Hello,
I've been doing some research and I'm having trouble finding properties in NSW under/around 200k that are cashflow positive or at least neutral with reasonable CG prospects. The best I've been able to find are properties where the rent would be about $20-30 short of paying the P&I repayments. I will use an IO loan and put the equivalent of the extra to pay the principal in offset. I would like to stick to positive and neutrally geared properties to maximise our borrowing capacity at this early stage in our investment journey.
Some areas like Broken Hill etc seem to be quite positively geared but I'm not sure how much of a long-term smart decision it would be to invest in an area like that.
I've also found that some apartments in Mt Druitt just scrape in as neutrally geared and even though the vacancy rate here is quite good, there seems to be a lot of units/apartments available and I'm not sure that there would be a lot of CG, especially when buying now.
Orange, Dubbo and Wagga Wagga also look attractive but most seem slightly negatively geared. I'm not sure how much of an impact this would have on our ability to purchase additional properties.
What are your thoughts on this? Any suggestions?
Thanks
I've been doing some research and I'm having trouble finding properties in NSW under/around 200k that are cashflow positive or at least neutral with reasonable CG prospects. The best I've been able to find are properties where the rent would be about $20-30 short of paying the P&I repayments. I will use an IO loan and put the equivalent of the extra to pay the principal in offset. I would like to stick to positive and neutrally geared properties to maximise our borrowing capacity at this early stage in our investment journey.
Some areas like Broken Hill etc seem to be quite positively geared but I'm not sure how much of a long-term smart decision it would be to invest in an area like that.
I've also found that some apartments in Mt Druitt just scrape in as neutrally geared and even though the vacancy rate here is quite good, there seems to be a lot of units/apartments available and I'm not sure that there would be a lot of CG, especially when buying now.
Orange, Dubbo and Wagga Wagga also look attractive but most seem slightly negatively geared. I'm not sure how much of an impact this would have on our ability to purchase additional properties.
What are your thoughts on this? Any suggestions?
Thanks