If you had only 250k to buy a house, where would it be and why?

[JT7]

I'd have to agree with Jen on this one.

WA is hot but might get a contraction due to some issues with the mining industry.

Western Sydney would be a good option around the Mt Druitt 2770 area if you can get something but that market is starting to run pretty hot. I'd also have a look at Penrith. Anther option would be a 70's-80's style unit in an eight pack on the train line running into the Sydney CBD. Opportunity for renovation with huge rental pool. I'd have a look at Warwick Farm, Cabramatta, Fairfield, Wylie Park.

I like many of those areas Jen mentioned however, I also like Ipswich. Toowoomba, Rockhampton and Logan I'd be happy to put my money into.

Jack

 

[JT7]

I'd have to agree with Jen on this one.

WA is hot but might get a contraction due to some issues with the mining industry.

Western Sydney would be a good option around the Mt Druitt 2770 area if you can get something but that market is starting to run pretty hot. I'd also have a look at Penrith. Anther option would be a 70's-80's style unit in an eight pack on the train line running into the Sydney CBD. Opportunity for renovation with huge rental pool. I'd have a look at Warwick Farm, Cabramatta, Fairfield, Wylie Park.

I like many of those areas Jen mentioned however, I also like Ipswich. Toowoomba, Rockhampton and Logan I'd be happy to put my money into.

Jack

Forgot to mention Liverpool here in Sydney as well. Unit in small block.

 

[ChrisA1]

Forgot to mention Liverpool here in Sydney as well. Unit in small block.

Certainly agree with the above 2 comments from JT here. I bought in Campbelltown on the last weekend before the FHOG finished in Sept 12 and prices are continuing to go up. Good to see the NSW government input to the area (although there is a lot of land also available on both sides of the M5, which may keep a lid on prices since land is continuing to be opened up through this corridor).

I am sure Penrith would be in the same situation here.

 

[strongy1986]

Oh ok.. if that's your buying criteria, there's no point discussing then.



heaps. but you're comparing apples vs oranges here. Good luck!

Ok so your talking over 15 km then?

The reason I say 15 is because Brisbane isn't as big a population as Sydney and Melbourne and it will take a lot longer to see big growth in the outer areas

Don't be so secretive Edmond, if your on to a good thing why not share it with the forum?

I would of thought my criteria was fairly sensible given trends in Sydney Melbourne
What is yours

 

[GFT]

Bundaberg

New port in pipe line

Only parts of Bundy have been affected by flood valuation drops. Mind you in saying that taking into consideration even some of the 20 percent drops in vals in north Bundaberg and insurance harder to find on those properties at a higher price, if you only pay 60-80k for a property and spend 40k renovating it (these are real figures that I am currently working on for a client) and rent out at $280 min a week.....well you do the maths, it still stacks up quite well.

Many people have been paid out and just want to move on, while others need to be given some options.

Talk of mines - nothing confirmed of course but the gossip alone has made it a hot spot in the last two months

Consistent growth from Agriculture - Bundaberg can survive on its own, even after two floods that is something in itself.

Rent demand was high before the flood, now it's crazy.

So basically we have new industry, high rent demand, consistent industry already established providing stability regardless and three main beach communities.

It's like every area you need to do your research. These smaller areas need a bit more investigation to make sure you get a good healthy rental property

 

[JenJen]

Great overview, many thanks JenJen.

Brisbane in general has popped it's head up a few times recently.

Rockhampton seemed to go a bit quiet over the last 6 months or so (or maybe I was in the wrong place at the time). Do you still think that Rocky has potential/sustained performance??

Hi Chris

I think that overall, the Rockhampton property market is only just getting started, but does depend where you look. Have a look at these articles referring to Rocky from recent months:

http://www.propertyobserver.com.au/residential/rocky-on-the-rise-as-gladstone-stumbles-terry-ryder/2013052261590

http://www.motherpedia.com.au/article/top-property-hotspots-revealed

http://www.themorningbulletin.com.au/news/property-sales-belie-downturn-in-mining/1909439/

http://www.themorningbulletin.com.au/news/real-estate-market-firing-with-while-others-dwindl/1873623/

And this one published in API in June last year - link provided by API: http://www.apimagazine.com.au/downloads/how-to-benefit-from-price-ripples-and-rent-splashes

Cheers

Jen

 

[ChrisA1]

These are great articles and very timely.

I heard John Lindeman at a conference talking about his analysis, and this article, about Rocky in June 2012. That was probably the best time to buy (I say that now....).

Changing the topic slightly, it would be interesting to look more closely at gentrification trends and how long it takes for 'the next suburb' to pick up where the last (more expensive) suburb left off (are we looking at months, years?? - certainly depends on where we are looking at).

Anyway, back to Rocky analysis.

