Where to buy with 300k

@Robert Petty

So do you have an apartment or a unit?

I didn't expect the body corporate to be anywhere near that or the rates...

Also rents on units/ apartments are pretty bad

2 bedder units in Cairns surrounding suburbs are renting for $250 a week - in average condition
Assuming you bought in a simple complex and the rates arnt as bad for units in cairns as townsville then you would be looking at a cash on cash return of 7% - if you could get one for 100k

I think townsville city has more to offer locals than cairns but at 7% vs 1 % cairns units would get my vote
Best thing about cairns is that it is close to other interesting places whereas townsville is a bit geographically isolated

Hopefully for you the current trend of decreasing rentals increases and the rents can become a bit more respectable.

 

Rather an alarmist statement.

In all of my years of being in the industry i have never seen a Bank foreclose on a residential loan where the borrowers loan repayments were update merely because the value had changed putting them into a negative equity position. In the UK when prices feel lenders offered borrowers negative equity loans where they wanted to sell and buy again even though the existing loan was greater than value of the property being sold.

 

Thanks everyone for giving me something to think about. I don't think I will be buying anywhere too regional for my first purchase.

I started to wonder why I was willing to pay 300k for a regional investment when I can spend under 400k and still get above 5.5% yield with better potential for capital gains around Logan area. I know the Logan area relatively well. I used to catch the train from the Gold Coast to Brisbane very regularly.

I should be able to save the extra 20k in the next 6 months. It can be tough feeding a family though while also doing my uni. On the plus side I have more time to do my research. The negative side is I'm getting impatient being out of the property market. I have a lot of shares in index funds but I refuse to sell them since it would be a breach of my investment plan. I get free accommodation since I work on a family property so I have no need to buy a house for myself just yet.

I was wondering what people here think I should demand for my 400k limit around the Logan area? I was hoping for 800m2 block with a tidy four bedroom house. I am going for a drive through the area tomorrow.

Regards,
Bigsaver

 

I think the best thing you can do for the long term is buy a good piece of land
The fact that your looking for a 4 bedder is a bit alarming. That's an owner occupier wishlist, not an investment mindset
Unless you are buying a house with timeless character then I wouldn't take it into too much consideration, obviously consider cashflow
For 400k around Logan I would be looking for a corner block with the house to the front so future subdivision is an option.

Having said that there is no reason why Logan would be a better Investment than something regional. Good suburbs in Cairns and Townsville are pricey(500-700k) for a reason. Good views, Nice houses, these people hVe good paying jobs
so with 400k up there you can get an awesome place in a second tier suburb

why are you fixated on Logan - what suburbs?
Redlands/ moreton.bay might be worth a look too

 

It doesn't have to be four bedrooms. I thought 4 bedrooms might make it easier to get the rental yield I was after for a bigger block.

I like the idea of logan because it is close to Brisbane and the Gold Coast. There is also good infrastructure around here. I am not decided yet which is why I am asking questions here. I know the Logan area a bit more than some of the others but that can be fixed.

 

Thanks for replying as well Strongy. I appreciate the help. I understand it is for other people. By tidy I just meant something that will rent easily. I will aim for a big block with low maintenance garden.