u/Bitter-Doctor-5885

Rent will not increase with house prices. So landlords will rush into buying in cheap prices.

Depending on the area. Rental for a normal townhouse or house rents about the same.
Maybe the house slightly more.

But Roughly goes right about the same rate, maybe $50 less a week..

But When this gap widens in property prices. Rent will not increase and keep up.

Therefore it will be only profitable for new landlords to get into apartments and townhouses.(more into townhomes)

I’m sorry, I don’t mean to sound like an asshole. But landlords use rental income as a way to neutralise their assets. They don’t want to bleed $. That’s why landlords pay huge deposits and keep refinancing back to 30 years every time. To make sure the repayments are low as possible and pay nothing out of their pocket. So the assets is self sustaining. When a house is 1-2m this will be impossible. That’s why with a townhouse/apartments you get better rates. So basically it’s a free property or even positive cash flow positive for LANDLORD when they refinance often, put a big deposit etc…. Which then can be sold at market value in 20 years. Even if it didn’t grow. You buy at 500k you sell at 500k you made 500k.

This will be the future of investing, and renting. Renting apartments and townhouses..

Standalone on big land will always be the better investment if you already own it and are a landlord. But going and getting big loans on high interest rates sounds like self destruction to me, when the yield is low. And you’re very much negatively geared

For new landlords it’s between buying units or eating 50¢ noddles orrr not buying any property

Thank you for reading

Rent will not increase with house prices. So landlords will rush into buying in cheap prices.

Depending on the area. Rental for a normal townhouse or house rents about the same.
Maybe the house slightly more.

But Roughly goes right about the same rate, maybe $50 less a week..

But When this gap widens in property prices. Rent will not increase and keep up.

Therefore it will be only profitable for new landlords to get into apartments and townhouses.(more into townhomes)

I’m sorry, I don’t mean to sound like an asshole. But landlords use rental income as a way to neutralise their assets. They don’t want to bleed $. That’s why landlords pay huge deposits and keep refinancing back to 30 years every time. To make sure the repayments are low as possible and pay nothing out of their pocket. So the assets is self sustaining. When a house is 1-2m this will be impossible. That’s why with a townhouse/apartments you get better rates. So basically it’s a free property or even positive cash flow positive for LANDLORD when they refinance often, put a big deposit etc…. Which then can be sold at market value in 20 years. Even if it didn’t grow. You buy at 500k you sell at 500k you made 500k.

This will be the future of investing, and renting. Renting apartments and townhouses..

Standalone on big land will always be the better investment if you already own it and are a landlord. But going and getting big loans on high interest rates sounds like self destruction to me, when the yield is low. And you’re very much negatively geared

For new landlords it’s between buying units or eating 50¢ noddles orrr not buying any property

Thank you for reading

I have a small unit here in Aus. I want to sell it and buy multiple houses in Sri Lanka. My question to you is will this be profitable in sense of locals paying renting. The yelid between rental income vs the property expense can someone with good knowlage about property let me know how it works. Because I can’t no longer buy anything in Australia because all has become unaffordable.

If you have upgraded from a townhouse to a standalone with good land and good space from the houses next to you. How did you do it? Where did you buy. Etc! I bought a townhouse in Melbourne that is not growing.