Low priced properties are affordable for most people.
Benefits of low priced properties
Properties priced around the suburb’s median price have stable performance. They can handle economic down turn better.
Lower priced properties are in most locations. Investors can have a better spread of suburbs to buy into.
Greater diversification should reduce the risk of not having sufficient tenants.
Downside of low priced properties
There is more competition to purchase these properties. Investors can take a lot longer to find and purchase such properties.
Lack of nearby public transport, shops, schools etc. will make them less appealing to prospective tenants who may have families with small children and may want convenience.
Rental income is lower for these properties. This could attract a lower quality tenant.