Three-bedroom house to car parking bay; what can investors get for $250,000?
Property buys for $250,000 or less come with their own quirks and nuanced investment profile but whether it's a serviced apartment in Perth or a car bay in Sydney, there are options out there.
While some investors have taken a back seat amid rising interest rates, overly competitive markets and high inflation, other investors are jumping straight in on sub $250,000 investments.
Interestingly, you can still invest around Western Australia and beyond with a smaller budget and end up with a prime location – not just a regional bush block with a knock over shack.
Buying residential property under $250,000 anywhere in Perth is mostly limited to one-bedroom or studio units within the greater metro area.
The serviced apartment sector is a great pick up for the right investor looking to achieve a consistent and higher rental return for a residential asset.
Strictly for investment purposes and with no opportunity to ever live in the property, serviced apartments are a market sector all to their own that form part of a larger hotel letting pool.
The buyer receives a fixed return on their investment while the hotel group use the property for short term accommodation.
They are a specialised asset class that can represent value buying in Perth under the $250,000 threshold. Some of the properties available present an excellent buying opportunity, especially for those on a tighter budget.
A serviced apartment right at the doorstep of the convention centre is just $220,000.
Located close to the Swan River, this apartment offers a 7 per cent net return but is strictly for investors.
Similarly in Adelaide, investors can purchase an office in the CBD for $200,000.
This prestigious address office comes with ample common facilities, such as a rooftop recreational area, lap pool and gymnasium.
It may be a great commercial investment but buyers need to be aware that if it is vacant when they buy it, they have to pay 10 per cent on top of the purchase price for GST.
Melbourne CBD to regional Queensland
Often, lucrative investment opportunities such as this apartment in Perth and office in Adelaide come with a catch – not suitable for the novice investor.
Property prices in Perth and Adelaide are generally lower than other major cities in Australia, but it is important to note that they have grown significantly over the past two years, pricing many first home buyers and investors out of the market.
Other investments sub-$250,000 include a small CBD studio in Victoria, old shack on a big block in regional Queensland or a single car space in the Sydney CBD.
With a budget of $210,000, you can purchase a tiny studio on Collins Street in the Melbourne CBD.
This tends to be the size of a single garage but some banks won’t lend on property this small, so it is advised to do your research with the bank before you buy.
For investors with an appetite for ‘fixing up’, regional Queensland could meet your criteria. In Mount Isa, investors can purchase a piece of real estate with a three-bedroom house on it for $189,000.
In fact, it includes more than 1,000sqm of land with a small shack and double garage but don’t forget to budget for a little TLC for these style investments, as they will require a bit of work to get them up to liveable condition.
Ambitions in in this budget in Sydney are somewhat humbler.
The median house price in Sydney is currently, $1,174,867, but with $150,000, investors can seek a CBD parking space less than 300 metres from Town Hall Station. Just don’t expect it to be furnished.
