Hi Everyone,
I did a quick search on RealEstate.com.au yesterday and came across this listing:
It’s a listing for 1br/1ba apartments in QLD. There’s 24 of these things.. close to CBD (of Cairns I think) and shopping apparently, and $36500 each. Rental is $110-$115 per week.
The 11 second soln for these things is ($110 * 1000) / 2 = $55000.. meaning we ought to be willing to pay $18500 (50%!!!!!!) more *than the asking price* for this property and still consider it positive cashflow.
Now, I live in Sydney.. and I’ve got a snowflake’s chance in hell of being able to go up and look at one of these things.. so it’s highly unlikely I’ll be able to actually buy one.. and in any case there are a couple compelling reasons why I think there *has* to be something seriously wrong with these properties:
1) A know-nothing never-done-any-property-investing never-actually-bought-a-property-before-in-my-life-person like myself was able to find this property in minutes.. on the internet!
2) It hasn’t already been snapped up by some of you guys who are smarter/faster/more connected/more experienced/better than me…
So my question, to all of you out there who have actually done some property investing before and know what you’re talking about, is what is it that’s wrong with this property???
Why hasn’t it been bought long ago? How can an inexperienced person like me learn to be able to see whatever it is that’s wrong with this property in other properties, so we don’t buy a lemon?????????
Thanks.
Check a couple of things:
1. Body corporate and management fees.
2. That the price quoted is correct.
3. If you make an offer make it subject to finance (to ensure a valuation).Are these motel rooms? Even if not, they are probably short term let to tourists. Maybe there will be periods where they are not tennanted.
Hello Sjs, There are a lot more pos c/f propertys out there than there are buyers,you have successfully tuned in your brain to seek these out .Do your due dilligence-beleive in yourself and go hard .Happy easter. .Andy
Hi
You’ve possibly discovered a great opportunity and as Mr Hedge states there are plenty of opportunities out there. You will need to do your research/dilligence and then quickly ACT upon it.
Unfortunately most people will see an ‘opportunity’ like this and put it down as too good to be true, there must be something wrong with it or I’m not smart enough. One the other hand, those in the game will do their research quickly, buy the peoperty and then move on to the next one.
I guess the question is ‘Do you want to get in the game or sit on the sidelines’?
I’ve bought several properties that I have never seen and possibly wil never see; the only thing I need to know is whether it makes me money or not. That’s it bottomline…
Just a thought
David U
Sjs,
I found this deals 2 weeks ago. I did some research and found that the place are for motel purpose as I remember. The vacancy rate are high. Eventhough it’s fit with 11 secs rule, but it does not fit when the vacancy rate is 40%.
I am in the same situation as you. Living in Sydney and don’t have time to flight to inspect interstate property as well as baby sit in the weekend. But I still found some good deals and bought some as well.
Keep looking, the deal is out there waiting for you.
Regards
Chandara
*************************
The truth is out there!
May the force be with you!
*************************Hi there,
a while ago I found one (on the net) for sale in Bathurst advertised at $160 per week rent for a $35,000 property….
however on another web-site (thanks to steve and brent who pointed it out) the exact same property was for rent at $65 per week.
I didn’t go for it, anyway I loathe bathurst (bad experience).
But I *loved* this comment….
> I’ve bought several properties that I have never seen and >possibly wil never see; the only thing I need to know is >whether it makes me money or not. That’s it bottomline…
Thank you so much for that signpost in my particular property investing road…..
cheers-
MiniLived in Cairns for a few years – wouldn’t go near Edmonton with a Barge Pole!!!
Too far (relatively) from the City and a young person or old person who would live in the bedsit would rather live nearer to facilities. As for being a successful motel – well I would rather stay in Cairns for the night and there is not much passing thru traffic in Cairns.
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