I’m looking at buying my first investment property with my son. I want a positively geared property but still with capital growth. What are thoughts on regional towns or should we stick closer to capital cities?
The extent to which any property is positively or negatively geared is predominantly determined by the cost of money. Plenty of fixed rate options between 2%-2.5%. That said, however, you may still struggle to positively gear in the capital cities...unless you build a granny flat in the backyard and/or divide the house in two. SQM provides rental yields (in percentage terms) for all postcodes in Australia. So if you're primarily chasing yield...perhaps start there.
Your thread is titled Rockhampton so I assume that’s where your looking. I picked up one in this area a few months ago and due to the rental prices and low vacancy it’s slightly cash flow positive but I expect that capital gains will be limited if any unless the area goes into boom
I looked at Rockhampton for a while but was just too far away for me to be able to spend enough time on the ground. House prices and yields looked very attractive for city of it's size. At a similar price point and yield in NSW your in much smaller regional towns.
My property manager who manages my Rockhampton rental has recommended increasing my rent by $40 a week as tenant recently moved out. Rental market is definitely tightening up in the town.
I heard that it's bit challenging to find good PMs (also good tenants) in there. Could you please share the details if you have found a good PM? Thank you.
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