Best property to buy for $300,000 or less. Interesting question. How do we approach it? Every market’s different and have different price points, if we compare Sydney to Melbourne, even to Brisbane, to Perth, to Adelaide, and what you can get for 300,000. My scaling rule of thumb is a house over a townhouse, a townhouse over an apartment. That’s how I always look at it. But what are we going to get in each city retrospectively for that sum of money? We’re going to have to go rural in New South Wales and Melbourne, most likely, for anything around 300,000, which can be highly risky depending on the industries that are in that town.
If we’re in Queensland, I think we’re going to have to go to the outer regions, or we might have to go town houses, and again, what are we going to get? Adelaide’s an attractive proposition for me at the moment. It is possible to get investment from $300,000 or less, whether they’re new or existing. Positive cashflow yielding scenarios. But I’m always trying to gear myself to look for a Torrens title house, if possible, over a unit. What I find is unit prices in slower markets have less growth and longer time on the market to sell. That’s the risk with units.
So if we’re going to be looking at a unit, an apartment, at that price point, I’d be looking at an ownership scenario where the strategy is we’re buying it for the long term on a pay down and we want to own it. That’s the fundamental key important thing there, if we’re going to go down that strategy. But it’s a very good question. I’ve had in-state investors that have come to me and I’ve found them brand new tax-deductible houses for 280,000, for example, in suburbia of Adelaide. So there are stock available for that price point and it seems to be a comfortable price point for a lot of people.