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.
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.
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
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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