I have about 300k+ cash at the moment, don't own any real estate, currently renting in Sydney and my income puts me in the 250k-300k bracket (gross). I guess I'd like to take advantage of the tax benefits but at the same time buy something sensible below 450k with strong consistent rental yields (i'd like to buy this for my retirement as well). I'd like to avoid the sydney / melbourne bubble as the yields gross / net seem very low 1-2% / -1% if possible. I was thinking of paying 20% down and keeping the rest in offset or investing a smaller portion in equities / bonds to blend in a better return overall. Edit: Just like to add I don't want to move as my job is in tech and I won't be able to find it outside Sydney/Melbourne or USA. I'd like to rentvest if possible?
Perhaps if you are planning to retire there, you should first decide where you want to retire? (unless you plan on selling the property to buy something else at retirement? This is pretty much achievable within a 1 hour commute to SYD (or probably MEL) at the present time. As BA's we have been buying 2-3 brm villas - some with no strata fees (only 2 in the complex) for around $400K(ish) renting for $350-380pw which is closer to the old rule-of-thumb 5% gross rental yield. There is no bubble. What there is, is a shortage of listings in places people want to live. Then there are the lowest interest rates we have ever had in this country. So limited supply, high demand, low cost of money = (you guessed it) price gains. Economics 101.
