NSW if you got 800 k budget

That's a shocking return, I've been thinking maybe I should get into this market but that sort of return tells me it's over valued.
Rents need to catch up for a few years.

 

Shouldnt have said melbourne
More mid ring western suburbs
I think you can still get 4 -5% in some areas under 400k but i havnt looked in well.over a year so havnt got the finger on the pulse

 

The kind of investor that wants to gamble on Capital growth. Albion is poorer suburb than Sunshine. i got a place though not in these suburbs but sort of next door giving me 550 per week and a tenant in which hasn't even settled till next month. it would rake in 1K a month positive.

 

a house or a unit? thx

 

House

 

Which area of Melbourne is this? I'm tossing up between another in Adelaide or Melbourne next, post election and then Perth in maybe 12 months.

 

North - I thought u were one of those Brisbane investors who wouldn't go interstate?

 

No I certainly have never said or suggested that. I don't get some of the negativity around BN and questioned it's basis, I have a long term interest in the BN but I try to not let it cloud my judgement.
My last 3 purchases have been in Adelaide and the 2 before that NSW.
We started buying in BN in the 90s.
To avoid paying more Land Tax we needed to diversify, haven't gone down the trust road as a house in BCC LGA would most likely exceed the 350k land threshold and despite the opinions of some of the abolish NGing fans here I think property investors already get slugged enough tax when purchasing.

 

Are you saying that that you have bought a place that is settling in a months time that has a tenant in place paying $550 per week?
Based on your $1000 a month calc the property is worth...... 250k?
Sounds like creative accounting but please prove me wrong

 

Larger deposit and price was obviously more than 250k also has a granny flat, full solar with 6 water tanks returning ard $500-600 per quarter. Will share more when it settles

 

Hope you are well,
I have been investing for 10 years now and more trying to help others. Mainly you want to look at two main driving factors and this would be population growth and infrastructure. To be honest if you look at ABS website Melbourne is behind Sydney in regards to population. The most highest growth at the moment would be Brisbane. You can buy manyfor 800k in Brisbane and diversify your risk. However, you have to look at all factors and sometimes not always black and white

 

http://www.abs.gov.au/ausstats/[email protected]/lookup/3218.0Media%20Release12014-15

Just looked it up, released in March. Appears in terms of growth according to the ABS Melbourne is growing faster? You are right that the population is bigger though.

I'm not doing nearly as well as melbournian but I am getting 4.25 % out of a place in Caroline Springs

 

I'm waiting for the updated pop growth figures from the census. Last census had Perth going gangbusters for 30+ years, I think followed by Melbourne. I'm wondering whether the mining changes will change that outlook or not...
At the moment I'm thinking Perth (about 5 on the property clock in some areas), Hobart (a little cash flow) and them Melbourne (maybe devt block if there are any left!).

 

if you are going to hold for 10 + years, you should be considering NRAS, as it will provide a dramatic uplift in rental yield, effectively buying you the time to see the next credit expansion cycle evolve... which is likely to be @ 8-9 years away for Sydney. It's when everyone can access money that prices really go kapow. The excellent tax free surpluses will also facilitate aggressive debt reduction, which provides for improved borrowing capacity later on.

 

how did you come to that conclusion, the most highest growth in population would be brisbane? Melbourne is the highest in percentage and population changes numbers from the data from ABS. It still lacks total population from sydney but it nearly doubles in population changes compared to brisbane. a 800K IP can still outperform 2-3 ips of 300K

 

Just want to point out the table you have included is data per state, not city

 

Data Released March 2016 showing 2.1% growth in Melbourne metro area.

 

true but if you see the table above one can assume 70-80% would be the capital unless from 109K , 40K is going to country victoria or from 59K, 25K is going Mount Isa which is unlikely. But yeah does not seem that brisbane or qld has the highest population growth.

 

Hi Melbournian
Do you mind sharing our knowledge about the legality of leasing out main house and granny flat of an investment property? This is something hanging in my head for a while..
regards
tina

 

You can rent it out tina however it would be on a single lease. You can't rent it out separately to 2 different parties (or leases). Having an IP with a granny is ok for e.g. a family, with 3 teenage kids or a family whose grandparents live with them or alternatively, you can rent it out to a group of students (where all the names) are on the lease. It is also dependant on your council as they have other rules to it.