All Topics / Help Needed! / What are the top 3-5 suburbs to invest in NSW with $400K budget?

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  • Profile photo of photon2157photon2157
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    @photon2157
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    What are the top 3-5 suburbs to invest in NSW with $400K budget? What is your reasoning?

    Profile photo of lifestylezlifestylez
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    @lifestylez
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    It probably depends on what you are looking for in an investment, but I will assume you mean the best suburbs for future capital growth?

    You can probably find plenty of suburbs that have good potential for long-term capital growth (eg. undervalued suburbs in the inner ring of Sydney) but you will not find very good yields on houses here.

    I have done some research on the Hunter Valley region and there are a few commentators recommending towns like Singleton and Muswellbrook due to the new mining operations in the region creating a high demand for rentals and employment opportunities.  You can yield 6 to 7% in these areas.

    If you can provide more info about your investment strategy, we might be able to recommend some areas.  For example the top 5 suburbs for a positive cash flow investor may be different from that of a capital gains investor.

    Cheers.

    Profile photo of photon2157photon2157
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    @photon2157
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    Yes I am more after capital growth rather than rental yield, somewhere between 7-10% p.a. growth.
    What would be the suburbs within $400K price range that you would recommend?

    Profile photo of SHoltzSHoltz
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    @sholtz
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    Hi Guys,

    I have been following the growth in the Hunter Region for some time now and would have to agree with "lifestylez" there is so much opportunity for capital growth that I was convinced and hence put a deposit down on a block out in Muswellbrook.

    There are a lot of key indicators that need to be ticked inorder for a area to achieve higher than normal capital growth and I believe Muswellbrook ticks most of those boxes.

    It has huge potential due to mine expansion thus creating more employment opportunities!  There is talk that by 2014 the mines will have to double if not triple their current output to keep up with local and global demand.  However its not only a mining town, there are multiple industries that are also propping up the Hunter, such as tourism, winery, horse breeding, power stations etc etc.

    So photo2157 if you are looking at a great investment opportunity in NSW under $400k then you can't go past the Hunter Region in particular Muswellbrook.

    I hope this helps….

    Cheers!

    Profile photo of Ryan McLeanRyan McLean
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    @ryan-mclean
    Join Date: 2010
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    I have been looking at towns around 2-3 hours away from Sydney. You can still find properties that generate a positive cash flow even that close to Sydney. Though you do need to be creative in your looking.
    Houses that offer dual occupancy can increase rental yields and houses that need TLC can also offer high rental yields.

    I have friends who live in south western Sydney. You can buy a 4 bedroom house for under $400,000. They love it.

    It all depends on what you want out of your investment.

    Ryan McLean
    CashFlow Investor

    My most popular post is on finding positive geared property for sale

    Ryan McLean | On Property
    http://onproperty.com.au
    Email Me

    Profile photo of Placebo_veganPlacebo_vegan
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    I would reccommend areas such as newtown, marrickville, dulwich hill etc.

    Reason being the proximity to the CBD but also because the values generally don't decrease for units around these areas as there is always a demand and somewhat limited stock. The high end properties sometimes decrease in value but the units and middle markets always remain firm.

    Profile photo of RickgRickg
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    @rickg
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    Hi photon,
    below is a message i left for an investor looking sub $300k, may suit you aswell.
    if the Hunter Valley is on your radar? check out Greta, its an old school ugly ducking, located within the coal coridoor, still afforable & located between Maitland & Singleton, Singleton workers are the highest paid in NSW (excluding Sydney) Pacific National are building a new train maintnence depot in Greta & McDonalds have a new restaurant going in, there are several new land sub divisions coming, alot of the older investment properties being offered are under rented. you will pick up something in your price range & generally the lots are large & some suitable for further development.i have recently purchased there myself.
    i hope this helps.

    thanks,

    Profile photo of drewgongdrewgong
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    I totally agree with the above statement i bought in greta 5 yrs ago 3 bed weatherboard 178k now valued 280 also look at kurri kurri i just bought an investment property rent covers repayments (interest only) with the new freeway going through there will be a lot more miners looking there. and just built mcdonnalds kfc aldi its about to boom

    Profile photo of mattstamattsta
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    I'd suggest Sydney suburbs that are out west. Recently went to a property investing conference, and they were pointing out a number of suburbs in Sydney's west where you could invest with a $400K budget only.

    Profile photo of RickgRickg
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    @rickg
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    Yes Kurri is good too, any suburb with easy access to the coal mines, incomes from the mines are huge, its not uncommon to have a young couple both working in a mine & bringing home a combined $250,000 to $300,000 p.a. or more, these high incomes allow for price & rental growth which is just not feasible in other areas.
    The Hunter isnt just a 1 trick pony, besides mining & power generation its also well known for wine production, tourism, breeding/ training race horses & more.
    thanks

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