Regional WA vs QLD vs NSW vs VIC

Hi all,

I am complete newbie to property investment, still trying to grasp nitty gritty. With so much of information and news floating around, i am highly confused where should i start.

My primary objective is to have high rental yield cash flow property (under 250k).

Can experts here please guide me on which regional should i start targeting out of the states mentioned.

Thanks and hope to learn a lot here.

 

Hi @BG81

Please see WA outskirts, SA, outskirts, VIC Regionals.

Regards

 

For regionals, I would choose NSW.

 

If you're a complete newbie, I would recommend just scrapping this plan and spending the next 6 months reading this forum daily, and also looking at property. Listings, home opens, all of it.

There's no better way to learn up imo.

 

Agreed. Read this forum like you are reading the Harry Potter series. There are more magics coming out of it than the Harry Potter stories. I can concur...

 

Thanks for response mate. I have already started this since 1 month. I actually shortlisted few suburbs for QLD, but then again since i would be doing IP first time, so doing double/triple checks.

Areas i shortlisted in QLD - Logan (Beenleigh, Loganholme, Springwood)
Areas i shortlisted in WA - Maylands, Joondana

So now here for experts opinion.

 

We do Dual Occs in Goulburn and Dubbo and Orange , which are all NSW regionals - rents in all locations are gangbusters

 

Not sure if I’m misunderstood what you’re chasing - these are not regional areas?

 

Neither are Maylands and Joondana

 

Armidale NSW.

University, two big solar farms about to commence construction 800 jobs in construction next two years, government spending here, nsw government department about to relocate 100 FTE jobs from Sydney to Armidale.

www.investarmidale.com.au

 

Thanks mate, i agree with urs and spoon.

That's why i said i am still learning.
Now i feel my ideal location would be having a yield good enough to cover all most costs on property without me putting a dollar. Since i m just hitting 40 and see atleast 10-15 years of working, i think i should focus more on capital appreciation but don't want to go into negative gearing unnecessarily.

I am doing my research currently on QLD and WA.
Should i stay coastal.
Experts opinion ??

 

Really set to take off. Land prices are so cheap at the moment .... Vacancy rates are low. Lots of investment in the pipeline. We like it so much we are about to put some Dual Occ packages together in Armidale. Just like Orange and Bathurst have been in recent years, and just as Goulburn and Dubbo are right now, these are exactly the sorts of locations which accommodate affordable, reliable cash cows that investors can hold several of without threatening their land tax thresholds, all while aggressively paying down debt.

 

Very exciting developments for the area for sure. Isn’t there an oversupply of land though at the moment? Are the new developments expected to bring that many people into the area?

 

Logan has good rental yields but excesive supply. Supply is an enemy of capital growth.

 

Hi Mare, can you explain further as to how it doesn't threaten your land tax thresholds?

 

No love for Toowoomba?
We recently chose that over regional VIC, much better yield at our pricepoint.

 

The land tax threshold for NSW in 2022 is 822K . When our clients are purchasing 3 or 4 Dual Occs where land is 200k or less , the thresholds aren't threatened…. Unless they have other NSW land holdings of course. Our product produces between 16-18K NET per annnum when fully geared ( 100% of the purchase price plus stamps and legals) so provided they hold no other land in NSW, 3 Dual Occ's producing 16-18K Net each would provide them with between 48-54K of extra NET income which they can use to pay down an Owner Occ mortgage very rapidly and without having to hand any money over to Revenue NSW. 4 Dual Occ's would provide them with between 64-72K of NET income, making the repayment timeline for the owner occupied mortgage even faster. The idea is to pay down the O/Occ debt as rapidly as possible, then convert all INV debt to P&I and pay it down, with the cash flow from the Dual Occ's and the money that used to be used for the O/Occ mortgage. Effective. Powerful. Life Changing.

 

Ah I see, thanks for the info!

With this method/ strategy. It seems that you would need a fair bit of cash to begin with, especially if purchasing 3-4 dual occs, Assuming they are all me H&L packages

 

you’d need deposit and stamps . That might be cash or it might be borrowed from equity . Packages today sit high 600ish , so significantly less money required than for most metro stock in east coast markets. Yes , house and land . You buy the land - we build .

3 of these would cost you about the same as 1 new , half decent 4 bedroom house and land on 450m2 ( if you’re lucky) in the sticks in Sydney … but 3 of these would get you 48-54k net CF , versus negative cash flow and land tax in Sydney for about the same level of debt .

2 of these would cost you about the same as a new townhouse or old house in western Sydney , and again you’d be well ahead on cash flow and land tax.

if you want a portfolio that will pay an owner occupier mortgage off much faster and then pay themselves off so that you are left debt free with 6 figures of income , and without ever needing to sell ( you may CHOOSE to , but you won’t ever NEED to ) this is a clear pathway to that goal .