Have been searching for a decent investment property for $90-120k with reasonable rental return. Can anyone help, as I am just starting out and have been researching a few areas in QLD, but am finding it hard! I am trying Ipswich area at the moment????[?]
Hi Sunni,
I ran a quick search on RealEstate.com.au and found these 200+ properties between $90-120k in Queensland. No doubt there’s a great deal in there somewhere.
As for Ipswich, I’ve heard from a few people that it’s getting harder and harder to find great deals up there. Prices are up, and yields are down.
But if you can’t find positive cashflow, you can always create positive cashflow. Have a look at the strategies section of PropertyInvesting.com
Cheers
Brent
Most places more than 2hrs from a capital city and not near the coast should have places that meet your price requirement.
The yields may be cashflow positive, but whether they are enough to offset likely slower cap gain is a matter for you. For me 6-7% isn’t enough.
However if they’re near the 10% mark, they’ll be enough to rapidly (10yrs) pay back your loan, and thus gain equity rapidly even if values remain flat. In this case it’s the tenants money rather than capital growth that’s fuelling your wealth.
If you borrow 80%, you might be able to quadruple your wealth (allowing 5% for purchase costs) in under 10 years. If you can do it in less time, and there is some capital growth, it could work out very well indeed, provided people still want to live in the area and pay reasonable rents.
Peter
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