By Larry Schlesinger
Tuesday, 18 September 2012
Property investment options under $300,000 in Melbourne are relatively limited unless you’re prepared to compromise on quality or are willing to spend extra on renovations, reports Herron Todd White in its September review of residential buying opportunities in this price bracket.
But further afield, in regional Victoria, options under this benchmark (close to the size of an average Australian mortgage, according to the ABS) are much more plentiful – provided you’re not too snobbish about buying a 1970s or 1980s-era brick veneer house.
Moving outside of Melbourne, there are numerous sub-$300,000 opportunities in the Gippsland region, an area that begins immediately east of the suburbs of Melbourne and stretching to the New South Wales border.
“Within our local area $300,000 presents buyers with a number of options,” says HTW
– Warragul and Drouin: well-located circa 1970s to 1980s brick veneer home in good condition or alternatively an entry-level house-and-land package in a new subdivision
– Moe, Morwell or Newborough: a good quality circa 1980s to early 1990s brick veneer home
– Morwell and Newborough: HTW reports some recent sales of 1970s units well under the $300,000 mark “and admittedly where not very stylish or trendy, they do return in the range of 7% to 9% gross rental”.
– Moe and Morwell: large numbers of basic commission-style dwellings available between $90,000 to $150,000, which show gross rental returns of between 7 to 9%.
– Sale/Maffra: a three- to four-bedroom, two-bathroom brick veneer home in an established area, generally circa 1980s to 1990s, on land sizes between 700 and 1,000 square metres.
– Sale: a modern (circa 2005 onwards) townhouse in reasonable proximity to the CBD.
– Maffra: a modern townhouse generally closer in to the CBD than in Sale
– Loch Sport/Golden Beach/Paradise Beach/Seaspray: a modern house in a good location, generally with reasonable water views (Loch Sport) or access to the beach (Golden Beach/Paradise Beach/Seaspray) with rental returns of about 5% for a $300,000 investment
– Sale and Traralgon: circa 1980 three- and four-bedroom dwelling in good location on a large block, a renovated older-style weatherboard dwelling in a central location, a brand -ew townhouse with good rental return of 6% plus.
– Churchill: you can pick up two 1970s brick veneer dwellings earning up to 7% return, also older style rural residential property on one acre.
– Rosedale: new house-and-land package four-bedroom home on 800-square-metre to 900-square-metre block, older-style rural residential property on one to five acres.