Hi somersofters. I'm looking at an investment property around the mid 300k range & weighing up 2 completely different options. Please help steer me in the right direction, I'm a Melbournian & looking outer state to buy & hold for equity gains so I can re-purchase again in the future, I'd look to Melbourne but the yields are terrible!
One is Perth but within reach to the city for property on bigger land 700sq+ & ideally long term (3-5 years) development potential with yields around the 6% therefore taking care of itself. Looking at areas surrounding Armadale & Rockingham but wondering if the high yield is relative to the risk associated with the areas. The areas do show a good history of steady growth, low av. days on market etc.
The other is as close to the Brisbane cbd as possible but id be restricted to an older unit that leaves me likely a few grand out of pocket in ongoing expenses taking into account body corp, rates etc. The thought would be a unit that needs cosmetic work to add value & increase rental.
I also need to take into account serviceability going forward due to my salary so cash flow is important but everyone keep pushing Brisbane as undervalued & set for the next big market increase so I'm very interested to know if the majority of investors believe the potential for capital gain outweighs the out of pocket holding expenses.
Thanks everyone!
One is Perth but within reach to the city for property on bigger land 700sq+ & ideally long term (3-5 years) development potential with yields around the 6% therefore taking care of itself. Looking at areas surrounding Armadale & Rockingham but wondering if the high yield is relative to the risk associated with the areas. The areas do show a good history of steady growth, low av. days on market etc.
The other is as close to the Brisbane cbd as possible but id be restricted to an older unit that leaves me likely a few grand out of pocket in ongoing expenses taking into account body corp, rates etc. The thought would be a unit that needs cosmetic work to add value & increase rental.
I also need to take into account serviceability going forward due to my salary so cash flow is important but everyone keep pushing Brisbane as undervalued & set for the next big market increase so I'm very interested to know if the majority of investors believe the potential for capital gain outweighs the out of pocket holding expenses.
Thanks everyone!