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Best places for buying a $500,000 investment property; Experts point to Brisbane
Topic Started: 19 Jul 2017, 08:16 AM (982 Views)
Bardon
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Best places for buying a $500,000 investment property

A $500,000 property investment could buy a bedsit on the fringes of Sydney or a large house near the hub of Hobart, shows a review of the nation's property markets by valuer Herron Todd White (HTW).

Some markets are sinking and others soaring as analysts continue to guess whether Sydney and Melbourne's record run will end in slow deflation or a deafening pop that will reverberate around the nation and shake the economy.

"We are too complex a nation to be contained in the simple proposition 'Australia is unaffordable'," says Brendan Hulcombe​, chief executive at Herron Todd White. "Truth is there are places to park $500,000 in almost every single city across Australia."

Hulcombe says the key to profitable investing is finding a quality property close to amenities, transport and some unique quality that is going to attract tenants and provide income and capital growth.

Twenty years ago an investor with a lazy $500,000 for buying Sydney real estate could have purchased two median-priced houses within commuting distance of the central business district (CBD).

These days the same investor would have to make do with a two-bedroom fibro-clad house in Mount Victoria, about 120km north-west of Sydney and a two-hour drive in light traffic.

HTW'S​ network of offices in the nation's capitals were asked to provide suburbs offering the best value for $500,000.

Sydney

An investment of $500,000 is only likely to buy a unit or vacant land in new subdivisions around Fairfield and Liverpool, respectively about 31km and more than 40km from Sydney's CBD, says Kim Quick, HTW residential director.

They are located in the central hub of the south-west region and close to the future Sydney Airport at Badgerys Creek.

Vacant land sites for $500,000 are available around Edmondson Park, roughly 45km from the CBD, and about 20km further out in Harrington Park.

In northern Sydney the budget might buy a one-bedroom unit without a car park in St Leonards, about 7km from the CBD.

In Granville, Auburn and Guildford, about 26km west of the CBD, $500,000 might buy a small two-bedroom, one-bathroom 1970's unit.

On the eastern fringe of Sydney's CBD, the budget could buy a studio unit in Darlinghurst and Elizabeth Bay, ranging in size from 25 to 45 square meters.

Canberra

There are plenty of units coming on to the market that will match the budget, says Angus Howell, HTW property valuer.

Braddon, Campbell or New Acton in the north are expected to increase in value because they are close to the inner city.

In the detached housing market, that sum could buy you a four-bedroom, two-bathroom home with a two-car garage in Ngunnawal, 19km to the north, and Wanniassa, 20 km to the south.

Melbourne

In the middle to eastern suburbs the budget could buy a two-bedroom apartment in Boronia, about 37km south-east of the CBD, and Blackburn, 24km from the CBD, says Perron King, an HTW director.

One-bedroom or compact two-bedroom units with a car space are available in the inner city.

Along the south-eastern growth corridor, a four-bedroom, two-bathroom house with a double garage on 500 square meters is available in Cranbourne, 50km from the city.

In the western suburbs of Tarneit Wyndham and Werribee, 32km from the CBD, $500,000 could buy you a house and land package. An abundance of apartment building across the inner suburbs of Footscray and Yarraville means two-bedroom apartments can be bought for about $400,000.

In Brunswick, Northcote and Coburg, about 13km north of the CBD, older apartments can still be purchased for about $500,000.

Brisbane

"Despite a generally underwhelming performance since 2008, there's evidence Brisbane has gained popularity in 2017," says HTW Brisbane director David Notley.

There are plenty of options. For house renovators there are opportunities in the northern suburb of Aspley, about 14km from Brisbane's CBD.

Nearby suburbs of Boondall, Bracken Ridge, Deagon or Taigum are "worth a shot", Notley says.

South of the river, investors are recommended to look in Runcorn, Calamvale and Parkinson.

Notley recommends steering clear of high-density apartments. Instead, consider a townhouse in Kedron, 8km north of Brisbane, or Chermside, another 2km north.

In the south, townhouses and "select complexes" in Calamvale, about 20km from the CBD, are an investor's best bet, he says.

Adelaide

"Although there are still countless houses and properties available around $500,000, there is an increasing scarcity of detached dwelling in this price range within proximity of the CBD," says Natalie Patterson, HTW senior valuer.

Adelaide is the most affordable mainland capital with a median house price of $432,000. It is reasonable to expect detached housing within the budget around 20km of the city, Patterson says.

Popular areas offering houses for around $500,000 include Pasadena, about 7km south of Adelaide's CBD, and Hope Valley, 14km north-east.

Croydon Park, 7km north-west of the CBD, is more affordable and close to a new highway improving access to the north and south of the city.

Perth

Top pick is Nollamara, 10km north of the CBD, with a median price of $425,000, says Chris Hinchliffe, HTW director.

In the north, Craigie, 22km from the CBD, is "extremely good value", followed by St James, about 7km south of the CBD, says Hinchliffe.

