbs like Springwood and Underwood are steadily increasing in price and in most cases a lot more expensive.

You could also research Beenleigh and Eagleby.

May I ask the purchase price and land size for your Waterford West purchase?

 

Super surprised by suggestions of woodridge Kingston and Logan Central.

But then again Eagleby doing surprisingly well which I never saw coming.

Any caveats? Or do u think all of Woodbridge Kingston etc is fine.

 

What about Ipswich? Eastern Heights, Silkstone.... Great tenant demand, good returns and solid growth of late.

 

hi mate, I will take a look at these areas. I did say I’d never buy in Logan again after the last poker tu doing nothing for 4 years and other areas going io 50% or so . the block size is 650m2 and I paid 340k for it back in 2016. Basically stayed pretty stagnant for a good period. Don’t mind as I’ve got good tenants and have seen some growth in the last 6 months

 

Hi mate I’ll take a look. I thought Ipswich was to to avoid ? Not to sure on the other areas. So are we thinking SE Qld in general or is there other states you’d look at ?

 

I would buy 1 decent property in a good location on the Gold Coast with that budget. Crazy to want 8-10 properties - imagine the headaches and vacancy rates you'll have if they're all in rubbish areas.

 

Sounds like it could be 450k now and a good yield along the way.

 

Don’t necessarily want all in rubbish areas, just looking at 3 & 4, in perhaps the lower end of the scale areas. What’s a good location mate

 

Yea that’s what the agent said and it rents for $420 now so pretty happy it’s going ok

 

You can get this for K600 - Linky

Or Lanky & Winky

 

Saw some 2br units walk to Blacktown station for early 300k on domain just then
You probably want to do a cosmetic Reno before renting out to maximise yield
Not sure about CG though but at this price point if it goes up to 360k which surely is not that untenable that’s 20pc increase and matching your deposit

 

That sounds interesting, Sydney would definitely be my preference but I just thought the price was out of my reach. Do you have a link to the ones you saw ?

 

could you recommend any areas in SA or WA, why do you say these two states may I ask?