Where's the best place to invest 210k?

[Jom]

Hi all

I've sold my PPOR and am stuck with either paying huge break costs, due to breaking a loan fixed at 7.89%, or moving the loan to another property (with a "portibility option"). I'm thinking this might be an oportunity to buy another IP. Only thing though, it would need to be cheap. Ie total cost of 210k.

Now i realise that this won't get me much, but i'm thinking a unit somewhere? Perhaps CBD or southbank, in one of the quest hotels with guarenteed rent etc.

What do people think of these? Ideally i'd like something with quite a realatively high return. Where else would I be best to look in this price range? Or is it impossible. (I am looking at VIC)

All thoughts welcome.

Thanks
Jom

 

[Belu]

i would suggest a 2br unit in either sunshine or glenroy. i like these suburbs and with $210k you should be able to get a renovated unit in either.

 

[bailz66]

Lots of places you can use $210k

Just remember buying costs, stamp duty, loan fees, conveyancing... could eat up a bit chunk of 210k

 

[Muli]

Hi Jom,

Put half of them in CNP and another half in BBI shares =)

 

[Jom]

Lots of places you can use $210k

Just remember buying costs, stamp duty, loan fees, conveyancing... could eat up a bit chunk of 210k

Unfortunately, I am aware of all of these costs, and how much they will eat away at the 210k. I'm after ideas about where I might spend the money (ie 195-200k)?

 

[Belu]

again, a 2br renovated unit in sunshine walking distance to zone 1 - around $195k, unrenovated around $175k.

2br unit is glenroy for around $200k unrenovated may be a possibility as well.

 

[Jom]

again, a 2br renovated unit in sunshine walking distance to zone 1 - around $195k, unrenovated around $175k.

2br unit is glenroy for around $200k unrenovated may be a possibility as well.

Thanks Belu.

I unfamiliar with that area. Do you know what sort of rent a property like this would return?

 

[Belu]

do a search on realestate.com.au but my 2br apartment in glenroy i bought for $185k in July and its rented at $260/week which is a bit above median.

I would expect for a 2 br in glenroy you would get $240-250 a week if it is a short walk to the station and shops as they mostly are, so should be gross yielding in the 6% range.

Rents are only going up in the area as well as it has a good population of migrants that have been here ~ 4-5 years and are moving from the stage of living with a large group of friends etc to renting their own places and settleing down whilst saving their deposit.

 

[Belu]

oh, and for sunshine do a search, but i see CG as higher in sunshine and yield higher in glenroy. sunshine purchase for $200 would rent for $220/week or so, glenroy at $250/week.

it depends on what you want. i wanted my first purchase to be close to CFn and it is, $60/month on P&I at the moment, one more rate drop and its in. Any CG is a bonus now, plus i bought it at $20k under market which helped.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=22473343&s=vic&snf=rbs&tm=1226370659

something like this would be a good sunshine buy IMO. small number in block, high ceilings, renovated so some depreciation, walking to station (zone 1) and would return ~ $230/week.

Sunshine is like st albans and what footscray used to be like, it tends to be flat for a number of years and then boom hard and go up ~40% in a year/18months and then flatten for another few years.

This is against glenroy which is more of an incremental yearly climber.

 

[Jom]

oh, and for sunshine do a search, but i see CG as higher in sunshine and yield higher in glenroy. sunshine purchase for $200 would rent for $220/week or so, glenroy at $250/week.

it depends on what you want. i wanted my first purchase to be close to CFn and it is, $60/month on P&I at the moment, one more rate drop and its in. Any CG is a bonus now, plus i bought it at $20k under market which helped.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=22473343&s=vic&snf=rbs&tm=1226370659

something like this would be a good sunshine buy IMO. small number in block, high ceilings, renovated so some depreciation, walking to station (zone 1) and would return ~ $230/week.

Sunshine is like st albans and what footscray used to be like, it tends to be flat for a number of years and then boom hard and go up ~40% in a year/18months and then flatten for another few years.

This is against glenroy which is more of an incremental yearly climber.

Thanks heaps for this very helpful information. I'll look into it!

 

[Bayside]

Hey Jom, I see your in Frankston. Take a look at the Frankston North thread.
The area is really showing signs of changing and you could buy a house for $210k if your lucky. Get something over 650sqm that is s.t.c.a sub divide in the future

 

[Bayside]

Jom, i'd be all over this one
Best part of Frankston North

http://www.realestate.com.au/cgi-bi...r=&cc=&c=52388553&s=vic&snf=rbs&tm=1227059472

 

[Toni]

Thanks for the link Bayside, I might check this one out if it is still available

Toni

 

[dreims]

I'm in a similar boat, heres a few on my radar

I'll throw em out there see what people think.

VIC - Ballarat, Arrarat, Melton South, Albion, Sunshine, Carlton, North Melbourne

NSW - Dubbo

SA - Elizabeth, Port Pirie South, Marden

QLD - Logan Central, Holloways beach

WA - Kambalda

 

[want2bewealthy]

Where did you get the 210k figure from? have you seen a mortgage broker? the reason I ask is you could have much more to play with if need be.

 

[Gools]

SA - Port Pirie South

Haven't you heard about the possibility of the towns biggest employer shutting it's doors? I guess having the worlds biggest lead smelter close could be seen as a good thing for the town...

 

[Peter Parker]

VIC - Ballarat, Arrarat, Melton South, Albion, Sunshine, Carlton, North Melbourne

You can eliminate Carlton & North Melbourne as the only thing you'd get for that price would be a serviced or student apartment.

There are a lot more affordable Melbourne suburbs than your list, and some are better too! Unless all houses are the same, almost any suburb with a median under $300k will have *something* around $210k.

You'll find units around $210k anywhere between Mentone and Frankston, and might just be able to get a house at Franga North. And it might be an entry price for a small unit in Footscray, Altona, Reservoir, Noble Park, Glenroy or Epping (though Lalor is better IMHO).

WA - Kambalda

Nope. $210k should buy you a 2br place in Kalgoorlie which is a much bigger town and more stable. It should get near a 7% yield - OK but if you can get 6% in a capital city why would you?

Peter

 

[MarkB]

If you're so keen to buy again, is there any chance you could borrow more $ to increase your $200k or so budget? Bigger budget = more options and it still won't mean break costs.

 

[dreims]

cairns

What about Cairns

International airport with major development plans, flights return to singapore, and toyko for under $300, beaches, tropical weather. The Great Barrier Reef, Green Island and Fitzroy Island. Cairns has big appeal in japan and as the Australian Dollar drops, fuel costs comming down....

 

[mykie]

I'll throw em out there see what people think.

VIC - Carlton, North Melbourne

Nothing over >50sqm which means trouble to get finance.

If finance is not a problem it is possible that you can get a 1B apartment in an inner city suburb but you have to be real patient and look for bank auctions.