Hi I am new to the +properties scene and live in Sydney. I know it is virtually impossible to find a +property in Sydney. But where in the regional area’s do you look. Anybody got advice?[:X]
G’day…
Try Wagga Wagga…..cause there’s a military base
and Armidale….University on tap.You will get 11-12% if u look hard enough.
Happy hunting.Billfromoz
G’day…Try Wagga Wagga…..cause there’s a military base
and Armidale….University on tap.You will get 11-12% if u look hard enough.
Happy hunting.Billfromoz
hello there!
Bill i am not sure when you last had a lookl at the wagga market but at this stage i do not belive that wagga can return a +10% return on anything that is available for sale here. i have a couple there which i had brought in Feburary which are not giving me 11/12% i had them revalued last week which gave an increase in value of about 20% Great for me but Rent has not increased by 20% here… Even shoty units are selling for big money and the rent is no where near catching up yet. that is what happens when there is a sharp increase in property value which wagga wagga has seen in the last 12-18 months. Look at wagga wagga again in 4 years. houses will not have gone up much by then and the rent will have finally caught back up this is when you can get in on somthing that will make you some money and steadily increase in value. But now…. Too much Money not enough Profit.
Start looking somewhere else or waiting….
Hi I am new to the +properties scene and live in Sydney. I know it is virtually impossible to find a +property in Sydney. But where in the regional area’s do you look. Anybody got advice?[:X]
I may be able to help. Drop me a line [email protected]Buy a big map of Australia showing regional NSW towns and suburbs, do research base on the town you are interested and take a good tour into the town.
Good luck.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Have you done the numbers on a cosmetic renovation to say a second hand well located two bedroom unit close to excellent ammenities.
I enclude a furniture package(tax deductable) as a give away incentive to a tennant if they sign a two year rental guarantee.
regards Phil
In terms of cash flow positive, you will be VERY VERY lucky to find a place in regional NSW unless you have a sizeable deposit (I myself are looking for +ve with borrowing 105%). I have just spent three days in the central west and there is NUTHIN around that is even close to +ve. 12 months ago yes, but not now. Even in towns around 5,000 pop, there is little to no chance of finding one. There were perhaps 30 other ‘investors’ like me in the towns on Monday and Tuesday looking at the same.
I have not given up hope though. I am looking at other ways to make money in the property market.I am also of the opinion that as long as I do my due dilligence right, an IP in certain towns that is currently losing perhaps $15 a week can become positive (and capital gain) within 12 months. I am about to make an offer on a such property I saw last Tuesday.
Good luck and perhaps you should look outside NSW.
‘Eat rich food, barbeque a yuppie’
first time user, long-time reader. Have got to say that decent deals are still out there, as evidence i have just signed on 4 x 2bd units with single title in regional location within easy commuting distance of city with 35,000+. Showing gross return of 13.5% on purchase price, with some growth in rental available. What you need to be comfortable with is yield is only a reflection of risk – ie something with 13.5% gross is going to have a greater degree of risk then, say a beachfront property showing only 3.5% which one would assume is relatively risk-free. Not going to give locations though, dont think that is fair to me or any other punter doing the yards to get their own deals over the line. Nevertheless, ‘keep the faith’ and happy hunting.
Goodluck to you cheersnbeers. I congratulate you on finding such a place and I wish you luck with the tenanting side of things too.
Can I ask what the 4 x 2 bedders cost you all up?
‘Eat rich food, barbeque a yuppie’
there all tenanted at the moment, but complex needs a bit of work – but only cosmetic stuff – paint, new carpet in one, few lights to the outside. Purchase price of $150,000, first to admit was lucky to get it – previous purchaser pulled out after tagging the vendor along for 2 months. Right place right time, im sure everyone is entitled to at least one win!!
I know of two +pos cash flow properties in Regional NSW – both blocks of units. Please EMail me for more info which I’ll give you for free.
[email protected]God, it’s hard enough findimng one good/normal tenant. finding people who are not maniacs for a whole block of units! The mind boggles! [8]
kay henry
Hi Kay,
I bought a blocks of 4 units (pos cash flow) last March in Tamworth and have had no hassles at all – all have been fully tenanted with all decent tenants, paying regularly. They are managed by a good agent-I think this is the key.
On top of that the units went up 30% in value – didn’t expect that, as bought them for long term rental income. So you never know – need to assess each property on its merits.
Cheers,
Tegan[
][]I had a look at the two properties you mentioned Tegan, I can’t see how either are cashflow positive though.
Boggabri units are only 9 – 10% return. I need 13% to make it positive. As it stands it does not even meet the 11 second rule.
Narrabri units are only 8% return, again not close to positive.
They may indeed be good buys and a good investment but are not cash flow positive.
Good luck with selling them though, I am sure you will have no problems selling them in the current market.
‘Eat rich food, barbeque a yuppie’
Thanks, Rugbyfan,
It depends what you think the formula should be – as long as it pays the mortgage and gives a small return on top (using opm )then can’t be too bad. I don’t think you’ll find 13% these days. But let me know if you do – and where – I’m into renovating properties and onselling.Warm regards,
Tegan
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