Where to buy for <600k? <700k?

Considering Aussie wide, what should I look out for under 600k? And <700k?

 

It all depends on what your criteria is.

 

criteria= maximise capital gain over next 24months

Ideally
600m2+ land, 3-4+ bedroom free standing house

 

24 months is a very short period unless you plan on value adding like a reno.

 

just looking to gain come capital to support the purchase of another property.

 

I would say Perth at the moment. To maximise gains. Best chance of growth as rates rise.

 

Property is a long term investment.

 

Thank you for outlining it might be a longer-term investment. What would be a sensible timeline expectation?

 

Could you elaborate? am trying to understand the dynamics. Why would Perth property increase as interets rates increase?

 

At least 10 years, maybe more.

 

50 or 100 years, even better.

 

It's not because the rates are rising, it's because Perth market has been stagnant for a long time.

 

1. Where?

Was never all that good at finding where.



There are markets within markets.

Personally, all the unencumbered deca-millionaire owners I know only really bought in the one area. Many didn't even use all that many strategies within that area. Just grinded over a long time.

Perth as mentioned above has been stagnant, also has a strong demand for room-by-room rentals which is great for yield.

2. When?

Not much happens at a 10 year high school reunion.



Unless you created Post-It-Notes... or Canva.

As mentioned above by the all wise, and one of my first mentors @skater, the property game for most, requires at least 10 years to feel any real benefit. I would actually say 20+ years.

20 years, because it will compound and that mortgage will suddenly be less than 25% of the properties value, with an drastic increase in rental income.

3. What?

You still want to make profit in 2 years? Hu-mans, so predictable.



You will need to look at manufactured growth. Works great in flat and growing markets.
Works as a hedge against falling markets.

Manufactured growth can be renovations, developments, sub-divisions. Essentially all strategies that don't require the market as a whole to rise.

IMO active investments are best, because if your investment has grown in value due to time, well so has the price of a banana, and your dream home.

Even if you know what you are doing, it will take you more than 18 months to make profit out of a development. First you need to find a place, then buy, submit for approvals, build, and sell.

Subdivisions, could be faster. Perhaps a DA uplift or small renovation would meet your criteria.

4. How?

Grid Variance Analysis



Get to know an area intimately. It doesn't matter where we think works. This will be based on your price point, how far you're willing to travel. Don't pick where you live unless it meets your criteria.

The LEP, and DCP will become your bible. Find where the gaps in the market are. If there is a price jump between a 3 and 4 bedroom home, find a house where you can add a $2,000 wall and place it back on the market.

I know a guy with a 3 bed, 1 bath home. It's on stilts. Could easily add plumbing, convert it into a 4 bed, 2 bath (en-suite room), by adding a door, and dropping in a bathroom for under $10k.

Become best friends with every real-estate agent, buyers-agent, town-planner in the area. You want to be the first thing they think about when they wake up in the morning. Okay, don't go that far. You don't want a restraining order getting in the way of a solid bromance.

Learn to utilise RP-Data. You don't need to wait for a house to hit the market. Be clear on your criteria, hit the streets, and door knock / letter box drop owners.

You will be surprised how many will be open to selling you their home. Take an active approach, learn from as many people as you can. Make sure those people have had the results you are after.

5. Who?

Ever notice how at work, some things no longer seem like a problem, yet 10 years earlier it took hours or days to figure out?



Experience. You will make mistakes through-out the journey. Even with a strong guiding hand.
Time, with a strong dose of strategy and grit will bare the results you are after.

I've met hundreds of get-rich-quick investors. A couple are great friends of mine. I cringe watching them jump between shiny objects. Always moving on before they yield any results.

On the other hand. My compadres that stuck with the monotonous grind have far outdone myself in this game. Everybody loves a Facebook story. However there's a reason everybody knows Facebook. It's a unicorn.

Figure out where you fit in the great material continuum. Does it make you happy, will you get where you want to go. End of the day, life ain't nothing but a series of choices and consequences, and then you die, and then universe implodes.

Make sure you're walking on this journey for a reason that makes sense to you.