Is it a good idea to buy a big house investment property to rent out in a posh location

Discussion in 'What to buy' started by Sigemup, 13th Apr, 2019.

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  1. Sigemup

    Sigemup Well-Known Member

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    Hi guys,

    Is it a good idea to buy a big house investment property to rent out in a posh location ? Or would it be that most of the houses in such areas are people living in their own homes and not usual for people to rent such big houses because they are well-of to own their houses
     
  2. MWI

    MWI Well-Known Member

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    Sorry but I don't understand what you are asking?
    There are many ways to invest into property, just saw at Auction channel today, a property bought at Dover Heights for $7.5M (I think) and apparently it was IP number 90 for this particular investor, having a billion $ portfolio...
    Some who can afford will but few expensive ones if that is their strategy for property investing, there is no ONE rule of investing into property for ALL.;)
     
  3. Sigemup

    Sigemup Well-Known Member

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    1. Which is the auction channel ?

    2. Yes I think you got what I was trying to say - that would anyone buy very expensive property in expensive location as investment to rent it out ? Because who would rent such a property ? Those who can rent such a property would probably rather buy it ?
     
  4. Propertunity

    Propertunity Well-Known Member

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    Usually big houses in posh locations are great for CG but poor for rental yield. There are many reasons high earners might rent rather than become owners.
     
  5. MWI

    MWI Well-Known Member

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    1. Auction channel on paid TV Foxtel 601.
    2. Some that rent such expensive property cannot afford to buy it they would need to move further out. My next door neighbour pays rent at 1.625% of purchase price, lives in a nice area with proximity to CBD with a view in a house. Some will rent expensive property it just may be less of them that can afford it.
    Not true some very small number of investors will rent out an expensive property say paying around 1.5%-2% rent yield, whereas they can invest their money into say 4-5% yield for investments. It is not common and requires discipline, but one person such as Chris Gray does it!
    If you have some time watch his view point about it:
     
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  6. Blueskies

    Blueskies Well-Known Member

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    Not the Sultan of Brunei again was it?
     
  7. MWI

    MWI Well-Known Member

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    no....someone that just split with his wife (they lived in Vaucluse) and bought that house for his ex...:(
     
  8. TMNT

    TMNT Well-Known Member

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    A friend of a friend bought a house in about chip area for 25m
    Sold it 5 yrs later for 36m


    So..........
     
  9. Trainee

    Trainee Well-Known Member

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    Like adult incontinence, it........
     

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