Hi thought i just posted this but it didnt come up?? anyway thinking of buying first ip in country SA – It is about 1 and a half hours from adelaide and 30 min from outer suburbs. There is factory and farming industry but the population is under 10000. Is this risky? i know a real estate agent there and he says he has a list of people wanting to rent. You can get a house 3 bed for 75-80 and rent for 150ish. Sound ok but still skeptical – what do all the experienced! investors out there think??
Hi rickyw
I am a newbie to this forum but will give you my opinon anyway [
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If the prices are around the 75000 mark and you can get 150 pw for them then that is borderline to the 11 sec rule. do your research and crunch your numbers, ask more real estates what their demand for rentals is.Hi Ricky,
Although it is on borderline it’s certainly better than being 250K and rent for $150 per week.
Having said that you need to be comfortable of what you are doing. Finding PGP (Positively Geared Properties) is not enough if you are not familiar with the area at all.
My suggestion would be that you should see the area before you commit yourself no matter how good it sounds on paper.
“Don’t work for money, Let the money work for you”
[
]Hey Rickyw,
Personaly, in my opinion, a small town is pretty risky. I think you should spend a few hours looking at that area, and not just take the real estates word. Take a look at the statistic links that propertyinvesting.com offers and see if there is anything on the town you are looking at.https://www.propertyinvesting.com/links
Its all about doing your own due dilligence.
Hope this helps.
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Hi rickyw,
To be honest, sometimes a deal might seem too good, and it may make you feel uncertain and a bit weary to grab it and invest in it.
For me personally, i think the selling price is still to much and that the property is not positivly geared, this property would fall more under a neutral geared position, though, one of the guys i talk to on here in person, we both have come to agree that you need to be aiming for about 14% yeild return for the property to be positive if you are using 100% finance, though for this property, i would be aiming to put down a 25% cash deposit for it, to be positively geared.
hope this helps
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
http://www.theenlightenedway.com/tools/mil_calc.shtml
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