Where to buy first IP for <500k?

It’s taken me a while but I’m finally in a good position personally and financially to buy my first ever property. Unfortunately the rest of Australia also feels the same way and prices have boomed massively in a lot of areas I was originally looking at within greater western Syd, so am now considering interstate.

Any suggestions on where to buy an IP for <500k that meets these specs?

* a house
* minimum 600sqm land
* decent rental yield of at least 4.5% so I can attain positive or near positive cash flow
* good capital growth (would like to use the equity to purchase another property within 5 years)
* low maintenance, not in need of renovations to make it liveable, but room for some cosmetic improvements in the future (when I have money again)
* somewhere that hasn’t already had its boom?!

I’ve been doing a lot of research on Petrie/Kallangur in QLD which is one of my preferred locations at the moment but I fear I may have already missed the boat, with not much decent stock left within my budget. Any other places I could look into?

 

I'm also in the same boat and looking for IP with similar requirements.

Have you checked StrathPine/Bald Hills/Bracken Ridge/Carseldine?

In the south west, I'm looking at Goodna, Gailes, Rocklea, Oxley, Forest Lakes. Close to city/Big land size/approx 5% rental yield.

 

was looking at strathpine area but recent sold prices don’t seem to show much for less than 500k other than houses that need quite a bit of work/main road.

 

Great to hear you are ready to make your first purchase. 500k is a good budget to work with but you would be limited in the Sydney and Melbourne market, so you are right in looking elsewhere (interstate). There are numerous suburbs in Brisbane, Adelaide, and Perth for 500k which demonstrate strong demand. Have a look online to see which areas in each market you could purchase within. I am a fan of the suburbs you have mentioned within the Moreton Bay region. They have moved in the last 6 months but so have many places across the country. I think you are on the right track so just be patient and ready to execute when the right deal comes your way.

 

Most of Rocklea is in the flood zone.

 

Consider Toowoomba. It ticks all the boxes on your list. Seems to be at the start of a growth cycle (maybe). The capital growth box who knows? Nobody can predict that one with 100% certainty. Check out this thread
Towoomba - would you invest in house and land package [QLD]

 

Hi mate,

I have been in same boat as you. Started with looking at Springfield Lakes and Forest Lakes. Gave 2 offers but market is moving so fast, so lost both.

I am kind of feeling should better wait for things to cool down, its FHB everywhere.

 

Options in Logan too.

Same issues regarding plenty of buyers and competition.

 

I visited Brisbane 2 months back and only for a day on weekend. Had a good look at IpSwitch suburbs but couldn't see much in Logan, except Woodridge, Springwood, Daisy Hill, Rochdale (practically areas near BCC boundary).

Problem is within my budget of 400k, all these are areas are pretty much out, except for probably Woodridge. But i am not aware of area with regards to long term potential and tenant issues.

Any guidance would be great.

Looking at Gailes too but again not much knowledge of area.

 

The middle part of Logan in regents park, hill crest are still in your budget and haven't yet had the major ripple that the other suburbs next to the M1 have. High % of oo 25km from Brisbane, last decent oo suburb in Logan under 500k...

 

A friend recently bought in Boronia Heights. Well under 500 and rented well.

The Logan area is vast and plenty of commuter suburbs are options for you.

Regarding troublesome tenants, I am not sure that the whole Logan Area is the same as Woodridge. I don't think troublesome tenants are likely in the current market. I am hearing that many applications are forthcoming rents are good and u should have a bit more confidence.

Try Bethania, Eden's Landing, Loganlea (train suburbs) Boronia Heights, Crestmead ...... and good luck.

 

There are great tenants in every suburb, even Woodridge/Logan Central Present the house nicely, price appropriately and be careful who you accept to rent the home, you wont have a problem. And just in case you do, Landlords Insurance.

$400,000 is a very healthy budget for Logan, can agree with an earlier suggestion to look at the Browns Plains, Regents Park, Crestmead, Boronia Heights, Marsden areas.

 

Yeah, the market is moving fast in the right suburbs. Initially was looking for a house but now exploring townhouses as well that fit my budget.

Some of the areas I'm looking are Forest Lakes, Pallara, Heathwood etc. and then in the north such as Deception Bay, North Lakes, Caboolture etc.

What do you guys think about Caboolture? I think its a good suburb, well connected, has the amenities schools, shops, etc. but the only downside is its a bit far up north around 45-50kms from cbd. There is decent stock on market though prices have moved up a bit a decent 3B/2B/1C or 4B/2B/2C with 600m2 blocks is in the 350k-50k range.