There are signs it could be the best season for property sales in a few years, but you need to know where to look.
So where are the best buys on the market?
The pin-point property guide that holds the key to your financial future has revealed the top 200 suburbs to buy a property for under $350,000.More stories from Today Tonight
According to Australian Property Investor magazine's Lauren Cross “not only can you buy a property with $350,000, you can also get capital gain and great rental yield.”
To find the best buys in Sydney, you have to go west. Cabramatta and Campbelltown are the closest you'll get to the CBD. There you can buy a unit for around $300,000.
However if you want a house for that price in New South Wales you'll have to travel much further afield.
“We've got Orange, Scone, Muswellbrook and Mudgee - these are little regional hubs that are all very affordable and the rental yield is just fantastic,” Cross said.
You can buy closer to the city centre in Melbourne where the once ugly ducklings Footscray and St Albans have topped the list. Again you're looking at a unit, but in Frankston North you can buy a house for $250,000.
“With gentrification and as people are getting pushed out of the CBD they're looking at these ‘ten kilometre’ areas, saying ‘where can I afford to buy’,” Cross said.
In Brisbane you can find houses in the mid $200,000 price range in Inala and Woodridge. On the bay at Russell Island it's even cheaper. In fact, it’s amongst the cheapest suburbs in Australia where a three bedroom home can be found for just $165,000.
“They're very affordable and they pay for themselves,” Cross said.
An island paradise is the last place reno kings Paul Eslick and Geoff Doidge would expect to find a bargain buy with great potential, but even they admit there are some good opportunities, because it's an ideal place to live.
With one two bedroom cottage selling for a mere $159,000 “there are hidden gems out there and I suggest everyone go out and start looking, because they are out there,” the reno kings said.
Property prices have dropped by seven and a half per cent since the market peaked but let that be no indication of the bargains you can snap up.
“Investors have a chance right now to get into the market, while interest rates are low and property prices are low,” Cross said.
Just don't forget to do your homework.The reno kings say it's easy to fall into a cheap property trap. Here are their top tips to avoid that:
- Don't follow the herd, follow the infrastructure. look for new developments - roads, train lines.
- Buy where the land value is close to the asking price.
- Invest where accommodation is in demand.
- Search for houses that have a twist - something you can add rooms to.
- Don't try to turn a lemon into lemonade. Buy the right property at the start and you're guaranteed to make a good return.
- Australian Property Investor - www.apimagazine.com.au
This reporter is on Twitter at @AdamMarshallTT
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