Help needed

Discussion in 'Investment Strategy' started by mick0123, 17th Apr, 2017.

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  1. mick0123

    mick0123 Active Member

    Joined:
    13th Dec, 2016
    Posts:
    39
    Location:
    north sydney
    Afternoon all.

    Its been an interesting easter for me and I have been left with a decision to make over the next few days which I would like some advise on.

    1) property in Kings Park/Albanvale VIC which has a gross yield of 3.5%. Block size is about 560sqm with an older house
    2) property in Moreton Bay QLD with a gross yield around 6/6.5%. The house is good as is the block

    I think both areas have good growth prospects long term but I cant take both.

    Obviously....Moreton Bay will provide me with cash flow and long term cash flow. Kings Park will provide me with strong capital and low cash flow.
     
  2. willister

    willister Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    760
    Location:
    Melbourne
    I don't know about Moreton Bay so can't comment. If I had to choose Albanvale or Kings Park, I'd punt on Kings Park - closer to St. Albans - a thriving town and my old stomping ground. Rail is now underground, town is unrecognisable from the early 90s, house prices booming, what more can I say?

    Houses are also very newish - mid to late 80s? Very well furbished. I dont know about rental rates though.
     
    ashaarrh likes this.
  3. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    5,301
    Location:
    In the Tweed
    So you cant keep both, and need to choose.

    Easy, keep the better cash flow ;)

    This will enable you to save/service another IP sooner, and at worse provide a buffer for when rates rise :cool:
     
  4. Wendy Chamberlain

    Wendy Chamberlain Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    96
    Location:
    Melbourne
    Buy the property that best fits into your overall investment strategy. Cash flow? Capital growth? Both? Can either choice provide you with a property that lets you manufacture some growth down the track (sub divide, etc). Only you know the answer, as it is your strategy you are trying to fit within.
     

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