I have properties in SE Qld (where I live), NSW, Victoria and SA, however I have one prefered area which I believe leaves the others in it’s wake. Before I go on I should point out that I am totally independent, I don’t work for any particular builder. My sole aim is to get the best possible deal for my clients in terms of yield and future growth potential. I call this “enlightened self interest”. If you are really happy with your investment you are likely to come back to me for your second and subsequent properies.
As I always say to my clients, “If you can find a better area, please let me know because that’s where I’ll go”.
My research and experience have led me to refer to what I call the GOLDEN TRIANGLE. This area is Sydney centred, and includes the coastal region from Newcastle to Woolongong and even further south to Nowra and out to Canberra.
Here is why I call it the Golden Triangle
- High Yield: In NSW, the ability to build seconday dwellings and rent them, has been a game changer. Gross yields of over 7% are now routine, and the yields near Canberra are now over 9%! Compare this to SE Qld, a former hotspot, where the yields are around 4% with a high vacancy rate.
- Positive Cash Flow: The high yield listed above means that all my preferred area stock is cash flow positive.
- Close to Sydney: The coastal towns in the Golden Triangle are a maximum 2 hours from Sydney. The Central Coast is just over an hour's freeway commute to Sydney
- Close to Beaches : Many towns are right on the beach or only 15 minutes from a patrolled surf beach.
- Huge Rental Demand : The Golden Triangle has an extremely low vacancy rate, currently around 0.5%. Most new properties are let before hand over, whereas in SE Qld they can sit vacant for months. Driving around the GT it is rare to see a “For Rent” sign.
- Future Growth : No one can predict the future. Property marketers routinely proclaim that property values double every 10 years. This used to be the case but property values have gone no where in the last four or five years. In the market negative gearing will almost certainly cause you to lose money.
- Self Funding : My investment strategy does not RELY on capital growth to make it work. My recommended properties pay themselves off in 13-15 years. Any capital gain is a bonus.
- No Stamp Duty : All NSW has no stamp duty for new investment properties.
- Low Property Management Fees: In selected towns in the Golden Triangle, we have negotiated lower property management fees than the usual 8.8%.
- Dual Occupancy Properties : In NSW, dual occupancy properties are available and are very strongly positive cash flow.
