We've just bought in Rocky
We are due to settle any day on a duplex. I've been keeping an eye on Rocky all year, and it still seems hot to me - particularly the duplex and unit market. We got a duplex with 8.5 % rental return, which isn't as good as we would have gotten earlier in the year, but still pretty good. So, I guess thats an indication of the price rises there. It's getting harder and harder to get anything with that level of return.
I think for Rocky, capital growth is the icing on the cake. The real benefit of buying there is the rental return and the low vacancy rates. It allows you to pay off the mortgage much more than a high capital growth property in Sydney.
but i also think as more and more people (particularly southern investors) are looking for better rental returns they'll go to places like Rocky to get out of the negatively geared market, and that will keep pushing prices up there for a while yet.
Brains, has you friend actually had his properties revalued. It may be that he's not so aware of the price rises, since he doesnt really care about whats happening so much. And I think you're right - there's no reason to be that worried getting such a good rental return. Which is exactly the reason we have bought there. Although I wish I could have bought in February, to get those 10%+ returns!
Penny
We are due to settle any day on a duplex. I've been keeping an eye on Rocky all year, and it still seems hot to me - particularly the duplex and unit market. We got a duplex with 8.5 % rental return, which isn't as good as we would have gotten earlier in the year, but still pretty good. So, I guess thats an indication of the price rises there. It's getting harder and harder to get anything with that level of return.
I think for Rocky, capital growth is the icing on the cake. The real benefit of buying there is the rental return and the low vacancy rates. It allows you to pay off the mortgage much more than a high capital growth property in Sydney.
but i also think as more and more people (particularly southern investors) are looking for better rental returns they'll go to places like Rocky to get out of the negatively geared market, and that will keep pushing prices up there for a while yet.
Brains, has you friend actually had his properties revalued. It may be that he's not so aware of the price rises, since he doesnt really care about whats happening so much. And I think you're right - there's no reason to be that worried getting such a good rental return. Which is exactly the reason we have bought there. Although I wish I could have bought in February, to get those 10%+ returns!
Penny