IP for 800k across AU for capital gains

Hi experts

Which areas nationwide is expected to give decent rental income, but more importantly high CG growth over the next 10 years?

Current budget is 800k-1m(max).

Thanks.

 

Start by ruling out all of the areas that you don't think will increase over that period or outside of your price range.

 

Define what you mean by 'decent' rental income. I've seen people buying properties for around $1m getting $600pw rent and they are happy with this. To me, that's not decent at all. In fact it's the absolute opposite.

 

Hi

Meant the emphasis is more on capital growth over rental income. 600-700 p.w. sounds decent to me.
What do you reckon is a good rent for a 1mil property?

 

Well, I've got one in that category that is getting $850pw and it's currently undermarket and playing catchup, due to covid, however I wouldn't usually sneeze at something that can't bring in at least 5% return. There are some areas where this is almost impossible to find, and others where it's quite normal.

 

https://m.realestate.com.au/sold/property-unit-nsw-macquarie+park-136034126

Op, analyse this one. Sold 821k. Rent 350pw. 2% yield. This would be one property where rental return is way down the priority list. But you need some money to hold it and would probably be better if you have a higher income.

 

Wow! I was thinking at that price, that it would be a newish unit. But, NO! It's an older walk up in need of work. OMG!

 

location location location though. Informed bet on redevelopment gains in the future.

 

I understand that. But as an investment, it's not something I'd even look at.

 

First rule of Investing, Dont loose money, 2nd rule. Never forget first rule. 3rd Rule Prices follow earnings, 4th rule, hope is not a stratetegy. 5th rule Exit (what next) I understand a lot of redevelopment is on hold due to uncertainy, costs blow out and lack of building supplies. If you need to sell to realize gains you have CGT issues and still need to redploy capital into other investments, you have costs, and missed the oportunity to maximize compounding gains which is what builds wealth.

 

With skater’s skills, wouldnt buy this either. And the rental market is oversupplied. But say you had uni age kids. Get them in there for a few years and when travel starts again rent it out to uni students.

Some say hope, some say informed risk.

 

Hey Y-man, Thanks for the list there. we are in a similar situation like the OP with a budget of around 850K . Are there any parts of Bayswater/Boronia that you would suggest to get into or to avoid at any costs.
appreciate your insights and views.

 

Hi @Trainee

Thanks for your inputs. But, not sure how this unit will appreciate in the near future?

 

Hi @sydney19

Why not look into Central Coast. Historically, growing at 6-7% per annum.aversged over last 10 years. High rentals, you should be able to achieve what you have listed...

And you stay in state that reflects in your screen name.

Regards
Ashish