The property was bought overpriced. The property wont go up in price for a few years The rent wont increase The owner doesnt have it negative geared for a reason
You can always NOT invest based on assumptions.
Based on YOUR aussmptions then yes it would be a bad investment.
But again, assumptions are just that.
Assuming the poroperty wont go up in value more than 1.8% p.a would go against history.
Do you know Ballarat local council have planned for this house to be rezoned to allow up to 5 houses on the ttile? a new university for the area, a new school, a new library, defence force housing of over 3000 to be built, new trainline which will be a bullet train to Melbourne, 3 new mines creating 5000 new jobs for 20 years, etc etc.
No you dont, because its not true, but what if it was?
Would that change your assumptions.
Figures on paper only take in part of the equation.
