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Where to buy when capital cities are too expensive

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

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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 95: The top 10 things every investor should check before buying a property
Episode 94: BONUS EPISODE: From 1 to 28 properties – what's his secret?
Episode 93: 28 properties and an $11.5 million portfolio – how this investor did it
Episode 92: BONUS EPISODE: Investor reveals top tips for better property management
Episode 91: Why being 'pedantic' about property will enable this investor to be debt-free by 45
Episode 90: Portfolio update: SPI gives the inside scoop on its latest property purchase
Episode 89: Renovating as a couple: two young investors share their story
Episode 88: Everything you want to know about the short-term rental market revealed
Episode 87: BONUS EPISODE: Former Olympian shares his property development know-how
Episode 86: How a former Olympian found new sport in property development: Ed Fernon's success story
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Where to buy when capital cities are too expensive
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