Like Grant I also work on the $/k rule for rent. ie I expect $200/wk rent on a $200k property as a minimum.
The two properties in the Ipswich area that I mentioned before were bought for their excellent rental return (close to 1.5/k). We bought these very well. Interestingly, we had one of them revalued just this week and it has put on around 40% in four years. Rental return has not increased on pace (of course) and therefore now sits at a little over 1/k on the current value.
At the other end of the scale a Sydney inner City Unit (not a Meriton type) purchased almost two years on about 1.1/k is probably maintaining that figure - we havn't revalued.
For us, the key is to hunt out the good value (which is different for different people) and most of all don't overgear. We maintain less than 50% gearing on RE - this menas that if we should ever sell it would be our decision, not the banks'.
One other thing, try to get good, long term, family tenants - even if it means a slightly lower rent.
