Where to invest

Hi All,

I would love some experienced input on where best to purchase an investment property.

There are so many options!!! But only one bad investment and you're history. Or one less than good investment and you potentially lose tens if not hundreds of thousands of dollars.

I have 200k deposit and am on 45k/year (which will probably reduce). I'm trying to stick below 400k property.

I have looked at -

Perth:
Wellard H+L
Queens Park H+L
Langford H

Brisbane:
Beaudesert H+L
Redcliffe H

Sydney:
Ropes Crossing H+L
Western Suburbs H
Parramatta/Granville U

Any ideas to narrow the focus?

Thanks
Sureline
 
"Where to invest", is probably the biggest question of all. Once you know where you want to invest and why, the rest becomes easy.

Why did you choose these locations? If you can answer this question, then you can evaluate these areas based on those criteria and determine which locations would be the most suitable.
 
Agreed!

These areas are mostly < 400k
I am from Perth but now in Sydney so I sort of know these areas.
I think there is good potential capital growth in these areas.
I prefer Perth or Sydney but both have skyrocketed so much that one has to wonder how much steam is left and hence the Brisbane options.

I can't even decide between H+L, just house or unit. It's doing my head in. And every year I delay, the prices are further out of reach.
 
Watch out for aircraft noise. I went to inspect a unit there last year and when planes flew overhead, the whole house shook. Some parts are noisier than others.

Although if you use that measure in Sydney, you would not buy in the Inner West - and it has been going gangbusters in terms of growth, for years :p
 
..... or Sydney but both have skyrocketed so much that one has to wonder how much steam is left .......

You are mistaken. Sydney went up 8 - 12% last year 2013, depending on suburb. This is hardly "skyrocketing" but makes for good news headlines.

Bear in mind, in the past 15 years, there have been growth spurts of 30 to 40+% in any one year, in many high growth areas of Sydney.

10% is good, but hardly anything to get too bent out of shape about. :p
 
You are mistaken. Sydney went up 8 - 12% last year 2013, depending on suburb. This is hardly "skyrocketing" but makes for good news headlines.

Bear in mind, in the past 15 years, there have been growth spurts of 30 to 40+% in any one year, in many high growth areas of Sydney.

10% is good, but hardly anything to get too bent out of shape about. :p

Hi PropertyU
My Doonside property has gone up at least 40% so I am delighted, and am sure many who purchased in Syd West have also had great growth.

Any other pockets that you would recommend, that still provide good value for an investor??

Cheers
MTR:)
 
Any other pockets that you would recommend, that still provide good value for an investor??

Hi MTR :)
Please define "good value" without using the words "below market value" :p
If the hot suburbs are too hot for you (not you, but ppl in general), then look for better "value" one suburb out.

i.e. in Ashfield, look in Ashbury in Dulwich Hill, look in Hurlstone Park and so on.
 
Your Brisbane options are a bit strange

Redcliffe is ok - but if your budget is 400k then you could buy in better areas
You can get a house for under 300 in redcliffe

Beaudesert - that would prove to be a bad decision, how did you even come up with this as an option ?
 
These are unusual numbers (very large deposit relative to your income).

Can you explain how this happened, and why you think your income will reduce further?

Hi, I worked in the mining industry in Perth for 5 years and saved my derriere off. Now I am in Sydney doing similar work at less than half the income.

I expect my work to reduce as the industry I am in is becoming increasingly quiet.

Thx for posting...
 
Your Brisbane options are a bit strange

Redcliffe is ok - but if your budget is 400k then you could buy in better areas
You can get a house for under 300 in redcliffe

Beaudesert - that would prove to be a bad decision, how did you even come up with this as an option ?

Redcliffe is so close to the ocean! Where is better in Brisbane?

Beaudesert as it will soon be at the centre of a new transport hub. Population set to go from 15,000 to 100,000+
 
Redcliffe is so close to the ocean! Where is better in Brisbane?

Beaudesert as it will soon be at the centre of a new transport hub. Population set to go from 15,000 to 100,000+

....

A transport hub? To where? Mars, Middle Earth?
It's a load of pi5s and wind

I like redcliffe too but I would only spend 300 max
 
Hi strongy,

Investors are actually starting to take interest in Beaudesert.

http://www.dailyexaminer.com.au/news/transport-network-plan-road-casino-lindsay-fox/691167/

a quote:

"The developing South East Queensland transport hub of Bromelton, west of Beaudesert, would be one of the major beneficiaries, attracting heavy industrial manufacturers such as Mirvac and Eureka Manufacturing."

So you would spend 400k in a town that is 70km from Brisbsne, 35km from Gold Coast ?
You could buy a house within 20km of Brisbane or almost anywhere on the gc for same price

Growth potential on a new 400k house in beaudesert would be 0 for at least the next ten years
 
I also had concerns that the growth would not be that great. But even without any industry, the rental yields are quite good. With a boom in population to take place, it would only put pressure on rental yields.

The works on the transport hub are beginning early this year. beaudesert will be a completely different place in 5 years.

The house prices are beginning to move already and real estate agents in Beaudesert have mentioned that there is increased interest in property.

I have wondered if this could be the opportunity to jump into a hotspot before other investors realize the potential.
 
I also had concerns that the growth would not be that great. But even without any industry, the rental yields are quite good. With a boom in population to take place, it would only put pressure on rental yields.

The works on the transport hub are beginning early this year. beaudesert will be a completely different place in 5 years.

The house prices are beginning to move already and real estate agents in Beaudesert have mentioned that there is increased interest in property.

I have wondered if this could be the opportunity to jump into a hotspot before other investors realize the potential.

A population boom won't cause the value of your home and land to increase.

Developers from brissy and gc will swamp the town with new homes which will effectively put a lid on your capital gains

Land is abundant and therefore cheap - they can build those homes for about 100k
They will be selling house and land for 250 - 280 k to compete with each other

Unless your house is in the centre of town it's value will be trashed
 
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