If you had between 500 to 600k to invest where would you invest it and why?
- Thread starter Tenex
- Start date
I have left it open but eventually the strategy should be CG.
The problem with questions like this is that the people who are most likely to give you a good answer are unlikely to answer truthfully as they are looking at those areas already and they don't want competition .
In fact they might give you deliberately incorrect information ....
Cliff
In fact they might give you deliberately incorrect information ....
Cliff
Y man answered while I was writing my post .
Idea ... Find out who y man is and set a PI on to him . You might find someone who's prepared to split costs....
Serious answer would be not Sydney .
As we are over the land tax limit in NSW we won't be buying more in NSW .
If I was buying in NSW I'd look at Central coast , hunter valley maybe Raymond terrace . We looked at the upper area of Lake Macquarie a while ago and at that stage it was good if you were buying above the bottom of the market . There were some quite nice properties in the 4-500's Close to water . Summer land point ... We have a weekender in North arm cove and glancing at REA agents windows in nearby tea gardens there were properties under 200 which looked ok . Tea gardens hasn't moved much yet but I'd expect it to move in the near future . Toronto was a late mover in last cycle but is quite central . You'll find the bottom end will have moved but I'd be checking out a couple of steps up .
I think a long term punt is Karuah which used to have the pacific hwy going through the middle of town . It's under two hours from Sydney and has deep water access . It's a work in progress but at sometime in the future it will be worth much more than it is at the moment . The Hexham bridge is a bit of a bottle neck when the roads are busy but there are plans for a new freeway link between the current end of the Newcastle freeway and the freeway past heatherbrae . It's meant to start before 2020 . Each budget they allocate a few mill for the planing . There are plans on the net showing the path . Last budget they allocated money for the environmental impact studies and once they've done those they will fine tune the plans . It was one of the reasons why I was happy to buy our weekender in North arm cove . It'll take around 12-15 mins off the standard trip and will remove the bootle neck which can be really nasty on long weekends .
We live in the north of Sydney so hence a tendency to look at areas north of Sydney , but if I was on the south Side I'd be looking at the gong and places south . If I was a westie or a south westie I'd look at places out those ways eg Goulburn , Bathurst , orange . Further afield I check Wagga, Queebyan and maybe even broken hill .
As I'm not looking at buying in these places I haven't done any DD on these , but if I was looking at buying in NSW they are places I'd look at .
As per y man I'm looking elsewhere .
Cliff
Idea ... Find out who y man is and set a PI on to him . You might find someone who's prepared to split costs....
Serious answer would be not Sydney .
As we are over the land tax limit in NSW we won't be buying more in NSW .
If I was buying in NSW I'd look at Central coast , hunter valley maybe Raymond terrace . We looked at the upper area of Lake Macquarie a while ago and at that stage it was good if you were buying above the bottom of the market . There were some quite nice properties in the 4-500's Close to water . Summer land point ... We have a weekender in North arm cove and glancing at REA agents windows in nearby tea gardens there were properties under 200 which looked ok . Tea gardens hasn't moved much yet but I'd expect it to move in the near future . Toronto was a late mover in last cycle but is quite central . You'll find the bottom end will have moved but I'd be checking out a couple of steps up .
I think a long term punt is Karuah which used to have the pacific hwy going through the middle of town . It's under two hours from Sydney and has deep water access . It's a work in progress but at sometime in the future it will be worth much more than it is at the moment . The Hexham bridge is a bit of a bottle neck when the roads are busy but there are plans for a new freeway link between the current end of the Newcastle freeway and the freeway past heatherbrae . It's meant to start before 2020 . Each budget they allocate a few mill for the planing . There are plans on the net showing the path . Last budget they allocated money for the environmental impact studies and once they've done those they will fine tune the plans . It was one of the reasons why I was happy to buy our weekender in North arm cove . It'll take around 12-15 mins off the standard trip and will remove the bootle neck which can be really nasty on long weekends .
We live in the north of Sydney so hence a tendency to look at areas north of Sydney , but if I was on the south Side I'd be looking at the gong and places south . If I was a westie or a south westie I'd look at places out those ways eg Goulburn , Bathurst , orange . Further afield I check Wagga, Queebyan and maybe even broken hill .
As I'm not looking at buying in these places I haven't done any DD on these , but if I was looking at buying in NSW they are places I'd look at .
As per y man I'm looking elsewhere .
Cliff
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I'd probably pick some place that's been down in the dumps for years because of the mining boom and the high Aussie dollar. Probably a tourism dependant area like the Gold Coast or Cairns or similar. Tourism should do well in the coming years once again.
Definitely wouldn't buy in Sydney.
See ya's.
Definitely wouldn't buy in Sydney.
See ya's.
I'd check Lake Macquarie and Newcastle and its surrounds. This area has moved a little since say mid 2014 but it has far to go considering it's a little over an hour from Sydney and crappy little homes in Mount Druitt are selling at over $400k..
This afternoon, friends of ours put a deposit on a 3 bed - 2 bath home in Lake Macq that with a $10k reno will get $600 per week as a dual occ. Pretty good, I reckon.
The yields are just not there in Melbourne.
I'd also consider Ipswich and its surrounds. Good value buying with decent (over 7 per cent) yields to be got there as well.
