I usually invest in shares, but came to a realisation that I have to invest in a property as well to fund the retirement. Primarily to diversify, but also to amplify the growth as property allows to use other people's money. We are in our late 40ies, don't have any savings in the bank other than emergency funds as everything goes either into shares or extra home loan repayments. There's plenty of equity in our house in Epping we can access after refinancing which can be used for a deposit. I am in a high tax bracket and we don't really need extra income now, so in "cashflow vs CG" I would prefer to trade negative cashflow for higher long term CG. After discussing with a mortgage broker we know that our budget for an IP would be about 1.2m. I've been reading this forum for a while and I see many ppl are looking for properties with development potential where they can renovate an old house, extend with a granny flat, rebuild, etc. I am really not keen on doing that, just the thought of any renovation, even in our house, gives me shivers. I'd rather get something relatively new (depreciation would be a nice bonus at tax time) and low maintenance that I can rent out and almost forget about for next 10-15 years. I primarily was looking at houses to avoid dealing with strata/body corp as well as for better CG. I was researching the areas to look into and since my timeframe is 10-15 years, I was thinking about the areas around the new airport. Oran Park is looking as an attractive option: plenty of new properties, recent sales show new-ish houses go for $800-900k with rent of about $650 per week. A new station a few stops from the airport is planned for 2026 (?, I think) so the area should grow when the airport is completed. What am I missing? Why is it not a good idea to invest in this area?
We all have different goals and views on how to get there, but the highlighted area above would be a deal-breaker for me.
Thanks for the reply. Would you be able to elaborate on that? $650 per week makes such a house about cashflow neutral. Why would it be a blocker for you?
We are currently in a low interest environment. This will not last forever. I'd rather take my money somewhere else & get a better yield. Add to this, that new housing estates are rather bland. Big houses in small blocks. There's a big yuck factor there for me.
