Hi guys, I have done some number crunching and surprisingly Sydney is still working out to be profitable (in my books). I just want to bounce some ideas around and see what you think. I know there are many variables at play here and short/medium/long term consequences based on portfolio serviceability/land tax etc Liverpool 3 bedroom unit. I've seen a 3/2/2 unit on Bigge St Liverpool. Less than 5 years old. Sale price $519,000. Rent for similar properties $450-480. Yield is 4.5% on a conservative estimate. Including management fees, interest rates, landlord insurance, bills etc, it works out to be $1500-2000 negative geared. Here's the catch though, capital depreciation is approximately $10,000. Based on my income I can get back at least $3700. I can service it without a problem and each year I'll end up at least $1700 ahead. Given Sydney may grow a bit more over the next year then flatline, it seems to be a reasonable investment. Mind you I think half a mil can do a lot more elsewhere. Thoughts?