That is supposed to be suggestions.
Relax James.
We just don't want to see you come unstuck, hence the reticence to give you advice.
Yes, it's completely possible to buy in obscure areas - mainly mining towns - and obtain massive yields. But these yields are rarely sustainable for more than a few years.
Imagine this hypothetical situation, if you will:
You spend your hard earned savings to buy a house in Mt Woop Woop, next to Blue Sky Mine's Kryptonite quarry. The bank lends you 80%. A tenant , usually a mine worker, moves in immediately.
The yield is 8%! Great! You are set! Well maybe. Here's what you need to remember:
Although the price of Kryptonite may be strong at the current time, things may change in a decade. Falling prices could result in the mine downsizing or being shut down entirely. It's happened a lot in Australia in the last 150 years.
So what happens if Kryptonite prices fall?
Result:
1. no tenants. zero yield - an empty house for several decades
2. (worst of all)
the bank calling-in its loan!
3. ALL house local house prices falling, not just yours.
Mate, if you want yield, learn local council rules and get into the granny flat business in your spare time. Although its unfashionable, it's a lot safer than buying in obscure areas. Guaranteed results, minimal risk if you are a DIY guy and can do it yourself.
Hi,
Im looking at investing the funds from a recent sale.
The property was a bad investment choice u
Take your time, that's the best advice I can give you.
Look around for exceptional value. You are better off with decent Capital Gain than dodgy Yields that may later come unstuck.
