Property gearing and the current market

Discussion in 'Property Market Economics' started by kirsty2711, 14th Nov, 2017.

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  1. kirsty2711

    kirsty2711 Member

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    26th Sep, 2017
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    Location:
    Melbourne
    Hi, I'm new to all of this so can someone tell me why you cannot buy positively geared properties in Melbourne and how long will this last. Where do people recommend buying when you can't afford a negatively geared property? Thanks!
     
  2. Silverson

    Silverson Well-Known Member

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    11th Jun, 2016
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    Location:
    Melbourne
    No one can tell how long this will last, either rents need to increase and prices stay flat or rents stay flat and prices drop.
    You can possibly get into dual occs/development of some sought to possibly increase yields etc or simply save a bigger deposit/borrow less, fill offsets to reduce interest etc.
    Recommendations on where to buy at the moment I think would be the same old mantra of close to transport/school zones and inner city 10k and less from cbd.

    Not advice just my opinion, a lot depends on how long you are planning to hold for also.
     
  3. Sackie

    Sackie Well-Known Member Premium Member

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    Location:
    Bondi Beach
    Generally speaking, when markets have had a significant growth period, rents take time to catch up and open many markets will be a NCF situation for a few years at least, depending on what you bought and your deposit. Where to buy in terms of positive CF?, its not really my thing so maybe @ellejay has some advice.
     
  4. ellejay

    ellejay Well-Known Member

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    Location:
    Kimberley and NZ
    Rent returns in Melbourne are too low. I can't help with where to buy, I don't buy for cf in Aus but there are lots of threads with suggestions. Larger regionals like Albury, NSW would be worth a look, have a look at the Adelaide/SA threads and maybe Login thread. Have a general search for the threads on cf+ property and reach out to investors who have been getting good + cashflow.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Location:
    Melbourne
    You can - for example
    13/116 Princes Highway Dandenong Vic 3175 - Apartment for Sale #126618726 - realestate.com.au
    (NOT a recommendation - just an illustrative example)

    *Usually* in melbourne, the better cash flow properties will be apartments or units, in "unloved" parts of the city (of course it can mean the tenants may be a bit unlovable too sometimes).

    It is possible that in the coming year(s) you will find positive cash flow properties in the CBD apartment sector (if this so-called crash ever gets around to happening!).

    The other ways: commercial properties (usually through an REIT), AirBnB etc.

    Hopefully get to talk to you after I get back from my travels.

    The Y-man
     
    Last edited: 15th Nov, 2017

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