You wouldnt? I can get a property for 250k with a rental of 280-300 p/w. Its in the corridor between brisbane and gold coast and is next to some really good areas on the other side of the railway. Rental vacancies are below 1%, 64% are renters, the only hiccup I can see is the low socio economic aspects.
True, yet $300 a week is not peanuts. I would be concerned with low $200's. Besides I wont settle for a low quality home, Im selecting a mid-range one which I am hoping I can negotiate at a sizable discount.
im looking at the same right now, i have my ppor in a nice street in woodridge (yes... they do exsist) my opinion as a local is the whole area is a goldmine waiting for what one described as his zit theory
I got a property in Woodridge, which I think is nearby. It was cheap, and the return is good. I have been through 3 tenants in just over 2 years, made 2 insurance claims when they skipped town.
Property has increased in value from a $120k pp to $160k val 18 months ago, I suspect its a bit more now. When purchased it rented for $145, am now getting $220.
It was my first sight unseen purhcase, Im glad I did it, but, when I went to visit, I have never seen so many pawn brokers in the main st, along with chemists, police stations court houses and centre link offices!
Its 5 minutes from the train station, and a 5 minute drive from the freeway to either gold coast or Brisbane.....
My only regret is not having a better PM when the tenants skipped.
I have got a property just outside logan central in Slacks Creek.
After a number of times the tenant not paying rent, and always paying late, have taken the advice of my real estate agent, and have gone through the process of evicting tenant and through the small claims Tribunal.
Nightmare after Nightmare......tune into other post on 'Evicting Tenants' to hear more about it.......
Anyway....it is true, lower socio economic area may contribute to more problem tenants.....but my property manager gave me some enlightenment and said my current tenants are the worst on his rent roll (I don't know how I see that as enlightenment, but it does suggest I got a bad apple). It was all good the tenant paying $500 / week on a signed contract, but it is only good if he pays the rent!!!!, The agent only has small problems with less than 3% of his rent roll......which is promising.
It is unfortunate that even after doing all due diligance on prospective tenants, some scum still get through the cracks.