podcast

Where to buy when capital cities are too expensive

0

David Brewster, Where to buy when capital cities are too expensive

Download Video: MP4,

 

David Brewster, Buy Property Direct, Where to buy when capital cities are too expensive

Property investors who have been priced out of the capital city markets can still find good investment opportunities if they know where to look.

If you're an investor who feels priced out of the capital city markets, I wouldn't worry too much. In my opinion, capital cities can be a little bit over rated. A lot of construction going on, over flooded markets, high buy in prices, and low returns. For example, in a Melbourne market if you take a South Melbourne or Port Melbourne area where there's a lot of development; your buy in for a 70 square metre 2 bedder, 1 bath, that will run you about $600 000. Your $600 000 investment will probably get you $500 a week return and both areas would grow at about 3 1/2%. If you go further out, say a 30-50km radius, look at an area like Carrum Downs for example, your buy in for a three bedroom, double storey townhouse, 2 bathrooms, double garage - that'll be about $380 000. It'll get you about $380 a week and the growth in that area is 7 1/2%. So it's not as sexy an area but the numbers are very attractive.

Listen to other instalments of The Smart Property Investment Show:
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
Episode 50: 8 properties by 25: Former housing commission kid reveals how he changed his life and created wealth
Episode 49: How to build a sophisticated multi-property portfolio
Episode 48: ‘From just $2,000 in my pocket to 6 properties’
Episode 47: The SPI Show answers more listener questions: Special episode
Episode 46: 4 properties by 24 – how to build a portfolio without sacrificing fun, travel or food
Episode 45: Special guest Mark Bouris on what really makes property prices rise and when to invest
Episode 44: ‘11 properties by 31, now I’m stuck: What’s next?’
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%