Where would you buy for 250?

Hey guys,

Im on a tight budget and looking to get into my first IP. I really want to find something thats not neg geared and will allow me to pull some equity out in 6 months - a year and go for another but I'm quickly finding that properties fitting that fit that description and my budget are not easy to find.

So, where would you go?

 

I had the same criteria and bought in Christie Downs SA, 715sqm block for 240k.

 

Under 2% long term capital growth over the last 10 years based on median house prices may mean equity draw down may not be possible in the timeframe for the OP unless its a total renovation job

 

Ipswich?

 

Joel what rent do you get per week?
I'm going to assume it's cashflow positive.

 

Take a look at Dandenong.

 

Yes far southern Adelaide suburbs as well as far northern ones. Salisbury, Playford areas.

 

I prefer south for Adelaide in that price range.

I personally only buy/hold and develop only in western suburbs, but that is a different price range.

 

Older villa style units or 2 bed walk up style (like those 220k two bidders around Potter St) ? Any potential for CG in these?

 

Or it could mean that the area is underpriced and now is a good time. I live in the area and its definitely moving.

 

Ask @bob shovel about his equity position on the property in Adelaide I sourced for him a few months ago

 

I bought under land value. The house was thrown in for free

 

Inner CBD ipswich suburbs close to parks, schools and cafes, plus eastern heights and newtown: look for 3+ bd character houses, a good size block (600m2+), cosmetic rennovation, highset, floodfree. These properties are selling and renting well in your price range. Some good deals to be found in the whole 200s range actually. Low vacancy rates and decent yields for these areas from the get go are available, for the time being. Don't be fooled by the opinions of old, its actually becoming an increasingly desirable place with its improving cafe culture and old world charm. Its still entry level price, and in particular, the dream for many of living or renting a Queenslander on a decent block is attainable and affordable, yet still within a doable commute to the CBD. Good job prospects and growth in the area, with many not even commuting to Brisbane CBD for work. There will also be an influx of defense personnel coming into town/amberly as summer draws.

Nocookies

Is 2016 the year for property in Ipswich?

This is just an opinion and you really need to find out what area makes sense to you and contributes most appropriately to your overall goals. Don't take our words/opinions/research/speculation as truth, because we will justify whatever works for us, not necessarily you. In the end, there are opportunities in most markets if you spend time looking, watching, researching and becoming familiar with the area. But you need to commit time and energy to understanding applying what you want, and translating that to actual concrete opportunities. You can just give your aforementioned criteria to a BA if you are time constrained. What has your own search for properties that fit your criteria found so far @Green

 

I feel a bit scared about Dandenong with the whole Apex carjacking thing but there are some tempting prices. Have you bought there?

 

Past performance is not a reliable indicator of future results.

Plenty of houses need renovation. If you rent it out without any work, you'll just have to pay people to fix things you could've fixed yourself.

OP if you want to look cheaper and easier try northern Adelaide. I revalued my 150k house in Smithfield Plains at 185k after 6 months. Spent 4k renovating. It's rented for 250/wk. Less long term CG prospects there though.

Up for rent @ 290/wk which is 6.3% yield or something. That'll be positive.

 

Thanks for the great reply! I've been looking around the Logan area and its tempting because you can get in a town house for 210 or so and rent it for 280 which seems like a great deal, however they are selling for exactly the same price as what they were 8 years ago so Im scared that If I pick up one of them I won't be able to pull out any equity.

I haven't really looking into the Ipswich area too much, do you think it has strong GC potential?


The other consideration on my mind is that a bit of cosmetic reno might be the best way to allow me to pull some equity out after a revaluation, but for me to be able to do a bit of reno the property would really have to be in Melbourne. I feel like theres good potential in the north broadmeadows and a bit higher areas and then going down to Doveton and Dandenong, its very possible to get in somewhere at the 250 mark. Although the yields aren't anywhere as strong as the Brissy properties.


I really haven't looked into the Adelaide market at all, where I'm at at the moment I see the choice as:

Melbourne:
+ Can reno and strong growth
- Low yield

Or

Brissy:
+ High Yield
- Can't really yield
- More uncertain about getting a good valuation

 

Look to North Adelaide as mentioned by others.
Get davem to do the dirty work for you and get a great deal! I started a thread with my purchase with Dave somewhere

 

Haven't bought there but it is on my radar. Can't stay this cheep forever.

 

Regional NSW and Adelaide might be your best bet with that price range

 

Me, Joel, Xenia, DaveM, Bob Shovel, Dark Knight mentioned Adelaide.

Cactus and memeplecko mentioned dandenong
Heinz and DanMicb Ipswich

Seems you had already had made your mind up. Why didnt you just put forward Melb and Brissy as options and ask what people think of those two areas?