Capital Growth and Postive Cashflow?

[jennyn]

From: Jenny Nowakowski


I posted this yesterday but it hasn't shown up.

I'm a newbie and I've just bought my first IP, a 2 bedroom villa in Coffs Harbour.

In 2 years time I should have approx $80k equity.

Is this enough to buy another IP?

I'd like to buy in Sydney for approx 150-200k, hopefully in the bust cycle, but would probably have to buy in the western suburbs for so little.

Does anyone know of any areas in Sydney or anywhere else where I can buy a property for approx that much and get capital growth so the value at least doubles in 10 years and have positive or neutral cashflow?

Thanks

Jenny

 

[Jacque]

Reply: 1
From: Jacque Parker


Ah Jenny, if only we all had that missing crystal ball.....

No-one can really tell you what capital growth is going to do, let alone over the next ten years. You can, however, rely on there being boom and bust cycles, with property more or less doubling over ten years. Some years the cap growth may be incredibly high (as was the case over the last 2 yrs in Sydney)and other years it may be very low. Reading reports from companies such as Residex will help you out, as you can pick the areas and suburbs that have had good growth averages and stick with them Good luck! Cheers, Jacque