This month’s residential submissions ask our valuers, “What should I buy with $750,000?”. With our extensive national coverage of residential markets, choosing how best to spend a set amount delivers an interesting comparison across all locations. After all, assessing value is what our professionals do every day throughout the nation.
The results of spending $750,000 in markets as disparate as Sydney versus Warrnambool are interesting, but also obvious. While buyers can secure a four-bedroom, two-bathroom home in one of those locations, the other will barely deliver a bedsit on a busy road (no prizes for guessing which is which).
But this theme also lets us look at how the market has changed over time. This is because in July 2020, we studied where to spend $700,000 around the country. Comparing the results from these submissions to the ones in this latest edition tells us plenty about the security delivered by real estate investment.
For example, in 2020, $700,000 in Western Sydney would secure a one-year-old, two-bedroom unit in Parramatta, or even a house and granny flat in St Marys while a two-bed unit in Marrickville went for $655,000. Looking at the 2023 options and you can still buy a unit in Paramatta for $750,000, but it will be a few years older than that 2020 purchase. In Marrickville that same two-bed unit described above would be closer to $750,000 and the home in St Marys would be a small two-bed cottage in need of an upgrade.
In Melbourne, a new house-and-land package in 2020 would have cost between $500,000 and $650,000 in Glenroy, Fawkner and Reservoir, but in 2023 you’ll be paying above $750,000 for most detached homes and even some townhouses. Detached two- or three-bedroom housing would have been available in Ringwood, Warrandyte, Mitcham and Doncaster for $700,000 in 2020. A look at today’s sales suggests buying in those same suburbs with a $750,000 budget will get you a new two-bed unit in an older duplex unit. A stand-alone house will be outside your budget.
In Brisbane, your dollar would have gone even further. Very desirable suburbs such as Hendra, Wooloowin and Clayfield all had entry-level, pre- and post-war dwellings on 405 square metres in secondary positions for $700,000 back in 2020. In 2023, a detached home for that price is pretty much unimaginable in these suburbs. An older townhouse or unit will be your options. Further out, in 2020 you could secure good quality second hand detached homes or newer townhouses in Stafford, Gordon Park or Kedron. In today’s market, your chance of getting a detached home that isn’t small, in poor condition and/or on a main road is slim for $750,000.
And across all these markets, rents have only increased since 2020 with many producing a positive cashflow by 2023.
As you can see, despite a global pandemic and economic uncertainty, residential property has proved to be a solid asset – whether as a home or investment. The key is always to choose your real estate based on solid fundamentals and sound independent advice. History shows that those who invest $750,000 today will look back in 2026 pleased with their decision.
National Director, Group Risk and Compliance