"I know people who have bought those properties a while ago,and have made 100% on the capital growth.That was ok because they payed between 50,000 and 65,000,but your not going to get that growth ever again on those places."
You don't need that kind of rapid growth - if it happens it is a bonus.
"The trouble is if your paying 150,000 for them,and hoping to get the rent to cover it,if doesnt work out."
At that price no it doesn't but it is allot closer than inner city, and a few years of rent growth will cover it. Time is the key.
"You have also have to understand,that the people renting those places,cant afford constant rent increases.$10 to $20 dollars a week is a lot to those people."
Agreed - any future increase is in proportion to the underlying rent paid.
"I also worked for 3 years putting split systems in around that area,and UT it is as bad as everybody makes it out to be."
Well that is your perspective. I have a different one.
"They know how to play the system,and the tenancies tribunal,dont kid yourself."
Some do and some don't - many don't know the first thing about their rights. Sure you get the trouble makers, and investing in this area is not necessarily for the faint hearted especially if you intend to manage it yourself. I manage the properties myself and I take the approach if the tenant looks after me (pays their rent, looks after the property) I look after them and for the most part it works - if they don't then look out because you at least have to appear tougher than them to get rid of some of them.
