Where is the best place at the moment to buy an investment property for around $600.000?
This is impossible to answer so instead of trying to I’ll offer the criteria some of my clients have explained to me when financing investment properties.
1. Buying for cash flow/yield - these buyers want to minimise the monthly cost of the property and are looking for a strongly rentable property usually in a cheaper area which will be cash flow positive in the short term
2. Buying for capital growth - these buyers generally have higher incomes and can afford to negatively gear the property for the long term and will buy in a better area even though the rental yields are lower.
You will probably fit somewhere in between and I would suggest that you sit with an accountant and a planner to decide how you want the property to work for you and over what time frame
Best of luck with it
I’m not exactly sure where the best place to invest is but I can recommend a group you could consider getting in touch with
Thirdi Group is a boutique property development team with a great group of young people doing some really nice projects. Newcastle for example is one area they have a couple of developments within your price bracket
Here’s a link to their website - http://thirdigroup.com.au/ and the Newcastle Project "Stella" http://thirdigroup.com.au/project/stella/
I hope this helps and happy hunting
Hi Pascal - I would suggest you dont do the research yourself. There are a swag of professionals who's who income is based on giving advice around investment property. The way I work is understanding if you have a current home loan - and if so - a Cash Flow investment strategy might the best way forward to pay down your home loan - which is not tax deductible - much sooner. Cash Flow positive properties are around the country adding $100-$150 per week - after tax - towards your home loan repayment.
All strategies depend on your goals - your age - if you have equity in your current home etc.