thejodfather

Having just taken up a job on the Central Coast North of Sydney we have initally rented a lovely 3bed beach house with all the trimmings for $1200 per month which, is nothing compared to our previous bills in the UK.

However, the mortgage on our oz rental propety would be something like $6000 per month min. My question is, with such a difference in rent-mortgage unlike the UK, why would I want to buy a small place in Oz and suffer mortgage payments.

Would I not be better off investing the difference (if I could!!)

Captial gain on a house is unlikely to exceed the money you could potentially stash away each month...

Am I going mad?
The JF

ABCDiamond

If you can get a great house for a low rent, then yes stick with it. There are some good bargains about, especially in the higher value bracket.

If I was you, I would then buy a cheaper investment property "in a growing area" for rental, and capital gain. Don't mention your place to my tenants, i'm getting almost that for a small 3 bed place worth $300k !

A $6,000pm mortgage would make that place about $900k ?