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  • Profile photo of peterpeter
    Participant
    @chining
    Join Date: 2017
    Post Count: 3

    I am trying to buy an investment property priced around 300k to 400k. It must be a seperated house so the land value would increase over the years. After looking around melbourne suburbs, the options are very limited. All suburbs falling in this price range are low socioeconomic ones. anyone had any experience with that?
    any advise would be appreciated.

    Profile photo of Anthony ZanattaAnthony Zanatta
    Participant
    @azanatta91
    Join Date: 2016
    Post Count: 25

    Hey Peter, is there any reason that you want to buy in the Melbourne area? Have you considered widening your search to other states which would enable you to choose from a wider range of properties?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Consider that generally lower socio-economic areas have higher rental property ownership than other areas – generally you will find more investors there!

    Yields are usually higher and as you’ve noted – lower entry costs which keeps a steady stream of people looking at them as investments. My entire portfolio would fall into the lower socio/working class areas as the numbers stacked up for each purchase, haven’t had any troubles with this.

    Azanatta91 has mentioned a good point – you may not want to limit yourself just to metro Melbourne if you feel your budget is constrained. In the 300-400k range that puts you near median capital city prices in some other markets, so you can balance entry price vs perceived risk of an area if you feel low socio-economic areas are ‘risky’.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of peterpeter
    Participant
    @chining
    Join Date: 2017
    Post Count: 3

    Hey Peter, is there any reason that you want to buy in the Melbourne area? Have you considered widening your search to other states which would enable you to choose from a wider range of properties?

    Hi, Anthony, I live in melbourne and probably will be in melbourne in the near future. But I am more than happy to consider other states if the CG and rental income are promising.

    Profile photo of peterpeter
    Participant
    @chining
    Join Date: 2017
    Post Count: 3

    My entire portfolio would fall into the lower socio/working class areas as the numbers stacked up for each purchase, haven’t had any troubles with this.

    Thanks for the input. I am looking for the first investment property and there is a lot I need to learn.

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    As others have stated low socio economic properties are not something to be afraid off. You have higher tenant demand, better yields, lower entry price and if you pick right can get some steady cashflow and equity. Plenty of good options in Adelaide, Brisbane and regional NSW areas.

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    There’s nothing wrong with buying in a lower socio economic area providing you’ve calculated the risks involved – and not all socioeconomic areas are the same either!

    Generally speaking – if you can land an IP in an area that’s prime for gentrification then you can experience some decent growth. Same deal with some fringe areas of capital cities. Look at West Syd for example – detached houses were selling for low $200’s not that long ago…that’s no longer the case!

    Cheers

    Jamie

    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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