All Topics / Help Needed! / House for under $300,00 – Where would you buy in NSW?

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  • Profile photo of evernatevernat
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    @evernat
    Join Date: 2010
    Post Count: 18

    Hi all

    Thank you all very much on the help I have got off so many on the forum so far,hope you all are having a nice Xmas.

    I have been doing lots of research on properties in the Nowra and North Nowra area and before I make the plunge I was interested to hear everybody thoughts.

    If you where to invest under $300k, where would you buy?

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    Two bedroom unit in Queanbeyan NSW – something for around the $220k mark that can do with some basic renos – probably new paint, flooring and possibly an updated kitchen.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of CatalystCatalyst
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    @catalyst
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    Do you think Nowra will outperform Sydney? Or do you think you have a better chance of buying under market value there?

    In other words- why Nowra?

    Same Jamie- why Queanbeyan?

    I'm still looking in Sydney for 2011.

    Profile photo of evernatevernat
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    @evernat
    Join Date: 2010
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    I have many reasons on Nowra, one been I can buy a house and not a unit. (long term I think it will go up as Im talking 7-10 years)

    I have owned units and they drain you dry,to many costs with them.

    Catalyst  where can you buy a house in Sydney for under 300?

    Profile photo of evernatevernat
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    @evernat
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    Sorry guys for short answer,

    I have have some really good feedback on this thread a while ago.

    https://www.propertyinvesting.com/forums/property-investing/help-needed/4333820

    Yes I would really like to buy in Sydney,but to buy a house for under 300 and get good rent,not easy.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    Catalyst wrote:
    Same Jamie- why Queanbeyan?

    It grows at the same rate as Canberra – which is still considered a rising market. It also shares the same low vacancy rates as Canberra. The rental yields that you can achieve with the units is often quite good – particularly the older stock that can be tarted up quite cheaply for instant equity gain and higher rents. Oh, and it's just down the road from me – so I can carry out as much or as little of the work as I choose. 

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of IP FreelyIP Freely
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    @ip-freely
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    evernat wrote:
    Sorry guys for short answer,

    I have have some really good feedback on this thread a while ago.

    https://www.propertyinvesting.com/forums/property-investing/help-needed/4333820

    Yes I would really like to buy in Sydney,but to buy a house for under 300 and get good rent,not easy.

    Still some opportunities around Mt Druitt/Dhurruk or further out towards Penrith etc.

    Profile photo of philbambackphilbamback
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    @philbamback
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    In any event I would use the following variables to help me decide and rate them against each other 1-10

    • Yields above 4.9%

    • Easy affordability

    • Independent land valuations

    • Independent rental evidence

    • Very strong rental demand

    • High levels of owner occupancy

    • Local infrastructure

    • Local transport

    • Local employment opportunities

    Profile photo of TerrywTerryw
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    @terryw
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    I wouldn't buy in a country town. There are plenty of cheap houses in Sydney and these would probably have more growth potential in CG and rental increases. Try Campbelltown and Mt Duritt areas – my mate just sold a 3 bedroom house in Whalen, near Mt Duritt for $220,000 – think it was renting for close to $300 pw.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of evernatevernat
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    @evernat
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    Thanks guys but Im just not willing to spend my money in areas like Campbelltown and Mt Duritt areas.

    Profile photo of CatalystCatalyst
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    @catalyst
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    Terryw wrote:
    I wouldn't buy in a country town. There are plenty of cheap houses in Sydney and these would probably have more growth potential in CG and rental increases. Try Campbelltown and Mt Duritt areas – my mate just sold a 3 bedroom house in Whalen, near Mt Duritt for $220,000 – think it was renting for close to $300 pw.

    Totally agree.  $220 is cheap to sell though, must have needed work. Many are over $260K now (not that I'd pay that).

    evernat wrote:
    Thanks guys but Im just not willing to spend my money in areas like Campbelltown and Mt Duritt areas.

    That's OK. More for me.

    But why would you buy in a country town and "hope" for capital growth when you can buy in Sydney. As Terry said- plenty under $300K with 6% yield. I do a quick reno and get 7.5% yield on mine plus an instant $30K increase in equity. So even if it stays flat for years I can sell and still make a profit as it's costing me nothing to hold.

    Everyone has different investment strategies though. Buy what you are comfortable with.

    Profile photo of alex mastorisalex mastoris
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    @alex-mastoris
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    if i was to purchace multiple investment properties how would i limit / reduce the land tax payable? i am thinking along the lines of setting up induvidual companies for each property and then draw a wage / salary, will this work? 

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Save on possible Land tax however just incur higher Accounting / ASIC fees instead let alone increased borrowing costs when it comes to taking out a loan.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of TerrywTerryw
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    alex mastoris wrote:
    if i was to purchace multiple investment properties how would i limit / reduce the land tax payable? i am thinking along the lines of setting up induvidual companies for each property and then draw a wage / salary, will this work? 

    And then pay more in CGT when you sell. Land tax differs from State to State, so an answer on how to minimise it would depend on which state you are talking about.

    Spreading you purchases out over several states can help too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of nutanuta
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    @nuta
    Join Date: 2009
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    Up in the Blue Mountains. Also down south- Nowra, Erowal Bay.

    Profile photo of goldiesgoldies
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    @goldies
    Join Date: 2010
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    Shame you wont look at the Mt Druitt area. Can i ask why? i am intrigued.

    I just bought my first IP after 3 months of research.

    Bought in Hebersham, 4 bedroom house, single lock up garage and seperate carport also. 580sqm block. Bought it for $235k, spent $6k on a cosmetic upgrade… rents out for $380 a week, got a tenant in day after settlement….

    I got $15k in equity in 2 weeks and a property that costs me nothing. Its a set and forget type property.

    I guess if its a stigma issue then like Catalyst said… "more for me"…. :)

    Profile photo of evernatevernat
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    @evernat
    Join Date: 2010
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    Hi guys

    The main reason I will not go near places like that is because of the stigma yes, and I have seen Ireland and England when things go bad that they drop really really fast.

    I take my hat off the you guys investing there and doing well but I just would not feel comfortable with it.

    Profile photo of CatalystCatalyst
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    @catalyst
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    goldies wrote:
    Bought in Hebersham, 4 bedroom house, single lock up garage and seperate carport also. 580sqm block. Bought it for $235k, spent $6k on a cosmetic upgrade… rents out for $380 a week, got a tenant in day after settlement….

    $380 a week is top dollar. How did you manage that?

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    evernat wrote:
    Hi guys

    The main reason I will not go near places like that is because of the stigma yes, and I have seen Ireland and England when things go bad that they drop really really fast.

    I take my hat off the you guys investing there and doing well but I just would not feel comfortable with it.

    Hi Evernat

    I know where you're coming from and I agree – you have to be comfortable with what you're doing. If purchasing an IP in one of these areas means you'll lose sleep at night – then it's not worth it.

    On the flip side, if you focus only on the numbers and mitigate risks by having landlord insurance, a good PM and hopefully decent tenants, then these places can make for rewarding investments. I have a couple of IPs in less than desirable areas – but they still perform well.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
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    Catalyst wrote:
    goldies wrote:
    Bought in Hebersham, 4 bedroom house, single lock up garage and seperate carport also. 580sqm block. Bought it for $235k, spent $6k on a cosmetic upgrade… rents out for $380 a week, got a tenant in day after settlement….

    $380 a week is top dollar. How did you manage that?

    Wow, $380 p.w is quite impressive. Might have to make a trip up to west Sydney in the new year.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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