This week Steve McKnight has been in the news – 130 properties purchased since 1999. He recommends investors only buy when the weekly rent divided by 2 and multiplied by 1000 is greater than the purchase price. The closest we have got with our six properties to Steve’s recommendation is a unit at $89,000 with a return of $180 pw. Such top buys are extremely hard to find. How has Steve managed 130 using this principle?
When I was on the Gold Coast, I couldn’t find
any properties that matched steve’s
[Rent / 2] * 1000 > house price $
formula. How about others out there? I am sure
there are bargains that are just below fitting
in with the formula.Steve achieved that return on about a third of his properties by wrapping and LPO’s I believe – hence their attractiveness!! [
]Re SE Qld – it’s tough, but they’re around. Ones I’ve seen/heard of recently include run-down student accomodation in Sunnybank, under major power lines, out west near Esk, wraps on the sunshine coast hinterland etc.
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MelI managed to find 2 in sydney, but it was not easy though
hi all
up until recently these deals were all over the place, in regional towns and cities.
In the past 18 month i’ve bought
40k rent 110pw
44k rent 130pw
40k rent 100pw all in Hamilton Vic
40k 115pw in stawell Vican example of this year
75k 155pw in Horsham Vic
42k 105pw in Stawell Vicso they were out there Steve was able to buy when there were many available. Today you have to look harder
westanWestan, you should know better! [
]Those agents in Hamilton, Stawell and Horsham are going to get real busy now.
Rod.
Hi Rod,
I wonder how many people will just hop on realestate.com.au and punch in a search for Stawell, Horsham and Hamilton… if it comes back with no properties that fit the solution, they’ll just say “ah, there’s nothing there”… of course, a percentage will actually hit the phones, and hell, even go for a drive down there…
cheers
rThats exactly what I was getting at Richmond,
Hey, my mob plays your lot this weekend – go Hawks. (That’ll probably get Westan started as well).
Not a bad part of the world you live at, I keep my plane just down the road at Wallan.
Rod.
Shirley
I purchased one last week in regional queensland for $25,000 and renting for $105 / week.I think that is well under Steve’s guideline. They are out there so stay patient.
Happy to help out if you decide to look in the State of sun & surf.
Cheers Richard
[email protected]There is no such thing as a problem. Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
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