WA Investments budget need to be under $400k??

Have recently come across a comment that investment properties around the $400-$450k mark including all fees (mortgage being less then $400k) are usually positively geared and are a lot less volatile in market swings. They also have the most upside for rental growth.

Anyone care to comment? Very interesting to hear some other experiences.

I’m looking at a freestanding house in Perth through a BA and my budget was initially up to $500k purchase price but since then and because it is my first IP property a (I don’t have a PPOR yet either), I’ve decided on $450k with $475k max. After hearing the above comment, I’m now considering lower it a little more.

 

Never heard of such a thing. Seems like a ridiculous blanket statement that obviously can't be true.

The only accurate part is that gross yields tend to be higher in lower price brackets, but even then that's a fairly useless generalisation.

You should be focusing on specific strategies and individual properties rather than blanket generalisations, especially since you've got a BA actively searching for you.

Have you spoken to your BA about this?

 

Interesting…

Not yet but I definitely will.

 

A comment on a PK YouTube video

 

Very good listener! What are your thoughts on that? I think maybe some truth to it. I’m signed up to various newsletters and property investment podcasts and have heard other investors targeting those price points, some even lower around $300-$350k.

 

I read that page for fun. Some of the "advice" from randoms is interesting. Most are obsessed with a rental being cashflow postive paying everything including principle repayments from day one.
Captial gains are important.
Understand the implications of interest only loans and your ability to service the loan in the future.

To be fair his comments often correct poor advice given. Many on that page won't pay for a buyers agent or put the time in to learn enough not to need one.

$500k is a good price point in Perth a little more than many first time buyers have to spend.