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I've also jumped into this bandwagon for the same reason and appreciate some sound advice. Currently I'm renting a place in Sutherland, NSW and looking at the market around here, I noticed most of the properties on sale here will give a negative yield.
I've to therefore look beyond Sydney…any ideas or thoughts on new upcoming areas in NSW? As this will be my first, lets start small say $200-250K with a yield of say 8%…any views appreciated. Thanks
To international empire, you do have points but one can also argue otherwise with other goods.
Just look at whitegoods for example or a computer or even a car. Has the price doubled in the last 10yrs or even 20 yrs ago?
Furthermore comparing what happened the past 100 years ago is what my point is all about. Will that growth be repeated the next 100 years?Ask any salesman with sales target and they'll also argue the same, one could start with a low sales target but when it reaches a certain level doubling it is a different animal altogether. Similar with any businesses, when it reaches a certain level it can't move on with the same level of growth. Point of diminshing return as it is called. That point will come I believe.
I just cannot imagine million bucks property in the medium term for the ordinary folks unless you're in Zimbabwe!
Obviously we're not interested what happens in the next 100 yrs or so but what will happen in our lifetime at least.
The argument about doubling in house prices based on historical trends may not go on forever.
Like everything else it's easier to grow from a low base, e.g. from $50K to $100K, but if its from $500K to $1,000K it is more difficult.
Imagine the next level of doubling from the current median of say $600K…we're talking about $ 1.2m, then what $ 2.4m?
Guess what level of repayments for $2.4m….does one's salary double every 7-10 years as well when one reaches the peak of one's career? Just look at average salaries and you'll know what I mean.
Yes, exceptions do happen, but they're exceptions!
