How to invest $200k in property

Hahaha JDP1. I have been reading a number of Brisbane threads and have seen a number of your posts.

I assume when you mean slightly negative gear, the costs incurred on the IP should only exceed the income by a small margin.

Also, to clarify, I assume you mean an IP that is likely to achieve capital growth might be more preferable as opposed to one with a higher yield but possibly lower capital growth?

 

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Yes. Your salary makes it a bit tough to go too negative. I would not suggest too negatively geared, despite your excellent savings rate.

Yes, thats exactly what i mean.
The question i would ask if I were you is where is the growth gonna come from?
You said it wont likely be from your salary, ok then from where? shares? other investments etc?
If none of the above, then id look for property to deliver that growth...hence the focus more on growth, balanced by what you can afford.

 

Don't do anything. Leave the money in the bank for the next three months and spend that time learning. Read books on property investment and ask questions and check in here daily. After three months you will know heaps and with that $200k as a starting point you will do very well.

On your income a cash flow strategy is the way to go, but stay away from units: I'd buy houses with a land component in other major cities and regional areas outside of Melbourne and Sydney, town houses with courtyards can also work. If you must buy in Melbourne I would look at the Western suburbs atm.

 

Definitely worth chatting to a broker who will be able to map out what's possible based on your circumstances and integrate that with your investment goals (and probably help you get clearer on those too!).

I get the feeling you'd get the best bang for your buck doing 88% lends on IPs in the $300-$350k range, all returning 6% or more.

Your income and monthly rent expense will be the big limiting factors, so the higher your rent returns on each property, the better.

88% lends will allow you to expand your portfolio further and retain a larger buffer.