Forum Replies Created
Point to Freckle.
Hunter Valley is looking good, low buy in price, ability to add value later through reno or development. And good current cash flow. WA has bottomed and should head back up now so might be some opportunities there. hat to some locals about the changes in infill requirments, iit's looking good.
Melton still has a lot of new Housing going in, high vacancy rates, also has one of the worst literacy levels in the state…
Plenty of other options if you at looking to do cf+ with profit in a few years, gotta
do homework.
Please excuse eerrors typing on phone, no Internet ATM
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeYeah but it'll be "I tol ya so" about something not related to property
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeI'm not familiar with the 'Black Swan Event' term.. what is it?
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeGood reply Brendogs.
It's not that I'm questioning your intentions but I was hoping that you had already questioned yourself about what you want to gain from investing in property.
There are excellent cash flow deals to be had. If you don't have room in your life at this stage for either the extra work that comes with developing or the extra cash needed in renovating then cash flow is a good safe option.
You could, as you say, buy something to develop later, you could buy something that needs a bit off work, that is returning a healthy positive cash flow now, but you could add more value in a couple of years.
Don't worry about the kick in the guts that you get from following a property and having it not work out, this happens. If every property deal was profitable, and quick and super easy we'd all be minted (cheers JacM).
Keep some positivity (borrow some of Shell's she is wonderfully positive
and try not to get bogged down in what happened previously.In the back of the magazines as people have said previously are suburb stats. What you can do to start trying to find suburbs that may have cash cows is to have a look at the median sales prices and the weekly rent. start by looking at suburbs in the price bracket you want to invest. (The median price is just a guide for you so you don't look at suburbs way out of your prices range)
Then you can look at the rents. If the sales price is eg $400k and the rent is $400 p/w, it's unlikely it will be CF+. How ever if the selling price is $200k and the rents are $350 you are probably looking at something good.
Then you can begin to see if that suburb is worth pursuing. And to expand on Shahins post, Does it have infrastructure and jobs. Hospitals, schools, major chain supermarkets, fast food, what about petrol stations? Has it got discount department stores like a Target?
What about roads and rails? I personally don't look at any suburbs without rail. It can be light rail, but the rail has to be in the ground, it's easy to change a bus route, not so easy with a train.
Major HWYs, are they under construction, maybe you will get a little gain by buying while the road is being built. Are there uni's within easy commuting distance.
It sounds like a lot, and there is WAAAAYYYYY more info that you will need to gather. If JacM or someone could put up the yield calculation that would probably help you too.
Hope this helps give you a kicking off point. As for your questions as to what to buy, only you can decide what to buy after researching you options. No one on here will be able to tell you what to buy, many have tried to get that answer!
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeGood call Johann.
Financial education is lacking, desperately lacking.
It's interesting because today everyone (business people) are happy as China looks like it is not going to sharply slowdown. And the big problem is how much you can base economic decisions on a country that has no opposing voice. (I'm watching the next series Niall Fergusson has done all on China)
I did enjoy a dabble on the share market. But when the cash is gone… it's gone.
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeI think it's interesting.
Everyone's always happy at the start of a new year, it's new! I think there is good an bad with everything.
Sure interest rates go down, but that mean a recession really. Banks need to profit, so they will need to find new customers and entice existing customers to borrow more…. That's good for borrowers, but tight lending criteria means developers get $0, or interest rates of %%.
Developers not building means less new housing, no more glut. House prices go up, more demand less supply, good for anyone who holds property, bad for new buyers. Good for banks. Good for government.
I don't think anyone can predict the future. Melbourne has a big problem that the houses in sought after areas are overpriced for the hideous aging shacks they are, and everyones looking for a bargain. Then there are all the new houses in the places no one wants to live coz there is nothing for miles. You can pick up a 'Melbourne' house and land package for diddley squat but it's practically in NSW.
SO when new property (brand new or renovated property) comes online in desirable areas it's snapped up. Not at super duper huge prices. But it's selling, and easily. Which makes me think that maybe Melbourne isn't quite the dead duck yet.
It only takes a swing in confidence the other way (election – we are awaiting) and then people start to spend again. Hesitantly at first, then when the painful memories start to fade away and people 'forget' there every was a GFC then the market will swing along again.
My two cents. And I'll wait with baited breath what Freckle will say. I personally find graphs in the middle of text distracting.
LOL
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHi all,
You might also want to pick up a copy of Margaret Lomas book '20 Must Ask Questions for Every Property Investor'. it's a good starting point if you have never looked at any property before.
For reno's an flips you'll also need to speak to some realestate agents and start finding out prices for unrenovated and renovated properties. You need to be looking for a large gap between these two prices to even start contemplating a renovation in a suburb.
Good luck, there is heaps of information on here, and ask as many questions as you like
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Me
and try not to get bogged down in what happened previously.
