1 ANSWERS

1. Guest732
   

    Generally, it is better to buy more property at the cheaper price, but this depends entirely on the area in which you are buying. A $200,000 property in the inner city may be the bottom quarter of the market in that area, whereas a $200,000 property in a provincial town would probably be a mansion. In the former case, a $200,000 property would be OK but not so in the letter for a number of reasons. Firstly, a property in the lower end of the market has a higher rental yield, which results in a better cash flow. Secondly, the lower rent should attract more tenants. Thirdly, if you wish to sell on your retirement, there's more flexibility in selling one small property rather than one large one. And finally, if you're selling, property in the lower quarter of the market should attract other investors as well as first-home buyers, so there should be more potential purchasers.

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