Must add, we bought in Lake Macq with quite lovely water views late last year in the mid 300s. Hubby has fallen in love with the location and doesn't want to rent it out for now.
But do you own due diligence, this is a public forum ...
This afternoon, friends of ours put a deposit on a 3 bed - 2 bath home in Lake Macq that with a $10k reno will get $600 per week as a dual occ. Pretty good, I reckon.
The yields are just not there in Melbourne.
I'd also consider Ipswich and its surrounds. Good value buying with decent (over 7 per cent) yields to be got there as well.
Must add, we bought in Lake Macq with quite lovely water views late last year in the mid 300s. Hubby has fallen in love with the location and doesn't want to rent it out for now.
But do you own due diligence, this is a public forum ...
I would also look at somewhere like the Gold Cost, especially the pocket on beach side of highway between Mermaid Beach and Broadbeach. The light rail starts here and they're doing a $670m redevelopment of Pacific Fair shopping center. You would get a nice 3 bedroom apartment for this. Look for an older style block with low body corp. Avoid high rises with onsite manager and holiday letting where they charge $4-5k a year body corp fees. Should gross 5-6% and cap gains will be good when things pick up.
Well it would be fascinating to think that ones idea is so good it should remain a secret. But in any case I'm not in the market now.
The idea behind topics like this is not so much where but rather why. In a few years time we may be able to refer back to a topic like this one and see if a particular strategy was on track.
If you don't feel like sharing then I respect it. If you do share though please do mention the reason you have behind your pick.
The idea behind topics like this is not so much where but rather why. In a few years time we may be able to refer back to a topic like this one and see if a particular strategy was on track.
If you don't feel like sharing then I respect it. If you do share though please do mention the reason you have behind your pick.
By the way Tenex, just want to clarify - $600k borrowing without LMI, so the total purch price at $750k?
The Y-man
I think Newcastle offers a lot for investors. You will see dramatic prices rises after 2016, do your research to find out why OK, let's begin with the new city overhaul, the whole city will have a new look.
On top of that, for the longer term, once high speed rail is implemented it will only be 20 - 40 minutes on train to Newcastle from Sydney and by then I'm sure a lot of people will be tired of the high prices and traffic and will enjoy a sea change. it's only 2 hours to drive there anyway on a smooth highway all the way and express trains are the same.
OK, let's begin with the new city overhaul, the whole city will have a new look.On top of that, for the longer term, once high speed rail is implemented it will only be 20 - 40 minutes on train to Newcastle from Sydney and by then I'm sure a lot of people will be tired of the high prices and traffic and will enjoy a sea change. it's only 2 hours to drive there anyway on a smooth highway all the way and express trains are the same.
I would look at something like this:
http://www.realestate.com.au/property-townhouse-qld-carina+heights-119198775
should have decent rental yields and good CG prospects. Also doesn't seem like it needs any work to be done either.
Interesting JD - any reason you wouldn't pay a bit more to go say
http://www.realestate.com.au/property-house-qld-carina-119110843
Is it due to rental yield/holding cost considerations?
Thanks
The Y-man
the one you mentioned is fine as well. but its at the very top end of the OP's budget- always a good idea to leave a buffer for unexpected things.
plus, the OP seems to be from nsw, thus seeking quick and good rents? I think the townhouse that I mentioned is in a slightly better area [ e.g closer to bus lines] and this will appeal to a wider range of tenants and more quickly as well. In addition, it seems less work than a house.
-all of which I would have thought appeal to interstate buyers looking for buy n hold and rent quickly, not much hassle, and for a good price.
ok-
the rationale for my above pick was based on the main drivers of CG and also rental yields- location, size, and quality. compared to costs/budget.
the type and location makes it attractive to wide range of people, the location makes it close to major employment hubs [ cbd], frequent public transport options, low supply [ vacant land] and consistently high demand outpacing the supply [ over the last 10 years or so]- resulting in a proven record of growth, established suburb, steadyilly increasing population growth, and also salaries/income, and also gentrifying. Infrastructure already in place [As a bonus, likely infrastructure extensions [already planned] in the next ? years], and lastly but not least next door to more expensive suburbs and thus ripple effect will take place.
I think Newcastle offers a lot for investors. You will see dramatic prices rises after 2016, do your research to find out why
On top of that, for the longer term, once high speed rail is implemented it will only be 20 - 40 minutes on train to Newcastle from Sydney and by then I'm sure a lot of people will be tired of the high prices and traffic and will enjoy a sea change. it's only 2 hours to drive there anyway on a smooth highway all the way and express trains are the same.
You should make a 'lets talk up newcastle thread! '
I think Newcastle offers a lot for investors. You will see dramatic prices rises after 2016, do your research to find out why
On top of that, for the longer term, once high speed rail is implemented it will only be 20 - 40 minutes on train to Newcastle from Sydney and by then I'm sure a lot of people will be tired of the high prices and traffic and will enjoy a sea change. it's only 2 hours to drive there anyway on a smooth highway all the way and express trains are the same.
I agree with you. I think Newy is still great value. I get there in under 2 hours for way out west in Sydney.
The high speed Maglev rail thing is really pie in the sky stuff though. Doubt we will ever see it in our lifetime. I have been on one though in Shang hai, bloody quick! I think more realistically we should be looking at the m7 - m2 link, when that comes on line it will cut travel by another 20minutes or so.