I have been a property investor for around ten years with a current portfolio of 4 IPs (Adelaide and Brisbane) and had reasonable success with capital growth.
Doing the numbers now though if a bought say a unit for 400K at a 4.5% yield its going to cost me 10K odd a year to hold (after rates, body corp, maint etc) after sinking 18K odd of purchase costs.
My crystal ball says that due to affordability and general debt levels that cap growth is going to be pretty much flat for the next few years except for some niche pockets driven by specific local drivers. The talk is that interest rates and going to go up increasing holding costs. First Home buyers have flushed through the system due to recent incentives.
So what is going to make it worthwhile investing for the forseeable future:
a) Will a new mining/energy boom push things higher (based on pressure currently building in WA)?
b) Will rents increase significantly to push returns to an acceptable level to investors?
c) Is it about searching for those magic cap growth areas?
Alternatively maybe its about staying out of the market for a while...
Interested in the wisdom of my property peers.
Cheers and Thanks...
Doing the numbers now though if a bought say a unit for 400K at a 4.5% yield its going to cost me 10K odd a year to hold (after rates, body corp, maint etc) after sinking 18K odd of purchase costs.
My crystal ball says that due to affordability and general debt levels that cap growth is going to be pretty much flat for the next few years except for some niche pockets driven by specific local drivers. The talk is that interest rates and going to go up increasing holding costs. First Home buyers have flushed through the system due to recent incentives.
So what is going to make it worthwhile investing for the forseeable future:
a) Will a new mining/energy boom push things higher (based on pressure currently building in WA)?
b) Will rents increase significantly to push returns to an acceptable level to investors?
c) Is it about searching for those magic cap growth areas?
Alternatively maybe its about staying out of the market for a while...
Interested in the wisdom of my property peers.
Cheers and Thanks...