How to invest in real estate for under $100,000

Land plots, parking spots and property that won’t break the bank in New South Wales, Victoria and Queensland.

Are you interested in investing but scared off by the million dollar plus price tags on properties in our captial cities? It might not seem like it, but taking the plunge into the market on a tight budget is not actually an impossible feat.

TODAY chatted with Money magazine Editor Effie Zahos on how to invest in real estate with $100,000.

TODAY: So, $100,000 – can that still go a long way or not?

ZAHOS: Surprisingly it can. A whole house on its own? Probably not. But there are alternatives that you can invest in. Now what just keeps rising and rising is granny flats. Granny flats have seen a huge rise because of affordability issues. And in New South Wales the laws changed some time ago because of affordability and it’s a lot easier and quicker to put a granny flat in. Anywhere from $100-$120,000 will get you an amazing granny flat.

TODAY: Are there any negatives or downsides to that?

ZAHOS: You have to realise that not everyone wants a granny flat when you’re selling because it’s not in a separate title so there’s privacy issues and also capital gains tax. A lot of people don’t realise that. The house which is exempt from capital gains tax will be their capital gains tax. Because you’re making money out of it. It depends of the size of the granny flat and also the profit you’ve made on your own home and how long you’ve rented that granny flat out.

TODAY: What about commercial spaces and residential investments? 

ZAHOS: It’s a lot cheaper to get in to a commercial property, you can find something quite decent for around $100,000. Returns are often higher than a home. Homes are yielding probably around 3-to-4 and commercial property can be around 7. But there are risks. Tenants take longer to get in, but on the pro side, they sign for about 3 – 10 years as opposed to someone renting out your home. Again, you can get onto realestate.com.au and have a look.

9Saver has compiled a list of additional real estate options that would suit Aussies who want to buy on a budget.

Here are a few picks of where you could invest your money in NSW, Victoria and Queensland. And while you might want to buy an actual property – land is also an option if you’re investing on a budget.

NSW

The options are admittedly limited in Sydney – but if you’re willing to go out west, there are properties available for under $100,000.

A holiday cabin in Wiseman’s Ferry for $95,000 – this two-bedroom cabin can be found in Torrens Water Ski Park — a private park on the banks of the Hawkesbury River.

If you’re over 55 (or want to purchase a property that an older family member could use) — this $100,000 three-bedroom property in the Igenia Lifestyle residental community can be found in the Penrith District, close the the Nepean River.

You can also buy plots of land for under $100,000 across New South Wales.

Victoria

A car space in Melbourne’s SouthBank is available for $85,000 — you’ll be in good company as the space sits in BPM residential property, Shadow Play.

Ballarat East — which Zahos identified as a property hotspot in 2018 — also has this lot of residential land available for $99,000.

Queensland

This three bedroom property in north-east Brisbane suburb Nundah is just $89,000 — though it is for the house only.

Plus, we’ve already brought you options for buying property under $100,000 in Kangaroo Point, Ipswich and even Brisbane North.

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.