Buyers in Medina, 38km south of the CBD, can get two older-style freestanding houses on 700 square meters.

Darwin

"Buying property in Darwin has not been as affordable in a very long time," says Keven Chan, HTW property valuer. "It is a buyer's market," he says.

Recommendations in Darwin and inner city Darwin include Stuart Park, Larrakeyah, Parap and Woolner where three-bedroom apartments sell for $360,000-$450,000. Northern suburbs of Nightcliff, Coconut Grove, Millner and Rapid Creek offer entry-level accommodation.

Houses in the less popular suburbs of Malak and Karama have ground-floor, three-bedroom apartments for $350,000-$400,000.

"We expect property prices to remain depressed for the remainder of 2017," says Chan.

Hobart

Sandy Bay, about 3km south of the CBD, Kingston, 13km, and Lindisfarne, 7km north east, are popular postcodes, says Andrea Valentine, HTW assistant property valuer.

In Sandy Bay, which is home to the University of Tasmania and casino, an investor with $500,000 could afford a three-bedroom, one-bathroom apartment.

Kingston, a satellite city near Hobart, has houses from 120 to 160 square metres in the price range, while Lindisfarne offers modern, three-bedroom, two-bathroom houses with a double lock-up garage and water views on a 460 square meter block.



Read more: http://www.afr.com/real-estate/best-places-for-buying-a-500000-investment-property-20170712-gx9rkq#ixzz4nDi95N1M
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Rufus
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There are a lot of Brisbane suburbs where $500K will buy a substantial home. Not so much inner city suburbs, but still only 10K from the CBD with fast access to the CBD.

The full HTW report is available here - https://www.htw.com.au/wp-content/uploads/Month-in-Review-July-2017-Residential.pdf

Take risks - if you win you will become wealthy, if you lose you will become wise
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Tyson
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Rufus
19 Jul 2017, 09:05 AM
There are a lot of Brisbane suburbs where $500K will buy a substantial home. Not so much inner city suburbs, but still only 10K from the CBD with fast access to the CBD.

The full HTW report is available here - https://www.htw.com.au/wp-content/uploads/Month-in-Review-July-2017-Residential.pdf

Man that report picked some of the exact places I have been looking at.

Hopefully it doesn't cause the price in those areas to drive up a bit before I get a chance to buy another property!
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stinkbug
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Bardon
19 Jul 2017, 08:16 AM

Canberra

There are plenty of units coming on to the market that will match the budget, says Angus Howell, HTW property valuer.

Braddon, Campbell or New Acton in the north are expected to increase in value because they are close to the inner city.

In the detached housing market, that sum could buy you a four-bedroom, two-bathroom home with a two-car garage in Ngunnawal, 19km to the north, and Wanniassa, 20 km to the south.
For $500k in Canberra I'd be looking at either a 3 bedroom house as close as possible to one of the major town centres, or buying 2 units (one in Queanbeyan and one in ACT).
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Foxy
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Zero is coming...

of course the assumption is that if you had $500,000 you would invest it into a property :D :D :D
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Tyson
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Foxy
20 Jul 2017, 11:36 AM
of course the assumption is that if you had $500,000 you would invest it into a property :D :D :D
Aside from the fact that most people don't buy houses outright, where would you put $500k Foxy?
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Rufus
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Qld is a mixed bag.

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Edited by Rufus, 20 Jul 2017, 02:42 PM.
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Tyson
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Rufus
20 Jul 2017, 02:42 PM
Qld is a mixed bag.

Posted Image
All those towns in the negative are mining towns.

I've lived in every one of those negative towns. None of those negatives come as a shock to me since every one of those negative towns have had a huge slowdown in mining since roughly 2011. From 2011 - Present, mining projects have been slowing down and wrapping up. Of course in 2011 it wasn't mass redundancies, however it's been a steady downturn from that date onwards with big hits in probably 2012 - 2013.

Gladstone is the hardest hit since it's the biggest mining town of all of those, with a number of huge projects cutting jobs roughly around the same time and those that still have a job were forced to take huge pay cuts. I'm talking 50k+ minimum pay cuts, so these don't go unnoticed. Gladstone is no where near the bottom despite what people say otherwise. Also to those saying that you can't force pay cuts to union award rates, there's other ways to cut pay. Such as getting rid of overtime, getting rid of the big site uplift bonuses, getting rid of living away from home allowances and rent paid by work, people getting fired and re-hired under different titles to put them on a lower award rate etc.

My advice: don't buy in a mining town no matter how tempting it is at the time.

I could've called all those crashes in 2012 (those with more experience than me would've called it in 2010 or 2011).

Rockhampton, Livingstone and Gladstone will continue to keep going down for a few years yet, but even once it bottoms out the price won't go up any time soon either. As for the other negative towns, I can't accurately give an opinion on those off the top of my head, I'd have to talk to a few peers to find out how those towns are actually going.
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