Five under $500,000 - October 10, 2018
Back before that pesky banking royal commission, the big four banks got real trigger-happy and handed out interest-only loans to applicants who wouldn’t get them now.
We won’t bore you, but in a nutshell, interest-only loans last for about five years. They make the mortgage repayments much more affordable for that period of time, because buyers don’t have to start paying down the principal until the interest-only stint is over. Then the repayments get bumped up to compensate for the fact that these buyers haven’t been paying down the principal loan.
In short: a bunch of people are gonna need to sell when they can’t afford the higher repayments.
That means there’ll soon be some good finds on the market. If you can afford to secure one, power to you. The below listings aren’t necessarily desperate sales (we obviously don’t know the vendor’s circumstances), but they give you an idea of what’s up for grabs if you’re looking to invest, and can actually afford it.
8/300 Gillies Street, Wendouree
Yeah, ok. You’re going to need to make a pretty big lifestyle change if you want to buy this vintage banger. Wendouree is on the edge of Ballarat, about 90 minutes out of Melbourne. This one-bedroom unit on the ground floor of a converted monastery is something else. It has a formal dining room and a separate lounge room, so you could convert to a two-bedder if needed. Whatever, $428,000 - $448,000 seems like a good deal. You’d be forking out an extra million for this place if you were buying the equivalent in Melbourne.
13 Torrens Street, Richmond, Tasmania
This is pricey, but we’re putting it on the list because it’s a renovated three-bedder just 25-kilometres from central Hobart, going for $480,000. Plus, there’s a studio out the back that’s begging for a reno. Get that done and you’ve got some extra Airbnb income. In the meantime you can sit on the killer deck with a wine and watch the world go by.
116 Sydenham Road, Norwood
No millennial dreamed of living in Adelaide growing up, but now we’re prospective homebuyers it’s a different story. Adelaide is an affordable BABE. There’s no price guide on this one, annoyingly, but comparable recent sales and a conservative market suggest you should be able to get this beauty for circa $500,000. And you get polished floorboards, two bedrooms, new kitchen and a dining room. We’ll sit back and watch the Melburnians and Sydneysiders roll up for this one.
3/84 Gold Street, Collingwood, Melbourne
Gold by name, gold by nature. This one-bedder in a block of six comes with a car park, which is bloody impressive in Collingwood. It’s close to Smith and Johnston streets so you’ll save a shitload on ubers to your favourite bars. It’s up for private sale and at $359,000 it feels weirdly cheap, (newer places are going for $400,000+) so get a building inspection and make sure it’s up to scratch.
1/6 Livingstone Place Newport, NSW
No sign of the apparent market crisis here. But there is this place in Newport, not too far from Palm Beach. It’s a bit of a catch. The advertised price is $520,00, but in an unstable market you might be able to get ‘em down. It’s a renovated one-bedder with polished timber floors, a balcony and a car space, too. Rejoice! Or, sit tight and see what happens in the next six months or so…
Hey! We’re working on an exciting project and we want to hear from millennial property experts and young buyers with a great story. Got one? Get in touch: firstname.lastname@example.org