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We live in Sydney and have a house in Ainslie and a unit in Lyons. They have been good but it has been hard to go wrong in the last few years.
My brother-in-law has a house that almost trippled in value in a few years and has been cash flow positive from from the start.
I think those days are over. Returns are not very good anymore as prices have rised but rents are the same. I wouldn’t expect anything to great in the next few years.
I am tempted to sell our house in Ainslie but my wife wants to hold forever!
As always, ACT will be good in the long run but the returns just aren’t there anymore, as far as I know.
We just did last years tax and there are still property taxes in the ACT, I expected the rent to cover all outgoings but it was not the case.
Matt
Hutch
I am no expert but have recently purchased a commercial property in a NSW town with a population of around 5000. Its a petrol station. There is one other petrol station in town, not so well located.
Price was $350,000, rent is $30,000 pa. We pay rates and land tax. Tenant has been there for 15 years and has a long lease. Its a little shabby but not too bad.
Finance is more expensive than residential and we needed 50% equity. Luckily I went in with my father who paid cash for his half, otherwise it would not have been possible.
So far, no regrets but I look at this as a long term, slow gainer. I don’t expect any fast profits.
I hope this one comparable (sort of) sale helps.
Matt from Sydney.
P.S. I would be interested to hear if anybody else has a petrol station?
