But what if you can’t afford to buy where you want to live? This might be the case for those of you with inner city dreams but middle ring budgets.
And so begins the rise of the rentvesting: a strategy where people rent where they want to live and buy an investment property in a more affordable area with solid growth prospects.
It’s a strategy you should discuss with an independent financial advisor before you dive in.
Domain recently shared some number crunching from LocationScore.com.au which offers some food for thought.
Where might a rentvestor might want to rent? Consider these Brisbane suburbs where rental yields are low compared to the purchase price:
- Woolloongabba – 3.37% rental yield
- Park Ridge – 3.10%
- Cannon Hill – 3.33%
- Lutwyche – 3.17%
- Morningside – 3.43%
And where might a rentvestor invest? The answer is anywhere they think has good growth potential with an affordable purchase price. You’re not limited by location if you won’t live there yourself. But if you are looking in Brisbane, Domain offered these suburbs where units boasted an affordable price tag and a decent yield:
- Rochedale South, $288,869 median price with a rental yield of 5.74%
- Arana Hills, $379,637, 5.15%
- Banksia Beach, $429,560, 5.57%
- Bray Park, $410,301, 5.13%
- Strathpine, $389,810, 4.99%