Many real estate investors have the idea that unless you go for the mid or upper range of the market, you won’t actually see much positive cash flow in return for your investment, but today’s real estate market has seen bargains in capital growth. are plummeting and forecasts for the future are weak. This has made the idea of ​​rental property returns suddenly seem very exciting and indeed we may already see people vying for positions in this area while the returns are so good.

Potentially, the returns on this type of cash flow positive real estate investment are strong, but there are two other great reasons to celebrate; They are not only affordable for both novice and experienced investors, but also provide the security of what can be considered a volatile method of financial investment that is hitting not only Australia, but globally as well.

So what kind of money are we looking for when investing in the rental return market? You may be surprised to find that it is properties with a price tag of less than $300,000 that are generating the best returns.

If you do your due diligence and do your research properly, it shouldn’t take long to discover low-priced properties in a high-rent area, so it really doesn’t take a genius to figure out that that will produce the best rental income for you. compared to purchase costs and are much easier to manage and carry a much lower risk of investment loss compared to the high-end market. In current times where rental housing has high competition due to lack of availability, Lower price range homes can still earn the same amount of rental income as higher priced homes in the same area.

Now, if you went a step further and decided to set up a package deal to help a family own the home they intend to lease, you could easily exceed your original ROI goals. A family that already pays rent on the property will likely be delighted to be offered the opportunity to own their own home for an increase in monthly payments. This provides the perfect win-win situation that I talk about often; they have their house and their loan and other costs are more than covered, allowing them to invest more in the market.

The absolute key is to look for areas that have the potential for strong growth. These are areas where people want and need to live and where job prospects are high. This drives people to live in the area, but also drives up rental costs, which causes them to go up, especially in those areas where land isn’t released because current homes aren’t selling.