For those of you out there who love to chase positive cashflow, look at Rosebery Tasmania. The mine is thriving and a very reliable local source tells me they are expanding their workforce, hence many cash rich tenants. The average miner earns upwards of $700 per week.
I have received simmilar information – so will do some more research and see!
Gerard
One can pick up 4 houses for around $200,000. Rental works out at around $100 pw per property, therefore $400 per week all up. These investments are positive
Hey are you trying to talk up the market to increase your capital gains!!
Terryw
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for newer people, be very careful about rosebery, yorker has been talking it up for some time, but I would do plenty of research before even considering investing there.
cheers
rHow about an alternative Richmond? Obviously you lack experience in this region, hence suggest you get your hand off it pal.
if you own a house in an area you are plugging in my opinion you should atleast tell us and we can make up our own minds if there is a conflict of interest. duty of disclosure…
cheers
Just curious, does such a duty exist?
I personally appreciate all information that investors offer me.Good point.
I own property in Tasmania, however sold out of Rosebery about 6 months ago. I’m looking to get back in due to this new information that has come my way. Going for additional finance approval.tough deal – in that case have i got a great house for you…
in all seriousness if someone is pushing something or selling something you should check if someone has a vested interest in doing so. i tell everyone where i live is great just in the vain hope it might push up house prices. truth is me living there has probably bought down the mediun house price for which i apoligize to all my neighbours incase any may be watching……yorker – if what you say is true then your charity is amazing. if i was you i would have bought a few places first, then spread the good news. good luck.
I have enough and have already secured what I want. I don’t think its charity really as people on this forum still have to negotiate their deals and complete the whole process. Most people would not go near Tasmania, however it does provide some diversification.
Just checked out a few stats for those who are interested>
Rosebury has 1300 people.
According to one site:
There are two groups – a) miners
b) unemployed / pension / retired.Lots of people moving from within the state because of cheap housing
Two mines tin & zinc – one owned by Pasminco (under receivers, bought out by Zinifex)
Zinifex (formerly Pasminco) zinc mine. Tel: – (03) 6473 2222
and the soon to re-open Bluestone tin mine (formerly Renison Bell) Tel:- (03) 6473 2732.
This website said that the miners work a four day shift and stay elsewhere in the state usually.
Lots of transient type housing required?
Hi all
anyone interested in Rosebery should be very wary. firstly this property will not be cash positive 50K for 100pw will not work if you want properties that put money in your pocket each week.
Secondly i’d be very carefl investing in a tiny town that lacks infrastructure and has seen a 55% population decline since 1976.If interested in Rosebery do a search on this forum under “rosebery” and see what people have to say.
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
The west coast of tassie, deals aplenty, agents none.
Not one agent has an office on the west coast, most manage to drive from Burnie or Devonport weekly for listings. There is not enough business to sustain an agent so what does this tell you??
Stay out, stay away and for those of you that wish to waste time and money in a 1 1/2 horse town like Rosebury, go ahead, means that the nicer suburbs and properties are left for us.
People may retire there but its those hard on their luck so dont expect massive rent rises, or awesome capital growth.
For the wombat that says $100/wk from a $50k house isnt positive. Poppycock!!!!! 100/50 gives you 2 to 1 ratio or 10%. Even if you have one of the awful local agents that try to screw you for 10% management rate you still get a gross 9%. Interest at 7.2% leaves you 1.8% for rates, and maintainance which is minimal in most cases.
I think what you were trying to say is that you personally wont get much out of it after costs. This is true, but it wont cost you anything either. Maybe you need to rework your sums a little.
DD[biggrin]
Don’t sweat the small stuff,and it’s all small stuff!!
I agree with you DD. I have never said this area will turn you into a millionaire over night. However each week these properties will indeed put money in your pocket. As far as tenants go, that is a major bonus of this town. Indeed many miners actually rent houses in Rosebery and own coastal retreats elsewhere. You have tenants who are cashed up and require little maintenance as they are seldom above ground.
Don’t listen to the mindless sceptics.Hi DD
You said
For the wombat that says $100/wk from a $50k house isnt positive. Poppycock!!!!!well lets see
$100 pw on a $50,000 property Lets do the sums.
Say you have 20% deposit and loan 40k at 7.25%
Interest payments will be $2,900
Rates (high in tas) my guess $1,200
Insurance $300
Management (is there a manager in town ?? 500
Repairs (should allow at least) 300
Total Cost of ownership $5,200
On rent of $100 per week lets allow 48 weeks of letting that $4,800, now i haven’t even included a letting fee. This high rain fall area and timber homes i think allowing 300 for maintainence per year may not be enough either. But you get the idea.
So this deal isn’t cash positive it is a negative geared deal. Best to invest in Cash Positive properties i always say, ones that put money in your pocket. Sadly many are thinking they are buying cash positive but they aren’t.So sometimes Wombats know what they are talking about[biggrin],
This is where just looking at the yeild and thinking it is cash positive doesn’t work. You need to look at all the figure to assess whether the deal is cash positive. Sometimes 10% is cash positive but rarely on properties under 70K, if the property is only 50k you would want at least 120pw to even start to consider the deal.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
I agree with Westan, also not included is the recent talk of interest rate rising. Those who believe interest rates are going to remain at current levels for a long period of time are kidding themselves.The investment properties I have were recently pit under the microscope by my wife and they certainly werent putting in as much cash into my pocket as I first thought.[biggrin]
Martin
Westan, always the sceptic. OK so you wouldnt, but neither would I based on location and being solely reliant on one industry in the area.
Yorker is confident about it so thats great. If we were all as stringent as you I personally wouldnt have a house overlooking the water in Coffs Harbour, three years after starting investing.
Ok so I am less concerned with 48 weeks or 52 as I have had only one house in IPswich that took 4 months to rent. Hasnt missed a beat for a year now so on average based on our current 20 IP’s and our house that aint bad buddy.
Sorry to get your back up but boy, everytime I have dealt with Kiwis you have always been the toughest to deal with from both sides of the fence. That means you are harder to bluff, and less likely to sell me a bargain. (Thats a compliment in case you missed it)
I love the fact that everyone in here thinks and does things slightly differently so lets agree to disagree on figures here, as my criteria isnt devised by using a HB pencil and triplicate carbon. I am usually not thinking three steps ahead, but rather thinking how I can swing this one or that one around to be positive.
So interest rates go up,yawn, so top end of market takes a plunge, yawn, so lets still be sharing our opinions in here in 5 years time as freely and subjectively as we are now.
Great to see different perspectives as it keeps us all on our toes.
DD[bigeyes]
Don’t sweat the small stuff,and it’s all small stuff!!
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