I have spent a great deal of time looking at property’s in the last 6 months.
I know where I can purchase property that will give me a higher rental return per month that exceeds the loan repayment.
The only problem is that it is not in a good area and I would not think that there will be good capital growth over time.
Other concern’s are the type of tennants it would attract and possible damage incured to the property.
Would this still be a good investment, based on the rental return or would it be a waste of time?To some extent that depends on you and your circumstances. That’s fine for some people.
For me I want min hassle being interstate and new to the game etc… So I go for -ve cashflow high CG property in “good” areas, for piece of mind. I dont mind being out of pocket a bit. I see it as a kind of insurance payment to secure my ideal investment property, that I expect to pay dividends a few years down the track, once higher rents kick in.
At present minimum hassle, time and convenience is more valuable to me, than saving a few dollars, though I still try to get the best return possible given the circumstances. I figure I can hold at least 3 quality IPs on -ve chashflow, before I need to rethink the strategy on the next one.
good luck.
To some extent that depends on you and your circumstances. That’s fine for some people.For me I want min hassle being interstate and new to the game etc… So I go for -ve cashflow high CG property in “good” areas, for piece of mind. I dont mind being out of pocket a bit. I see it as a kind of insurance payment to secure my ideal investment property, that I expect to pay dividends a few years down the track, once higher rents kick in.
At present minimum hassle, time and convenience is more valuable to me, than saving a few dollars, though I still try to get the best return possible given the circumstances. I figure I can hold at least 3 quality IPs on -ve chashflow, before I need to rethink the strategy on the next one.
good luck.
Yes I guess it depends on individual circumstances and your analysis makes sense.
Thank you for your reply..
Mark…….
Hi again mpks70. Dont write off so called bad areas. 5 years ago I purchased an I/P (my first actually) in a so called not so desirable area of Sydney. It has had the same tenants from day 1, no trouble and nearly doubled in value. Maybe I’m lucky, but if you take out appropriate insurance and get a good property manager hopefully you will have few hassles. You could buy the best house in an affluent area and still get “the tenants from Hell”.
Hope this helps
Marty
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