Just my two bob.
I had three properties until late last year. Decided to cut away two that were not yeilding me enough and didn't sit right with me. Plus wanted diversification until I can find a property with a bit more potential. Looking for nice home to eventually semi retire to up Port Mac way if anyone knows of some decent yielded up that way
In saying that. I could pay my property off tomorrow but I choose to keep offset so I can beat the 5.5% loan on the Sharemarket. 5.5% rediculously easy to beat
The rent is easily covering the mortgage interest, the money I leave against it is chipping away at the principle and then some.
So it's in Perth, yep I know declining rents ect. We'll not so much in my area it, started off at $360/w 2 years ago now it's $400/w. Some places in the area are a bit lower but my tenant is happy to stay for now. Good tenant too, keeps the place neat as a pin.
So I paid $340k for it I wouldn't even bother selling it now as I think the yield on that is pretty good. I think its 6% before costs and 4.8% after costs.
I feel some markets are going to find it tough over next few years but if you spread your eggs out a bit, say property, shares and cash you will always be a winner.
