All Topics / General Property / postive geared properties?

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  • Profile photo of FrankYoungFrankYoung
    Member
    @frankyoung
    Join Date: 2003
    Post Count: 13

    if prices are rising so quickly even in the country areas, wouldn’t it be more difficult to find an investment property which you can positively gear? are p/geared investments a thing of the past? what do u think?

    thanks,

    franky

    Profile photo of lifestylelifestyle
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    @lifestyle
    Join Date: 2003
    Post Count: 22

    I hear ya brother.I feel like may be I’m a little behind the eight ball because now every one is in to it. While there are obviously still some bargins out there I would imagine it’s going to be that little bit harder. I’ve come up with my own little investment template after reading 0-135 and it differs from the books but I feel it is right for me. I would love to do it all as quick as Steve & Dave but I don’t think it will happen just yet. My template and stratigy will take a bit longer but I feel it will work for me. Fingers crossed. I even went out and bought maps of every state after reading 0-135. I’m not dashing out to but in the bush just yet. But I am looking at NZ.

    Profile photo of Traci-leeTraci-lee
    Member
    @traci-lee
    Join Date: 2003
    Post Count: 21

    Lifestyle,

    A neat little tool I found at the bookstore for getting a feel of a country town or to locate a particular street is-

    UBD Australia Country Cities & Towns (Digital Mapping on CD-Rom) ISBN-0-7319-1320-5
    Costs around $50.00
    Also has some cool tools for working out distances between places within a town eg- distance between IP and public school, hospital etc.

    There is also a version for Aust Cities Called “Six Cities”, This one is due to be updated in Nov.
    Regards,
    T.

    Profile photo of FrankYoungFrankYoung
    Member
    @frankyoung
    Join Date: 2003
    Post Count: 13

    I think your right. You really have to do your homework and go against the trend of what it seems like everyone is doing at the moment in property investing.Aren’t we all sheep! I try not to be.

    Regards,

    Mr Young

    Profile photo of MiniMogulMiniMogul
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    @minimogul
    Join Date: 2002
    Post Count: 1,414

    hi there,
    I read somewhere that only about 10 percent of properties in Australia are +ve cashflow. that sounds about right. So it’s impossible for the sheep AKA ‘most people’ to buy +ve CF anyway. Even people who know what +ve CF is – and that it exists at all and where you might find them – are not ‘average’ investors.

    Profile photo of redwingredwing
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    @redwing
    Join Date: 2003
    Post Count: 2,733

    guy’s don’t forget to look at the other areas of property (i.e industrial etc.. ) if you can pick something up with a good tenant and a reasonable leasing agreement.. you’re laughing[:0)]

    “The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Frank

    + Cash Flow definately not a thing of the past.
    MiniMoguls comments about 10% of properties having a positive cash flow doesn’t suprise me. Thats only 1 in 10. From the deals we look at it would certainly be more than that.
    Be positive do you research and if necessary engage an expert to give you a kick start.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    Profile photo of daydreamerdaydreamer
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    @daydreamer
    Join Date: 2003
    Post Count: 4

    Hi Frank
    Below is a spiel i wrote as a reply to recent topic named ‘Realistic.’ It shows +ve geared houses are diminishing but some remain with good growth prospects. ie. are situated in areas of strong employment.
    Realistic?
    Have you heard of Oakey? Its a small town of 4000 only 25 kms west of Toowoomba. The Defence force (we have a large helicopter base) placed 138 houses on the market about 6 years ago. Prior to seling every house was fully fenced(wooden pickets) re-painted and re-carpeted. The majority were hardiplank or camphorboard homes. The senior officers lived in brick homes.
    The result was it collapsed the housing market in Oakey. The houses were withdrawn and then re-released in batches of about 8. The result was the same. They sold slowly and all the non-brick houses at about the same price ie. $68,500. All are 3 bedroom with blocks between 700-850 sq. metres.
    Despite rapid price rises in toowoomba, Oakey was ignored. I found them in November 2002.I immediately bought 2 and then another 2. Word got around and the market started to pick up. the last 16 were released in february and i was lucky to get 1 more.
    The best part is they are all positively geared despite only a 10% deposit. Repayments are about $100 per week (20 year morgage)and rent is $140/week. Rates average about $27 perweek.
    Even better is the severe shortage of rental prperties. i checked yesterday and between the 2 real estae agents there were 3 houses for rent in Oakey.
    Other good news is that we also have 2 large abbotoirs nearby which employ huge numbers of people. Recently the Oakey abbatoir announced palns to increase facilities and employ an additional 700 full time workers!!
    Expansion has yet to begin but a new IGA supermarket is about to be built.
    I which i had found these bargains earlier and bought 20. The bank manager was shocked that the amount i could borrow would hardly decrease which each new house as they were positively geared.
    Anyway you can still consider oakey. current prices are now about $78,000 but at $145 per week are still positively geared with 25 year mortgage at 6.3%
    Stamp duty is low in Qld at these prices..about $1800 per house. the soldiers were very lazy and rang the housing authority for even the slightest mishap. hence houses are in very good nick.
    hope this helps
    PS Toowoomba and surrounds support population of 110,000.

    Profile photo of FrankYoungFrankYoung
    Member
    @frankyoung
    Join Date: 2003
    Post Count: 13

    If your right, SE QLD is still a good place to choose a +ve geared property, but I’m starting to think about further up north. There, it is easier (seems to be) to find positive cash flow real estate.[8)]

    Profile photo of DuncanDuncan
    Member
    @duncan
    Join Date: 2003
    Post Count: 3

    Hi

    Have you looked around Bundaberg, Qld. There was an announcement of a multi million dollar scallop farm employing 1500 people being opened in the area starting construction late 2003. The local port is in the developing stages,eg; new roads and buildings. the port is approx. 16ks from the city of Bundaberg at a town called Burnett Heads.
    Excuse me if the details are not exact but is there an opportunity here?[?]

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