NSW Where to buy 250K - NSW

Discussion in 'Where to Buy' started by gach2, 10th Nov, 2019.

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  1. gach2

    gach2 Well-Known Member

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    Its just a hypothetical

    NSW only

    Any places you would recommend where a house (even a rundown on a small lot) could be purchased for around 250k which has good potential (both in future capital and current cash flow)

    More CF based that CG but towns where its possible to buy at 250k ad reno and get 300pw rent and even with the potential to ad a granny flat.

    I know the days of 250k in most major regionals have gone but is there still any towns that could have potential (maybe going unto 300k)

    Interested in towns that have steady growth than ones in decline due to failing industries etc
     
  2. Archaon

    Archaon Well-Known Member

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  3. Shogun

    Shogun Well-Known Member

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    Light, strong, cheap. Pick any two.

    Cheap purchase price, high cash flow, potential for good capital gains. Pick any two?
     
  4. Willy

    Willy Well-Known Member

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    Ok,I'll take high cash flow and good capital gains.

    Show me where?

    Willy
     
  5. Edd

    Edd Active Member

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  6. Willy

    Willy Well-Known Member

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    Inverell- Purchase price $200k in 2015, rent $300/ wk ($10 under market) Current value $270,000.(bank valuation)

    Other towns that I looked at were Parkes NSW and Warwick QLD.

    Wouldn't want to fill a portfolio with them due to lower CG potential but for low purchase price, good cashflow and reasonably diverse economies for their size.

    Willy
     
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  7. Thedoc

    Thedoc Well-Known Member

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    Keep saving until you can afford central coast. Regionals set you back not forward.
     
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  8. gach2

    gach2 Well-Known Member

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  9. gach2

    gach2 Well-Known Member

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    I understand can't always get what what I asked but decent cf plus towns that are not going into recession might be a better way to put it
     
  10. gach2

    gach2 Well-Known Member

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    Don't know much about Inverell but how are you finding holding it? vacancy been an issue etc?
     
  11. Willy

    Willy Well-Known Member

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    Had a change of tenant every 12 months and there has always been a new tenant waiting to move in.
    Vacancy rate is something you really need to watch with smaller regionals though. Some of the towns I looked at had yields of 10-12% but when you dig a bit deeper those houses had been vacant for months between tenants.

    My basic parameters were-
    Purchase price under $250,000
    Min population 10k people
    Population must be growing
    Vacancy rate must be under 2.5%
    Gross yield must be over 7% (it was at time of purchase but my regional CF property has actually had good growth! CG west of Hornsby, who would've thought?)

    Once I found all those things I bought at the median price for the town to try and avoid tenant problems. You don't want to be buying too far under the median in smaller regionals.

    Willy
     
    Last edited: 11th Nov, 2019
  12. gach2

    gach2 Well-Known Member

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    Thanks for the reply,
    Yea looking for towns with low vacancy rates (maybe even a shortage of houses so a granny flat could be potential)
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    @gach2 You can always find somewhere cheap around Wagga - Linky, you'll even have change to pay for remediation. There's even more change with this one or a bonus buy.

    As for willingness of banks to lend.....
     
  14. gach2

    gach2 Well-Known Member

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    Can pay a bit more than that - heard the horror stories of Ashmont
    Was just seeing what available

    As @Archaon had mentioned Cessnock seems to be ticking all the boxes at this stage to $250k seems to be a minimum - Any other opinions of Cessnock? Cant see too much information on here about it
     
  15. wilso8948

    wilso8948 Well-Known Member

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    Why NSW only?
     
  16. Nicho

    Nicho Active Member

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    I spent last week staying in the Hunter Valley and we drove around Cessnock.

    Me and my partner both commented how dated the buildings in the Main Street were. The houses in the streets we drove around town were also the same.

    But 5 minutes out of Cessnock all the beautiful wineries and accomodation start. The Crowne there is huge and you see a lot of big houses on big blocks in between the vineyards.

    You’d have to think it’s only a matter of time before the tourist money creates some gentrification in town?

    Or will people continue to want to live out of town and travel in for there daily needs?
     
  17. gach2

    gach2 Well-Known Member

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    Definitely agreed,

    Can also see potential for people wanting to be arms length to the Hunter Valley but not having to worry about the maintenance of a large semi rural property
     
  18. Edd

    Edd Active Member

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    Yes, lot's of cottage style properties but what concerns me is closing down of shops every few months. Been eyeing on the area yet for 50k more you'd probably find something closer to Newcastle. It is a potential for sure.
     
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  19. Luke T

    Luke T Well-Known Member

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    Orange ?? You can buy for $140-$220K in nice areas
     
  20. The Grinch

    The Grinch Well-Known Member

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    Tamworth, forbes, parkes, orange, lithgow, oberon, broken hill, wagga wagga.

    Do your DD but most of these would be cash flow positive amd within budget.
     

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