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Hello people!
I will tell you the reason!!!!!
The west is flat and has a lot of estates that do not have outstanding features that people will pay more to live near. Except – williamstown, Altona, etc they have beach and closer to city.
The same reason the places in the East or North have lower values – Cranbourne, Dandenong or Thomastown for example, flat with no outstanding features.
These lack of features will not put demand on a property/area which is what drives prices up.
Just my opinion, not bagging out any area as such
Hey Reno,
there has been a previous post on Frankston you can look at if you search it.
The general consensis is that the properties will increase in value especially when the freeway is finished. Rental yields are low which is keeping some investors away at the moment. Apparently what I can make out is that there will be a gradual slow climb over the coming two years and then it will increase very quickly from there upon finalisation of freeway.
So, it depends on your cashflow and if you are happy to finance a property for now, for cap gain later?<br /:)” title=”>:)” class=”bbcode_smiley” /> TracyHi Nucopia,
You have a good pos cash flow portfolio there! Good work.Property 1. Home paid $142k valued $350k owe $118k (originally paid $80k but did extension)
Property 2. Cairns paid $80k, valued $140k get $150 per week rent
Property 3 Kalgoorlie paid $136k, valued $230k get $270 per week rent
Property 4 Deception bay paid $180k valued $220k get $190 per week (about to put it up!)
Property 5 George Town, Tas paid $145k, just settling now, get $175 per weekam about to start to look for a pos cash flow property to balance out any negatives we have. Am also working on reducing home loan debt!! I hate looking at it!! Have found a new strategy I am working on.
Brisbane is still predicted to go up! I bought in Deception Bay 1 year ago, still think it is undervalued though! You can get properties walking distance from the water for around $250k! Yield is not too bad, but will pick up Im sure
Hi Lyndon,
You are right to be worried as it seems like your parents have based the decision on these apartments being a good investment because 1) The RE Agent says so! and 2) they liked the area while visiting on holidays!
The worst reasons to buy real estate!
I have a 2 bedroom unit in Cairns that is currently valued at $125k, so $535k sounds a lot to me, mind you, my unit is not on the esplanade and is 5 mins away from CBD.
I guess what your parents need to ascertain is the REASON for the purchase. What is their strategy? What would happen if there is an over supply of these apartments and there are no tenants for them? Can they afford the payments?
They must understand that a rental guarantee from a RE agent is not worth the paper it is written on, so they are really just guessing what the income may be.
The other thing is glossy brochures and websites scare me! (If it looks too good to be true, then it usually is!) Mum and Dad investors usually get caught out in these apartment situations (Gold Coast anyone?)
HAVING said all of that, Cairns is a growing economy with low vacancy rates for tenants. There are new flights starting in August going to Japan and also the airport is being upgraded. The population is growing too…
Many things to think about, but you are right with the due diligence, it must always be carried out, otherwise you are running a huge risk.
This is a tricky one, as some parents just cant be told!
Good luck
:)” title=”>:)” class=”bbcode_smiley” /> Tracy
