I have never been a property investor, but it's something I want to get into one day, hopefully not too long after we move into our new house and we settle down after all the construction hoo-haa.
I'd like some feedback on what people really think about yield vs growth, and metro vs regional. Does the average metro based investor with money to spend do whatever he can to invest in a high priced area with good growth prospects, or buy multiple low priced properties on the fringe or in the sticks and collect a good income? Conversely, should a country resident like me look beyond my own area if I can afford it? What about relatively secure investment properties such as Dept of Defence housing, or even the major builders' display homes?
What is the rule of thumb in the metro area for working out how much rent to charge? Around here (Latrobe Valley) the gross yield seems to be about 5.2% as a basic starting point, i.e. house = $250k, rent = $250 per week. Surely if I spent $700k in Blackburn I couldn't expect $700 per week? (Not that I have that much to spend!) Obviously it is better to start off small, but surely not to the point of only spending $80k on a dingy 1 bedroom flat in Moe just to collect $85 per week?
I guess what I'm asking is, it it really woth sticking my neck out and taking a larger risk just to chase growth?