hello all
I did a search on http://www.domain.com.au and found the following property which seems a +cashflow property:
http://domain.com.au/listing.aspx?mode=BUY&id=2004207489It seems too easy to find a +cashflow property! but i know i can be very wrong since i’m a newbie. I don’t even know where Boggabilla is…
so did i just find a good deal? how should I analyse such a property? If you find this property on the internet, what approaches would you take to tell if it is a good deal?
thanks
kenGee, sounds good doesn’t it? I’d definitely want to know where bogabilla is. The owner wants to rent it back at $130 pw and is selling for 48k? To me, that sets off some alarm bells. How many reasons can you think of for that to happen? Let us know what you find out.
Regards
JudiHi Ken,
I suggest you do a ‘google’ search on Boggabilla – this will help you determine whether or not the property is right for you.
For me a population of 639 is too risky. The town itself is 769km north west of Sydney and can be found on the Q/NSW border near Goondiwindi.
As I have said in another post – Steve also reinforces the need for the property fundamentals to be right – it isn’t just a matter of getting a cashflow positive property.
Derek
Ken,
Bogabilla is on the Northern Border of N.S.W on the opposite side of the river to Gundawindi (ie the racehorse). Probably 12+ hrs from Sydney by car.
It is a very small town…..
Originally posted by Craig I:Ken,
Bogabilla is on the Northern Border of N.S.W on the opposite side of the river to Gundawindi (ie the racehorse). Probably 12+ hrs from Sydney by car.
It is a very small town…..
Yes, very small, Only 1200 people there!
Julain [
]THERE IS ALWAYS A BETTER WAY!
Some facts about the subject:
Property Prices* 12 months to Saturday, January 31, 2004
Houses 2409 NSW Country
Average $73,000 $220,339
Median $0 $192,000
Median change over last 12 months % 20%
Units 2409 NSW Country
Average $0 $212,772
Median $0 $185,000
Median change over last 12 months % 32%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property MonitorsDemographics
Population Size 2409 NSW
All People 1,250 6,372,211Country of Origin 2409 NSW
Australian Born 97% 70%Born Overseas – Top 5 2409 NSW
United Kingdom 1 1
New Zealand 2 2
Philippines 3 7
South Africa 4 12
Canada 5 28
Age Statistics 2409 NSW
20 to 39 29% 29%
5 to 19 28% 21%
40 to 59 22% 26%
0 to 4 11% 7%
60+ 10% 17%
Family Statistics – Top 5 2409 NSW
Never Married 1 2
Married 2 1
Divorced 3 3
Widowed 4 4
Seperated 5 5
Religion – Top 5 2409 NSW
Anglican 1 2
Catholic 2 1
No Religion 3 3
Presbyterian and Reformed 4 5
Uniting Church 5 4
Occupation – Top 5 2409 NSW
Labourers and Related Workers 1 8
Managers and Administrators 2 5
Intermediate Clerical/Sales/Service 3 2
Intermediate Production and Transport 4 7
Professionals 5 1
Education – Top 5 2409 NSW
Not Attending (Working) 1 1
Infants/Primary 2 2
Secondary Education 3 3
Technical or Further Education 4 5
Pre-School 5 6
Transport to Work – Top 5 2409 NSW
Car (driver) 1 1
Walked 2 5
Worked at home 3 3
Car (passenger) 4 2
Motor bike/scooter 5 9
Type of Dwelling – Top 3 2409 NSW
Separate house 1 1
Flat 2 2
Semi/Terrace 3 3
Nature of occupancy – Top 3 2409 NSW
Rented 1 2
Fully Owned 2 1
Purchasing 3 3
Monthly Loan Repayment – Top 5 2409 NSW
$400-$599 1 4
$800-$999 2 1
$600-$799 3 2
$200-$399 4 7
$1,500+ 5 3Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]HI Chan$,
It is interesting to see the discrepancies inpopulation statistics. My figure came from the Bogabilla website – I wonder if your figures include the whole postcode area – and not just the town itself.
Invariably postcode areas in these places are very large and can considerably distort the population figures.
Derek
I write this with the greatest respect to the people of Boggabilla.
Boggabilla is a very, very small town with a low population, very low income earners & tenants could be ethically questionable (is that the best way to say it?)
Perhaps a viewing of the DVD “Deliverance” may help you make a decision.
The flip side is that many of them are “salt of the earth” people.
Summary = way too riskyKen
When I went through Goondiwindi last year housing there struck me as quite dear, so the price in Boggabilla mightn’t be too bad if people who work in Goondi are prepared to live in Boggabilla and commute. Talk to a couple of agents about how likely you are to be able to rent after the 6 months is up.
A lot of valid points have been made. As part of your due diligence I suggest you check flooding, because I think it’s on the McIntyre River
As you’re in Sydney, running a business, you’re a long way from Boggabilla if you need to organise maintenance etc.
crj
Originally posted by Derek:HI Chan$,
It is interesting to see the discrepancies inpopulation statistics. My figure came from the Bogabilla website – I wonder if your figures include the whole postcode area – and not just the town itself.
Invariably postcode areas in these places are very large and can considerably distort the population figures.
Derek
The population that I found is base on postcode 2409, the statistics is provide by domain.com.au and I believe domain getting info for home price guide.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]DELIVERANCE..was funny, someone mentioned that exact movie to me about Collie WA..[}
]REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Here’s the numbers.
If i was going to get keen on this property, i would go to Bundawindi a week and research the place.
11 Second Solution:Rent = 120
Occupancy rate ‘4 Weeks’ = 92.31%
Solution = $55380.00
Asking price = $48000.00
Deposit 20% = $9600.00
Other closing costs = $2725.00Morgage details:
Loan P&I = $38400.00
Interest rate = 7.5%
Term = 25 Years
Weekly loan repayments = $65.49
Total repayments for life of loan = $85131.00Summary:
Total annual rent = $5759.00
Total annual morgage = $3405.61
Total annual costs = $2241.20
Total annual cashflow = $112.19
Total funded costs = $12325.00
Risk free return = $493.00 bank interest rate of 4%.
Annual Cash On Cash Return = 0.91 %
Cashflow Positive Weekly = $2.16
…..[?]…………………..[?]………………….. [?]…..************************************
This seems to be about demographic arrangements.
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