How to buy a house for $100,000 – or less
Published 1:26 am 5 Aug 2020
Money has never been tighter for many Australian households as the country weathers the COVID-19 storm. But the dream of home ownership or property investment might be more accessible than you think. DGI Founder and CEO Dominique Grubisa explains how to pick up a house for little more than the cost of a new car.
One hundred thousand dollars doesn’t buy you much in many Australian housing markets these days. Even with the economic fallout of coronavirus, the average asking price for a house in both Sydney and Melbourne is in excess of $1 million. A mere $100,000 won’t even cover half a 20-per cent deposit.
But for investors and owner-occupiers prepared to think outside the box, $100,000 can buy a surprisingly large chunk of Australian property. By looking outside capital cities, considering distressed properties and being prepared to address cosmetic issues, it’s possible to pick up completely liveable houses for as little as $80,0000 or $90,000. In some locations, homes can be bought for under $60,000.
In many cases, the rental income from tenants would more than cover mortgage repayments entirely. What’s more, by snapping up property below market value, undertaking improvements and then reselling during a market upturn, you could stand to make a tidy profit.
Take a look at these real examples of sub-$100,000 properties currently on the market across the country.
23 Bourke Street, Glen Innes, NSW
Credit: Realestate.com.au & CoreLogic
Not all of NSW is as expensive as Sydney. In the picture-perfect New England town of Glen Innes, you can pick up this two-bedroom cottage for a mere $99,500, perhaps less if you bargain strongly. The deceased estate features two double bedrooms, an open kitchen, wooden floorboards and a lock-up garage. It currently rents for $600 per month. With a 20-per cent deposit down, the estimated monthly repayments would be $400 per month, putting a potential buyer ahead $200 a month at current interest rates.
36 Cudgel Street, Yanco, NSW
Credit: Realestate.com.au & CoreLogic
Are you looking for something even more affordable? Still, in NSW, the town of Yanco in the Riverina district boasts a property with two partly completed flats on an acre of land for just $80,000. Another deceased estate, the property is situated in town and features an internal laundry, secure parking and frontage to two streets. With a 20-per cent deposit down, the estimated monthly repayment would be just $266. A potential buyer who was able to find a permanent tenant would likely be well ahead.
11 Fredrick Road, Port Pirie, South Australia
Moving on to South Australia, the seaport town of Port Pirie offers the most affordable property on this list. Priced at a jaw-dropping $55,000 this mortgagee-in-possession sale is for a freestanding home on the outer fringe of town. Advertising images show a boarded-up property, although most of the living spaces appears liveable, even if they are extremely worn. The property covers just under 600m2 and comes with a three-car garage. With the deposit taken care of, a potential buyer could expect monthly repayments of $230 per month. Given Port Pirie’s air quality is improving due to a recent upgrade of the local processing plant, values could be set to rise.
1/15 Carmichael Court, Wynnum West, Queensland
Even capital cities can provide some sub-$100,000 properties if you look hard enough. In the Brisbane suburb of Wynnum West, this studio unit is on the market for offers over $89,000. The deceased estate features a full kitchen and separate bathroom, air-conditioning and a private back veranda. Ideally suited for a retiree, the unit is close to amenities and not far from the coast and Brisbane River. Repayments would likely be about $360 per month.
7 Stratford Street, Pingelly, Western Australia
Moving on to WA, this cute-as-a-button, perfectly liveable home is on the market in the Wheatbelt region town of Pingelly for just $89,000. Located on two blocks with separate title, it features high ceilings, pressed tin walls, and lots of period features. For sale following a divorce, the total property size is 2,024m2. With a 20-per cent deposit down, the estimated monthly repayments would be $358 per month.
5 Rupert Street, Port Augusta, South Australia
Sometimes desirable properties are in the sub-$100,000 price range because they are in need of some TLC. This property in the South Australian seaport town of Port Augusta appears to be a prime example. Being sold by the Public Trustee for just $85,000, the sale pictures show the interior requires extensive work to make it habitable. However, it has plenty of attractive features and sits not far from the centre of town on a 1,002m2 lot. The property boasts security shutters, a carport and is close to the primary school. Monthly repayments on loan would be about $356.
So, don’t give up your dreams of property investment or homeownership. By being flexible and thinking laterally, you may be able to secure yourself an absolute bargain.
To learn more about acquiring and selling a distressed property, Register to complete our free Real Estate Rescue for beginners online course.
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