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Agreed, the lower end of Sydney has done its thing for the moment. Houses that were selling in Ruse for 300k 2 years ago are now bringing 440k. Same with Mt Druitt. Houses selling there 2 years ago for 210k now bring 340k. You should invest further afield. Some regional centres are experiencing growth now, areas on the north coast and north western areas for example and some places in Brisbane.
In addition to the things already mentioned I look for ‘deterrents’- regional centres with large social housing areas- particularly ones which are being sold off like Orange and Tamworth. I personally like anywhere that you can get to by plane because the town will be a reasonable size. Anywhere with a decent size TAFE, perhaps a Uni campus, hospital and government offices is a reasonable long term bet. Tt’s also worth looking at the percentage of people who rent in those towns and cities.
Definitely agree with Corey. Recent changes to legislation mean that tenants now have many more rights than they used to. If you have a large portfolio you need significant spare time to manage it. I have several properties which are 500km away and it isn’t feasible to get in the car and inspect them regularly nor is it feasible to organise trades quickly from this distance.
Definitely buy a house with a granny flat if you can. We did that 20 years ago and it enabled us to really fast-track our mortgage repayments over 5 years. To give you an idea, we bought the property for 200k, kept it for 5 years as owner occupiers. In that time the granny flat was rented for $150 per week and was never vacant. The property also went up in value and we sold it for 375k. The income from the flat over the 5 years totalled $39,000 which was a 20% return on our outlay. Remember too that interest rates at that time were never lower than 8%……We were then able to save the deposit for a second property very quickly which was the beginning of accumulating a much bigger portfolio.
At this stage of the cycle i would certainly look at regional centres in NSW. things are beginning to move again after many years in regional NSW. Anywhere that has good infrastructure and planned infrastructure is good. There are good returns to be had in places like Inverell, Grafton etc. As stated previously you trade some capital growth for return however if you buy now, i believe that these centres will experience some growth in the next twelve months as a flow on from Sydney, Central coast, Newcastle etc.
Hi Chris,
You are NEVER too young. My advice is to look at regional country towns with a uni, schools, tafe etc and try and positively gear. Its still possible to buy 3bed houses for 120k and get 180 return per week. This way yr not taking on too much debt until u find yr feet.
I started at 21 with a mate and an agreement to sell after 2ys if either of us needed to.I was working part time, 3 jobs but i wanted it so it worked. We now own several properties. I am 35. these are debt free.Having a mentor to show me a few tricks helped a great deal.
Cheers,
Stevesteve smith
