Population growth is definately there.
I recently purchased 10 acres on the outskirts of a NW town for 350k, to be subdivided into 40 blocks at 60k a block. Development will cost 800k.
Positive cashflow aint the be all and end all.
Thanks Steve for advice
Its a great little property that is very low maintenance.
However, Im doing a land subdivision, and Im 100k short, thats why I need to sell. The land subdivision could potentially be a 700k – 1 mill profit. So its definately a case of multiplication by division on this one!!! And I need to be cashed up!!!
Alternatively, I…[Read more]
Steve, you said you’d be crazy to sell the gold and keep the mould.
Whats your definition of mould, as Im in a dilemma at the moment?
Would you consider selling a property (block of flats)that has yielded 12.5% on purchase price and will yield 9.5% on refinance, that is in a town with little potential of population growth as mold? Population of…[Read more]
Are you guys getting people with at least 6-7 grand hurt money excluding the FHBG?
When I see numerous adds in the paper (in melb and geelong) that say NO DEPOSIT, that were I believe there will be blood in the streets if interest rates rise. (My opinion only)
I did alot of wraps in the Latrobe Valley in the good old days when houses were 35-50k each and Geelong was awash with 60k houses.
It always amazed me that some people got into strife in paying $90-$120p/w in repayments.
With people wrapping homes in these areas at double and triple these prices, I am certain there will be blood in the streets in…[Read more]
I agree with Westan on the agents honesty.
After viewing several properties with one agent, on the south island, he totally turned me off buying those run down hovels that people are flocking to buy. Yields might be 12-15%, but you would be nuts to buy em.
Yes the yields look good on paper and higher than OZ, but the expenses are higher.
(Any country is better than Oz for cashflow)
For a block of flats expect a net yield of 8-9% (after expenses) in Florida, Texas. Forget California. Neg cashflow.
You can get 20% plus yields in north east New York and properties (duplexes/triplex) as low as $20,000,…[Read more]
Net is after all expenses. The complex currently runs at 11% net/13% gross, plus GST.
The property has 44 sheds and will be expanded by 50%. It is comfortably managed by an agent. It is on the outskirts of melbourne.
If you keep an eye out, storage units come up for sale frequently. But you have to have 30-35% deposit.
The property was…[Read more]
MJK. I bought it 15 months ago as a going concern for 390k, at 50k gross rent/40k net. I am currently in the process of further developing the property and increasing it by 50%.
It is a cash cow and has alot less headaches than residential.
In the states, self storage is considered the most blue chip of all commercial investment.
If you can afford…[Read more]
I own a self storage complex and 3 blocks of flats that all have property managers.
I get phone calls from the property managers on the blocks of flats frequently. The usual tenant wear and tear mumbo jumbo.
I never here anything from the self storage manager.
Guess were my future investment funds are going?
Well I saw two blocks this morning in NSW country, one was yielding a miserable 12% and the second one potentially 15% plus!!! So I find it difficult to believe anyone who says their are no good deals anywhere.
The internet is OK as a reference point, but if you really want to find the good deals, you have to GOYA and go to the locations themselves. Nothing beats driveing your car or fly to a location. The best deals are not on the net. If you buy of the internet sight unseen, you are nothing but a pig about to be slaughtered!
Merlo,I was in Burnie two weeks ago. Is this deal being marketed by the professionals? If it is the same property, it was listed for $280,000 two weeks ago and was a laughable deal at that price.
Burnie and Tassie has been saturated with mainlanders inflate the prices. Beware!
Actually I bought a block of flats in one of the towns mentioned, Whyhalla SA, 8 x 2 bedders for $320,000, earlier in the year and due to settle shortly,which rents for about 41k a year. Nice coastal town and about 25,000 in population. Lots of very cheap houses that arent dumps and + cashflow.
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