Where to buy next IP for under $400k

Hey everyone,

I currently have a PPOR in the inner west of Sydney (1 bedroom apartment), and an IP (house) in Moreton Bay, QLD (around 4.5% yield).

May be renting out PPOR in the near future which will be slightly cash flow positive.

What kind of 2nd IP purchase would you recommend to me?

I'm thinking something with balanced CG and CF and in QLD again, preferably under $400k so I won't need to wait to raise a deposit, but wary of putting all eggs in the QLD basket.

Any thoughts?

 

What are you thinking of buying if in QLD with a $400K budget?

 

Maybe a good Logan suburb. In general I like proximity to CBD and am less inclined to go too regional.

 

And free standing house on a reasonable block

 

I'm following this thread, as I'm also interested in a good Logan suburb I would also throw Moreton Bay into the mix if that's even possible nowadays?

 

400k might squeeze you into a working class (one step above Moreton Bay) suburb of Perth/Adelaide maybe?

 

Which working class suburb are you thinking of @gach2 in Adelaide?

 

400k will buy a good house in some popular PPOR suburbs in Brisbane on the Southside but you'd need to move quickly if the market continues to rise as we've seen in the last 6-9 months.

 

Is there a compelling argument to buy in places like Perth and Adelaide compared to Brisbane? I'm thinking long term growth wise Brisbane will surely leave Perth and Adelaide in the dust because of its size, economics and location?

Also what do people think of Newcastle and Geelong?

 

Cant say if Brisbane will leave Perth/Adelaide in dust

but due to your limited budget in Brisbane you might be buying in a different class of suburb. You do already have one in Moreton Bay so if you did want to diversify.

Geelong could be option but then again it would be in a lower socio economy suburb based on budget (but being Melbourne satellite it might move better)

Dont think your budget will allow Newcastle (atleast for a house)

 

hmm ok so I gotta weight up buying in:

- lower socio-economic areas in Brisbane/Geelong. Considerations: need to wait to gentrify, potential tenant issues, but maybe better long term growth

- better suburbs in Adelaide/Perth. Considerations: less hassles maybe (hard to say though), still good cash flow but may not have as good long term growth

Any other considerations I'm missing?