All Topics / Help Needed! / What to do??

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of milkmanjrmilkmanjr
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    @milkmanjr
    Join Date: 2003
    Post Count: 129
    March 1, 2004 - 12:27 pm

    Part One:
    I have found a family desperate to rent in certain suburb, where rentals are very scarce. They have no intention of moving to a different area. They can’t get regular finance, but are willing to pay up to $180 pw rent (preferably $160 max, but they are really getting desperate).

    Part Two:
    In the same area there are 6 properties for sale in the $100k – $150k range. No great potential for CG, but that is not my reason for investing.

    What would be the best method? Should I try to purchase the lowest valued property and rent for the most, ie 100k IP with $180/wk rent? Or should I look at wrapping it.

    This will be my first IP purchase and I want to get away to a good start.

    If theres something I’ve left out, or other variables to consider, let me know and I will try to answer.

    Thanks

    James [:D]

    Profile photo of techatecha
    Member
    @techa
    Join Date: 2004
    Post Count: 79
    March 1, 2004 - 12:52 pm

    but that is not my reason for investing.

    Hmm Im interested is then your reason

    a passive income?

    I personally buy for C/G and gear to be atleast neutral.I have no idea about wraps so cannot comment.
    (They remind me of derivatives in the markets!)

    Passive income is not on the agenda—-yet.

    What is your thinking?
    John

    Profile photo of milkmanjrmilkmanjr
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    @milkmanjr
    Join Date: 2003
    Post Count: 129
    March 1, 2004 - 10:50 pm

    Passive income is the main goal, with CG an added benefit.

    James

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 1, 2004 - 11:36 pm

    Wrap

    I can understand techa’s comments about a wrap being similar to a derivative in the markets. It sounds like he doesnt understand what a wrap is. Why not get the best of both worlds.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

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

    Richard Taylor | Australia's leading private lender

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    March 2, 2004 - 3:46 am

    If you know that the area is scarce and you can buy at a lower price for higher rental yield, why wouldn’t you?

    It’s also depend on the area that you talking about whether there’s huge population there or not.

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of milkmanjrmilkmanjr
    Member
    @milkmanjr
    Join Date: 2003
    Post Count: 129
    March 2, 2004 - 5:53 am

    Thanks for the replies,
    I think we will go ahead with a purchase and rent. There is a decent sized population (not sure exact numbers.)

    James

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429
    March 2, 2004 - 2:19 pm

    James, I would also let your (prospective) tenants perhaps have a say in which house – if they will be long term ones

    Perhaps a Wrap could be an option too.

    Cheers
    Mel

    Profile photo of milkmanjrmilkmanjr
    Member
    @milkmanjr
    Join Date: 2003
    Post Count: 129
    March 3, 2004 - 5:46 am

    Thanks Mel,
    We were actually going to go and look at houses with them on the weekend :)
    They will be long term renters, as they seem to really be stuck in the rat race.

    James

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