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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.

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Episode 76: SPI portfolio update: what's next for the team?
Episode 75: How travelling cross-country helped this investor buy 9 properties in 6 years
Episode 74: How this investor plans to double his portfolio within 10 years
Episode 73: Bad builders: how this investor bounced back
Episode 72: Policy changes to interest-only loans: what buyers need to know
Episode 71: How this 'stubborn' investor recognised a property lemon
Episode 70: How this investor complements each property and balances his portfolio
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
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