Hi Ozbargainers
I'm looking at buying another investment property. Currently have one property and wanting to expand my portfolio.
With all the uncertainty around negative gearing, I'm thinking of buying something that will positive gear from day one. I've decided to stay away from Brisbane and surrounding regions as the prices are inflated in my view.
Looking at properties worth $200K or less. What area does everyone suggest and why?
Thanks in advance.
4BR Properties out at Warwick are less than $190K and getting about $250 rent per week.
Just looking for ideas on other areas.
Is Warwick a mining town? Surely that couldn't be sustainable.
At full LVI, $190k at 5% over 30 years would be repayments of $235 weekly. Why would you rent?
No, not a mining town. Currently 59 properties available for rent through realestate.com.au. Town is mainly the elderly.
Having a quick look at rental places under $300, only 5 show up. And they also look like more recently built places (last 10-20 years) whereas properties for sale under $200k look to be at least 40 years old.
alot people in australia cannot buy because they dont have saving (for the deposit) they prefer to spend all in alcohol and renting forever. doesnt matter how low is the interest rate, some or majority maybe will never able to buy. period.
@tomsco:
Yep. I wouldn't expect $200K to be getting anything modern.
Anyway, Warwick is just an example. Trying to see if there are other areas worth considering.
Anyway, Warwick is just an example. Trying to see if there are other areas worth considering.
Yep, fair enough.
Being from Melbourne, I'd dream of being able to buy a place for $200k. Haha. Maybe I should move up north.
You mentioned Warwick.
In 2007 the median price of a house was $220k, in 2015 it was $242k.
After taking into account inflation, you'll lost the time value of money.
I haven't taken into account the stamp duty, other holding cost, repairs, fees etc.
If it has gone up 10% in the past 8 years, imagine what future capital growth will be like when Australia hasn't experienced a housing boom.
Unfortunately a lot of country towns are dying. I wouldn't want to be holding a house where the population is shrinking.
No such thing as high yield AND high (or even moderate) cap growth.
Hi Chibot,
I was trying to pm you a link to someone that can help, (without sockpuppeting).
Hi ully, I've turned on this setting. Please PM me the link. Thanks
Try buying in a regional town with a uni for example rather than a small town with nothing much there
One that comes to mind is Gatton. It's got a uni and the rental market looks good. The only downside - a prison.
Cairns and Townsville is looking ok
Global REIT ETF. For example, DJRE. Basically a whole lot of properties of different types in an index, you are paid a dividend a few times of year. (let's just call it your 'rental return')
I can't get over the stamp duty and selling cost robbery at any point in time buying hard assets.
Not financial advice, just personal opinion.
Thanks mate. Thought about it but I guess I'm a traditionalist and want to stick to brick and mortar.
Might want to read through the "tenant trashed my rental property" thread…
Widening the scope now. Looking for a property investment less than 200K in the country. QLD does seem limited…
serious question
what can you by for $200k? A studio with no parking in a crappy area? Then what is the rent potential?