From reading about other investors buying a CF+ properties, most of the time I see they're located in pretty crap locations, ie: population numbers are low, they're located out in woop woop, or in some undesirable suburb that you wouldn't get your dog to live these...basically, the way I see it, is that...
D - C-class Location
1) Nobody wants to buy here so prices are much lower
2) Tenants have got to live somewhere so "like" attracts "like" and undesirable tenants live in undesirable areas
3) Because of the low buy-in price and a median weekly rent, the return is much higher
B - A-class Location
1) Most people want to buy here so prices are usually much higher
2) Negative gearing exists mostly in most B - A-grade locations, because the weekly rents are simply not in line with the purchase prices
Yes, I know there are exceptions, where an investor bought a bargain IP at bottom price in a A-grade location or the investor put in 30% deposit or equity and now the IP is CF+, but most of the time when I'm reading or hearing about these investors, most of these properties seem to be located in undesirable locations.
D - C-class Location
1) Nobody wants to buy here so prices are much lower
2) Tenants have got to live somewhere so "like" attracts "like" and undesirable tenants live in undesirable areas
3) Because of the low buy-in price and a median weekly rent, the return is much higher
B - A-class Location
1) Most people want to buy here so prices are usually much higher
2) Negative gearing exists mostly in most B - A-grade locations, because the weekly rents are simply not in line with the purchase prices
Yes, I know there are exceptions, where an investor bought a bargain IP at bottom price in a A-grade location or the investor put in 30% deposit or equity and now the IP is CF+, but most of the time when I'm reading or hearing about these investors, most of these properties seem to be located in undesirable locations.