G'day Paddy,
Well, as long as you don't mind a positive geared investment, you're probably OK. I must admit that, although I've LIVED in the area for many years, I've never overly invested there (had one in Woodridge
and another in Crestmead - both a few years back - but never really looked in my own back yard).
As others say, Kingston is really TWO parts - one is good, while the other is not quite so. Still, after having a quick look on "re.com.au" I was amazed to see the kind of rents on offer - and yours is in the middle, so no probs there.
I also am a believer in Jan Somers - and her comments go along the lines of "buy something that ANYONE can afford to rent" - so buying in these areas can work. The flip side is to buy where only 20% can afford to rent - and there, you can be waiting on a tenant for weeks (while you continue to cover the mortgage). So, I believe, when starting out, buying in these "lower" areas can make a lot of sense.
Re Kingston itself, I've lived there for ~25 years, and I'm still there. So it really is not that bad. Over that time, I've been amazed to watch the value scream from $45k to $95k (between 1984 and 1990). But then, it dropped to ~$75k ..... and took a LONG time to crank back up again. Virtually all of the '90's saw little to no growth. But then, in 2002, the place was on fire, and values screamed up to around $170k by 2004. Ah well, that's it (said me) - but, I was wrong again, as values got a new breath in 2006, and today my place is ~$270k. And rents? Well, tonight I checked re.com.au and was gobsmacked - so maybe your agent got it right !!! ~$300 a week now seems to be "the norm" !!
There is something to be said for "buying where ALL can afford to rent" - it gives a LOT of choice of tenants. As others have said, though, it's also one of the areas where those less desirable can afford to rent too.... So do look to using the tools at hand (Landlord Insurance, TICA, etc.)
I don't see Kingston developing into a "no go zone" any time soon (not in my area) - but, yeah, there are always those that don't quite fit the mould.
Good for you for getting in. I hope you achieve that kind of rental return - sounds good to me,
Regards,