Hey Robbie, I invest in low income areas .Kingswood, St Mary's, Penrith, Cranebrook and possibly Mount Druitt(if your game enough), Also Richard above is right, Orange is a good area as well as tamworth. Something important to do when looking for a property in a low income area is to try and target tenants that have being long term and have kept the place in tidy condition. They'll stay on and you don;t have to worry about getting a dodgy tenant. Hope this helps
Wagga, wagga
West Sydney (St Mary’s, Mount Druit, etc)
Logan area of SE Qld
North Adelaide (Elizabeth)
I like Queanbeyan, NSW as well (for units). I wouldn’t say it was dodgy though (I’m sure others will argue the opposite)- I live just across the border
Check out the back of an API or YIP magazine as well. They show the median prices in each suburb in each state. They also provide rental yield figures. This will help you initially locate some areas.
You could also do a refined search on realestate.com.au
Hi Robbie. You want to buy cheap then look no further than Davoran Park, Smithfield or parts of Elizabeth in Adelaide's northern suburbs. By cheap, I mean you can still buy a Torrens Titled 3 bedroom ex SA Housing Trust Duplex for under (YES, less than) $150,000. This section of Davoran Park is <moderator: delete language> but there is more and more 'new' money coming into the area as well as new housing estates so capital growth will happen and is happening. Adelaide is still the cheapest median housed property market on mainland Australia so if it's cheap you want then there are certainly parts of Adelaide to have a look at.
Instant positive cash flow as the rents typically fall between $180 -$250/week. Because of the very low demographics – predominately retirees on an Aged Pension, tenants on DSP or Dole and very low wage earners- vacancy rates are never above about 0.8% Yes, always less than 1%. It ius just too cheap to rent almost anywhere else so they don't stay vacant for long. Ideally, what alot of investors try and do is buy the double duplex that is joined, bulldoze, and build 2 new free standing homes that are already Torrens Titled. But Jamie, as lucrative as this may sound, 'caveat emptor'. As a Buyer's Agent, I personally check out a prospective property in areas of the Playford Council such as Davoran Park first because, just are there as some real diamonds amongst the rough, there are a LOT of just 'rough'.
PS Jamie. The now famous ' Young Gun' May edition of API magazine lists Davoran Park House median at $205K based on 105 sales and a median rental of $220/week.
For all you novice investors PLEASE get yourself a copy of Australian Property Investor magazine and you'll get more knowledge than you'll know what to handle. It, like this forum, is a GREAT place to start your education!
Just pick your street Jamie, there are parts of Davoren Park that I would invest in and parts I’d steer well clear of. The area is part of a govt initiative called Playford Alive and the aim is to rejuvenate the area and get rid of its reputation. I have been along streets however where you’d be hard pressed to find a sheet of glass in a front window! I almost bought a duplex in South Elizabeth for $130k each side, unfortunately I wasn’t fast enough You can certainly find duplexes (as in both sides – 2 titles and approx 1000sqm) for $300K still in this area.
I would recommend Tamworth – I recently purchased there. You will need to look around hard to find a good property at your pricepoint however somewhere around the Westdale area would be recommended, but try to find something in a "better part" of the area.