Are you an investor looking for the elusive ‘holy grail’ of property purchase? Have you been searching high and low in the inner-suburbs, not finding a property that ‘adds up’ when it comes to a positive return? Today’s Belle Property blog looks at an array of locations that savvy and adventurous property investors may look to find a ‘perfect storm’ of investment – but buyer beware, because all inexpensive property will have some hurdles to overcome before they become winning investments. Take a closer look.
Think it’s impossible to snaffle a property for under $100,000? Not so. But first, pack your ruck-sack and load up the 4WD because we’re going bush to find these bargains! Inner-suburban property is where you’re likely to experience the strongest capital growth, high rental yields and tenant demand. As you edge further from capital or regional centres, the cost of buying becomes less – but with it so does market demand and return on investment. This isn’t to say that you can’t buy well in holiday centres or in smaller communities – you just need to make sure you’re aware of what you’re purchasing well in advance. Some handy basics to think about before you head off the beaten path with your hard-earned deposit include:
- Research. Have you done it? What kind of population live in the town you’re considering – are they fly-in fly-out workers who lease at a high return, or are they a dwindling population without secure employment opportunities?
- Will you be happy to purchase a property which offers positively geared rental return in exchange for little capital growth in the long run?
- Is the area you’re considering one you’d like to move to yourself in future? If so, you may be able to combine investment goals with personal goals.
- Are you prepared to invest in renovations necessary to make an inexpensive home move liveable for tenants, increasing your rental return?
- Inquire with the property experts at Belle Property to find out the market stats for selected suburbs. How long do homes stay vacant before being let? How many homes have sold in the area in the past month, and how many are on the market?
- Follow the industry. If there is employment or new government investment in an area, likelihood is job-seekers will need homes to live in and your rent will be paid. Think agricultural growth sectors such as Orange in NSW.
Areas which offer ultra-cheap purchasing for brave buyers include Queensland’s Cunnamulla (median sale price $59,500) and Quilpie (median sale price $97,000), Bourke in New South Wales (median sale price $75,000) and Birchip (median sale price $88,500) and Wycheproof (median sale price $90,000) down south in Victoria. Do your homework and weigh up all your options before deciding if the sub-$100,000 property market is for you!