3rd IP advice - need to narrow down NSW/VIC/QLD

Hi all,

Have posted a few times on here and have been given some great advice by members.

Ready to move onto my 3rd IP with borrowing capacity for $600k, looking for yields ~6% to protect serviceability and will be spending $400-$450k. I aim to buy a 4th and then add value through the portfolio.

Ideally I would like to purchase a freestanding house with a view for granny flat and/or subdivide once I have acquired CG. Property will be held for medium to long term. I have considered pockets of Central Coast, Newcastle, Wollongong & surrounds, cheaper areas of Brisbane etc.

I like the idea of high yields in SA and some regional areas however I have a nervousness about moving too far away from the big smoke for risk of volatile CG.

I will be using the services of an independent investment advisory & BA (suggestions welcome) however am calling on the experts to guide me on where I can consider narrowing my search

Any help would be appreciated,

 

That's a v wide net. .. When u say independent investment advisory do u mean the property investment companies?? Like empower,positive opencorp and the likes...

 

You are not going to get 6% rental yields in any of the NSW areas you've listed. With prices having risen due to the ripple effect from Sydney's boom you are looking at 4.2-4.8% yields only. That is of course if you only buy a single income property and not one with a granny flat already built.

 

I have noted a few properties in suburbs close to Newcastle (Glendale, Argenton) approaching 6%. Interested in movement in Melbourne's outer west suburbs - I have family over there and have seen things move pretty quickly.

My PM recently purchased a 3 bedder in Central coast and spent $10k on cosmetics renos and now earning a 7% yield. Not sure about growth aspects but not at a bad result cash-flow wise.

If the property was within a few hours drive of Sydney I would be comfortable with larger add on (granny flat) whereas VIC or BNE would be more limited to cosmetic reno as this stage.

Yes, an independent advisory and BA that will assist through the search & purchase.