I am looking to buy my first IP in WA at the moment but following Steve’s principles am finding it hard to locate any properties. Does anyone have any advice i.e. should I wait?
Kelly Williams
I really wouldn’t wait – the market is still growing too strongly and you ma miss the boat altogether.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Kelly,
I am fairly new here and was in the same position as you too, but as you say it’s hard but not impossible
This week I have found two positive geared properties alone, wont tell you exactly where they are because still in nego the price.
Keep going and searching.
Can give you a little tip, when searching for example realestate.com, click on the agents and also go through their personal listing, you maybe surprised.
Good luck [biggrin]
Hi Kelly,
It is very frustrating at the moment trying to search for a positively geared property especially in the metro of WA.
If you are seeking a great level entry IP then I would highly recommend the Kwinana strip which has WA most affordable housing which is set to boom. You can still get 3×1 Brick tile homes/ IP for less than 200K where the median price of Perth is in excess of 300K.
Good luck and all the best.
Always on the hunt!!
Prakman
LOTS of +CF IP’s in WA
Best I found was in a town of 30 people, are these the kind of deals you are interested in?
Wasp
**************************************************Its not what you earn but what you do with what you earn
Hi,
I am also new to the site but perhaps even newer than most I think (?). Just trying to figure out what these abbreviations all mean? IP and alike?
I know this probably isn’t the most appropriate place to ask but I was very interested in the
topic.Back onto the topic..have you looked down south? Eg short-term accomodation. We have done a bit of work down there and there’s definately opp’s for +ve geared stuff with a bonus ‘lifestyle’ investment upside.
IP = investment Property
PPOR = Principle Place of Residence
+ve = posivitve
-ve = negativeI think there is a post listing all the abbreviations somewhere.
Hello Kelly
If you have been to any of Steve’s recent seminars or are part of his RESULTS group (as I am) you will know that in the current market he says that if you are looking to find an 11 second solution property from the internet, then you “are dreaming” ( to quote The Castle).
You will also know that there is no such thing as the “right area”.
Steve says Solve Problems to find cash flow positive properties. He also says get out there and look at properties.
The current market has lots of opportunities. It is a really good time to be looking and buting.
Best regards
Dale
Hi Purple Kiss,
Huge thanks! Thought thats what they may have been.
Yes, IMO definitely worth buying in WA as the market is still surging ahead. We bought an IP a couple of months ago and currently looking for another. As for cashflow +ve, I think you are dreaming unless you’re buying commercial, residential at the higher end of the price scale or low cost rural properties. With regard this last point, a word of caution…when searching look at other factors beyond cashflow +ve alone. You can still find cheap, +ve cashflor IP’s in some of the small rural towns. Just weigh up the risks though as some of these towns have contracting or stagnant populations with no real growth prospects. Many of the properties are old and if not already will become maintenance nightmares. In summary, you might get +ve cashflow for say 5 years but you could find rent yeilds dropping, maintenance costs rising and little chance of CG. In fact you may even find it impossible to sell to stop the bleed. Until the boom I personally know of several towns where you could barely give houses away, now suddenly they are “great investment opportunities”, with rising prices being driven by cashflow +ve investors rather than real, tangible economic growth such as higher employment, increasing population etc. Not my intention to scare monger, just being very familiar with many of the small WA communities, I urge you to do your homework thoroughly and weigh up the risk/rewards carefully.
To counter the 11 sec rule we decided to look for properties in Qld where we could onsell under a License to Occupy Contract with a ballon payment similar to shared equity shceme.
Having bought and onsold 6 in the last month we are finding that the +cash flow is still there you just have to adapt to the market.
One of the pluses is that you get your cash flow each month and your capital growth at the end of the contract.
With every problem there is a solution waiting to be found.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
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