Did anyone see A Curent Affair last night regarding cheap properties in regional Australia?
What are your thoughts? Would you buy an IP so far away from home?
From what I have read isn’t it better to buy IP’s close to where you live? eg: within an hour or two drive away? Wouldn’t it be difficult to manage an IP so far away?Yes, I did. With recent +ve gear properties speculation, I am pretty wary about investing in anything around 50k in whatsoever region. Since continuous rental income is higly expected, research into the area is a must to me. More over, to say “passive income”, what would you do everyday owning 300 properties? Leaving them to hired hands? I agree with someone on this board (sorry forgot your name!) that when everyone crazes about real estate, I look at shares. [
]Hi,
If you are adopting a buy and hold strategy then cheaper properties will help you to maximise yield, as rent and prices do not raise at comparative rates.
For example, a 3Br home in a regional area might rent for $180 per week and be worth $90,000. A 3Br home in a metro area might rent for $250 per week, but be worth $250,000!
As such, if you are looking to invest for +ve cashflow then you might have no option but to invest from out of town. If this is the case then you want to be sure that you complete a thorough due diligence of the area (including the rental demand) before buying. It would also be essential to have a qualified builder complete an inspection for you.
Sadly, the days of buying a +ve cashflow buy and hold property within 1 hrs drive of most metro areas are over. No point lamenting about lost opportunity though… look forward to tomorrow and backwards to yesterday!
As for being difficult to manage an IP so far away… that’s what God invested rental managers for [
]Thanks for your post and happy investing!
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Agree!!
From a mortgage lending perspective, towns with populations greater than 10,000 within 10km zone are easier to lend for, but if you have any queries about other postcodes just stick them up on the forum and one of the broker folk would be happy to help.
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MelThanks Steve. Saw you and Dave on TV (channel 7 QLD) yesterday. Still reading your book (half done). Never laughed so much reading book on investment [
] . Bye for now (still need to work).Thanks Steve,
I live in Ballarat and cannot find rental +ve cashflow property here. Anyway, I do prefer the idea of wraps compared to rental properties.Do you still invest in properties in Ballarat?
I have looked at Colac, but houses are expensive there as well.Is it viable to wrap so far away from where you live?
I eagerly watched it on the telly last night and even more eagerly I entered the Millionaire Challennge.[
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Have read Steve’s Book and would love to take the challenge up with him.[8D]
I think people who are quite sceptical need to read the book first before forming opinions. []nu gen
Hy Steve + property is hard to find in this climate but never give up they are still around . AS interest rates go up people who have over commited will have to sell so more + property will finds its way on the market and make us all happy investers.
To me, those properties looked mostly “dumps”.
Is the population stable?
Are these places rentable, what is the infrastructure.
I wouldn’t be buying just for the sake of it.Remember, your not buying the property to live in yourself, but for someone else to live in it. They may already be renting the property and think it is a palace.
My thoughts [
]Actually I bought a block of flats in one of the towns mentioned, Whyhalla SA, 8 x 2 bedders for $320,000, earlier in the year and due to settle shortly,which rents for about 41k a year. Nice coastal town and about 25,000 in population. Lots of very cheap houses that arent dumps and + cashflow.
[
]reggie,
do not become emotionally involved when looking for an IP. do the due diligence and if the area is stable, the rental outlook is bright and the numbers add up, then looking like a “dump” could be to your advantage. it also offers the prospect of improvement through renovations.
cheers
[8D][:)No doubt after the Current Affair segment on those properties, it might possibly create a bit of interest in some of those places.
Unfortunately I was out of town on business and missed the article on ACA. What was the brief overview? Which towns were mentioned?
Cheers,
Battz
VB, in relation to Grenfell, that would be the just the effect they are after, the person in charge of town promotion seems to be very pro- active in this regard.
Grenfell has appeared on numerous current affair type shows over the last few years, tempting new people to town, the council will pay fuel costs for example.
BC
my father in law grew up in temora near grenfell.my mortgage broker told me to steer clear of towns that have such a small population because the bank classes them as high risk and are very reluctant to lend.the population of these towns are under 5000 and i see that as a risk.
Hi Batz,
If you go to http://aca.ninemsn.com.au/stories/1499.asp you should be able to read the story and find out the towns mentioned.[]
Linda
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] . Bye for now (still need to work).
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