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From: SJ Softie
As pointed out by GoAnna the Melbourne property market is booming. I am a novice and am currently trying to buy my first IP in Melbourne but the areas I am researching the price of property is increasing faster than rental return. Therefore, the rental yield is 4-5%. Is it unwise to purchase a property that is not self sustaining under the guise of capital growth, hence, gambling on whether the current market growth will continue? Or is it wiser to look in other areas where the sums are safer and aim for positive gearing and potentially less capital growth?
Interested in your thoughts of what should be my priorities when assessing what is a good IP. (I am in the financial position where I am able to contribute to the loan even though I would prefer not to).
Thanks,
SJ
As pointed out by GoAnna the Melbourne property market is booming. I am a novice and am currently trying to buy my first IP in Melbourne but the areas I am researching the price of property is increasing faster than rental return. Therefore, the rental yield is 4-5%. Is it unwise to purchase a property that is not self sustaining under the guise of capital growth, hence, gambling on whether the current market growth will continue? Or is it wiser to look in other areas where the sums are safer and aim for positive gearing and potentially less capital growth?
Interested in your thoughts of what should be my priorities when assessing what is a good IP. (I am in the financial position where I am able to contribute to the loan even though I would prefer not to).
Thanks,
SJ
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