 

[norwoodman]

There are a lot of houses in older parts of Rocky sitting on two lots, or super deep blocks of over 1000m2 that are ripe for subdividing. There's been quite a bit of that going on in the North Rockhampton Residential Consolidation Area recently - those are the areas generally just west and east of the Musgrave Street commercial strip.

 

[ChrisA1]

What is the council's approach to subdividing/developing?

Are they pro development, or do they prefer keeping Rocky as a 'big country town' with the big backyards?

 

[JenJen]

Chris, if you haven't already seen it, you might find this useful for checking out demographics etc. http://atlas.id.com.au/rockhampton.

Regarding the council, my understanding is that it is pretty good. Depends on the zoning though, and whether zoned for residential consolidation, or mixed use etc, such as Berserker, Allenstown, parts of Rockhampton City (I have an IP there). See the maps and planning docs here: http://www.rockhamptonregion.qld.go...ning_and_Development/Current_Planning_Schemes.

Jen

 

[Doug Ithier]

Plus you wouldn't get anything for $250,000 anyway

Not exactly $250,000 but I just purchased a 4x2 house/land package in WA (Waroona south of Perth) for $275,000 with rents being achieved in the estate of $360-$400 per week and zero vacancy in the town.

I just got my valuation in from the banks for my finance and it came in at $300,000! Comparable completed 4x2's selling around $340,000.

Been little growth to speak of since GFC, so I feel its got some room for growth, and Alcoa (the towns main employer) are set for a $4billion expansion which may have a good effect of values moving forward.

In any case, its pre-tax positive from day 1, so I can hold and wait for long term growth.

 

[Brady]

Not exactly $250,000 but I just purchased a 4x2 house/land package in WA (Waroona south of Perth) for $275,000 with rents being achieved in the estate of $360-$400 per week and zero vacancy in the town.

I just got my valuation in from the banks for my finance and it came in at $300,000! Comparable completed 4x2's selling around $340,000.

Been little growth to speak of since GFC, so I feel its got some room for growth, and Alcoa (the towns main employer) are set for a $4billion expansion which may have a good effect of values moving forward.

In any case, its pre-tax positive from day 1, so I can hold and wait for long term growth.

Little confused?

How did you buy it so much under market value?

It's not often, actually very very rarely that the bank will value something above purchase price. And if comparable properties are selling for $340,000 then why wouldn't the bank value the property at $340,000

All of this isn't adding up, do you know the developers builders to get a below market price? Please provide more info

 

[redwing]

Waroona is a nice 'little' place, 112 km from Perth and 43 km from Mandurah, we have a relly in a retirement Village in the town so have visited a few times

http://www.visitmandurah.com/destinations/waroona

 

[Brady]

Not exactly $250,000 but I just purchased a 4x2 house/land package in WA (Waroona south of Perth) for $275,000 with rents being achieved in the estate of $360-$400 per week and zero vacancy in the town.

I just got my valuation in from the banks for my finance and it came in at $300,000! Comparable completed 4x2's selling around $340,000.

Been little growth to speak of since GFC, so I feel its got some room for growth, and Alcoa (the towns main employer) are set for a $4billion expansion which may have a good effect of values moving forward.

In any case, its pre-tax positive from day 1, so I can hold and wait for long term growth.

Funny how your post sounded like a sales pitch...

Then I see that your CEO of First Property... Who happen to sell properties...

 

[knightm]

Funny how your post sounded like a sales pitch...

Then I see that your CEO of First Property... Who happen to sell properties...

...who happen to have a few for sale in ...wait for it - waroona! Like this one for example???

ploise exploin

 

[Mom]

I'll safe my borrowing power for now

The market is too hot in Sydney, my preferred city. So, I'll wait until RBA increase the interest rates to above 7 and let other people hold the properties for me till then. My plan is to buy these properties directly from the bank at less than their now price.

 

[ZachAnSel]

The market is too hot in Sydney, my preferred city. So, I'll wait until RBA increase the interest rates to above 7 and let other people hold the properties for me till then. My plan is to buy these properties directly from the bank at less than their now price.

Mind you, by the time interest rate is 7% the property price already gain significant value. Could be double, and people will think today's price is cheap

 

[Brady]

The market is too hot in Sydney, my preferred city. So, I'll wait until RBA increase the interest rates to above 7 and let other people hold the properties for me till then. My plan is to buy these properties directly from the bank at less than their now price.

Could be a long wait, user name might be grandma by then

 

[Jenko]

The market is too hot in Sydney, my preferred city. So, I'll wait until RBA increase the interest rates to above 7 and let other people hold the properties for me till then. My plan is to buy these properties directly from the bank at less than their now price.

I think you could add both of the above posts together. More then likely you'll never get into the market if you wait for rates to go upto 7% and prices to be bellow today's prices.. There are plenty people out there that have the same strategy and fortunately they waste their best assist "time".

 

[norwoodman]

In the mean time you could be looking to invest in other markets rather than being overly focussed on one and hoping.