VIC Investment Grade Suburbs - 750k budget

You do realise that nobody can guarantee that you will double your money within 7-10 years. Of course, you've got a much better odds of it happening if you time the market, but I'm not convinced that Melbourne is at bottom.

You also seem a little unsure of the yield you are after. Here you say 4-5%

and here, you've reduced it to 3-3.5%. That's a drop of a whopping 2% from your top of 5% to your low of 3%.

Maybe do more research and learning before jumping in & purchasing.

 

Hi The drop in expected yield of 3-3.5% was based on a previous comment here that i was dreaming for 4-5% with capital growth. Capital Growth is still key for me and as long as i get the property value doubled in 7-10 years (based on what i hear from people that if you buy at the bottom then the next 7-10 year cycle will double your money).

Also I realise that there is no guarantee of value doubling in 7-10 years, there is an assumption there based on historical trends

 

Not a silly question but how much do you rely on past growth to set future growth?
Eg 50% on past 20yrs weighting
20% on past population growth
20% on future population growth
10% on future location growth

Add that to the current net yield to get X%

 

What makes you think that Melbourne is at the bottom? What makes you think you can't get a higher yield than 3.5%? What makes you think the next cycle will be 7-10 years? AND what makes you think that you can't get both yield and capital growth?

 

Varun...if it is Melbourne/Geelong....and under the 650k mark get your running shoes on...that market is heating up again...I am actually quite astounded at the stupidity but it is happening again....I own 10 there..and thought it would take a break but it is heating up again. I was down there Mon/Tue...and it is starting to move...already people locking in anticipation of the 1 Jan FHB govt 5% guarantee.

As for returns....decent quality will struggle to get more than a 4.5% return at the moment...but hey interest rates are now at 3.6-3.8% I/O....so the mortgage is pretty much covered plus some left over for the expenses.

 

Some parts are at bottom...was there Mon/Tue.....yields of 3.5% is more likely in Southeast/East but that is over 800k properties...stuff under 700k can yield about 4.5%.

 

You trying to help me out or just shaking me up

 

This is based on historical trends. Of course there is no guarantee for future, but just assume previous performance

 

650 under would be Point Cook, Werribee etc. Do you recommend these areas? Also can i get some tips on how to increase my portfolio to 10 properties. Sounds so cool and impressive.

 

$6.5m portfolio is your aim ?
All positive yield

 

PM not one for open forum for the areas.

You can increase your portfolio over time...but it does take effort. But it also takes a mortgage broker who will work with you. I had to change a couple of times to get the right one...I made money mostly in H&L packages...despite a lot of BAs telling me there is no money...some are now worth 300k more.

 

I'm trying to get you to expand your thinking. You sound a little wet behind the ears.

Time! Property is a long game.

 

Nah....you can be a millionaire. In 2 years.. that is what some are telling me. Apparently...I did it all wrong...it took too long.. .despite the people telling me still expanding effort for income...

 

Apparently I did it all wrong too, despite the fact that neither of us needs to turn up for a boss anymore & the naysayers are usually wage slaves.

 

Yep that's it... Setup a mortgage business or become a BA and Youse have made it....then post rubbish on Facebook to attract the great unwashed.

 

I indeed am - and all the more confused by some investment strategists telling me I can build a portfolio of 10 properties in 10 years somehow.

With my current borrowing capacity that looks very unreal, the banks just won't lend. I'm happy to have a buy and hold strategy but I think to increase my portfolio I do need some positive cashflow properties (if that's still a thing these days).

So, to summarise again, I'm looking for good capital growth (whatever the figure may be, the goal being that in about 10-15 years the price doubles), and something with at least 3% net yield. Also something which has good lifestyle drivers, low vacancy rates and good tenants.

 

How have your 4 ips performed and what were your yield / cg expectations from them?

 

When you're finished with your crystal ball couldya lend it to me for an hour. thanks.