can anyone please direct me to the right area – I am lloking for a positively geared property – I don’t want to be out of pocket. I have two IP’s and on both I am out of pocket of about $200 each, a month. I can’t afford to keep going this way. I now have a deposit and would like to invest in a property that will bring money – preferably a house.
What areas if any should I look at? I have been looking for days on realestate.com
Thanks for any help.
How’s things??? Long time no hear/read!!! Good to see you back in the forum!!!
I’m afraid as far as positive geared IPs in Victoria, they are difficult to come by, and although they exist, are few and far between.
You may need to look interstate, although again, positive geared IPs are rare in other states too. Aside from this, the only other option may be o/s investing such as NZ.
If you ever want to chat, remember I am only around the corner from you; so give me a call, maybe we can share a cuppa!!!
Thanks so much Jo!
I have been reading your very interesting and very informative posts.
I am planning on investing again but just not sure which way to turn. My gut feeling says this time look for a larger house and rent out the one we are living in because my house is getting a bit tight for space with my 3 boys growing up so fast!!
I am currently looking at a larger house and there is nothing decent for less than around $400k – the repayments will be quite heavy!
Could possibly just invest in another house or unit to suit my budget by placing more than 15% deposit and this way it will be more a positively geared property.
I have just sent you a PM.
There are several options I guess, and it depends on what you feel most comfortable with.
I’d imagine with 3 growing boys you will need the space, and perhaps upgrading to a bigger home is the best way, however, there are still alot of larger homes around that can accommodate large families for less than 400K; it really depends on WHERE you want to move to.
I know there are quite a few double storey homes selling in some of the newer estates, houses that were once fetching 450K and are now below the 380K mark. It really is just a matter of shopping around, and lots of negotiating, which I know you are capable of!!!
As I said, feel free to call, I’ll be happy to talk through a few ideas with you if that is more suitable.
Jokay henryMember@kay-henryJoin Date: 2003Post Count: 2,737
It won’t be more positively geared if you add a larger deposit, but it will have greater cash on cash return- for what it’s worth. But you’ve still spent the deposit- so you have plus 30k and less return, or minus 30 and more return- much of a muchness.
Go gently with positively geared houses now, rose. If you’re financially strapped now by negative gearing, maybe it’s time to just pay up debt quickly, and then save for a deposit on what you know. A lot of the pozz geared houses on the market now are probably over-valued in prive and undervalued in rent. I mean, all our IP’s might be overvalued, but at least there’s choices- the PG property supply left in australia now- well, I don’t love it.
I have just attempted to reply to your email, but unfortunately it was undeliverable, and bounced back, hence you may need to take a look at your current email account.
I have therefore, cut and pasted my reply to your email in a PM, and forwarded it on through this site.
Either way, as we discussed earlier, the house you are inspecting tomorrow evening sounds like an excellent deal, and upward move for your family and business.
Good luck; keep us posted, we all love a happy ending!!! [biggrin]
JoDDMember@ddJoin Date: 2004Post Count: 508
Hi Rose, hi Jo, just wondering why the split in thinking. If you did get a bigger home near where you are now, i would only assume that you would not get enough rent out of your existing PPOR to cover the new mortgage.
Not being currently up on the Victorian market I cannot help there, but as Kay says there are other states and even NZ for you to look at for investment.
Tassie, Qld and the occasional WA property is worth looking at, and I know these well.
Good Luck, talk soon
DD(my 200th post yahooo!!!!!)
Don’t sweat the small stuff,and it’s all small stuff!!sabwalMember@sabwalJoin Date: 2003Post Count: 16
[confused2] Wher exactly do I look?
We are still getting 10-11 percent returns in growth areas and higher than that (up to around 14 percent if we’re lucky) in stable areas in NZ.
I would say it’s almost essential to get pre-approved for NZ purchasing before you go shopping. Very hard to sign up a deal subject to finance and then get finance in time. pre-approval seems to take a few weeks.
joy to the worldPropertyGuruParticipant@propertyguruJoin Date: 2003Post Count: 1,502
If some one interested in pre approval for NZ properties I can organise in few days only instead of weeks here from OZ only.
property guru, lovely!
tell me more! PM if necessary!
joy to the worldPropertyGuruParticipant@propertyguruJoin Date: 2003Post Count: 1,502
I will send you more info tomorrow.
Mortgage Consultantroray_2Member@roray_2Join Date: 2004Post Count: 4
Let me introduce myself. My name is RoseMarie, I was born and raised in Switzerland. Married to a wonderful man from Down Under.
We currently live in Switzerland, however planing to move back to OZ sometime next year.
I have read Steve’s book a couple of times and we are all pumped up to take the plunge into PG property investing.
For the last week or so I have been following the threads in this bulletin board and have gotten some very interesting information out of it. Thanks to everyone for their contributions.
From reading this thread I can see that NZ is the place to go for finding PG properties.
I will be in Australia mid November to end of January and was hoping to find a couple of PG properties during that time to start with, even if it means going to NZ.
Never been there and I wouldn’t have a clue where to start looking for a house or a unit. Some of you are obviously very savy NZ investors. Can anyone give me a hint with some names of towns or suburbs or maybe a website link where I can start my journey of searching. Many thanks in advance.
I look forward to participate in the forums once I have gained a bit more experience with PG property investing.
Hi all – THANKS SO MUCH for all your very informative responses!!!
We had a look at the big house – it was huge – so big that it really did not feel cosy like my current home is. The house looked appealing on the outside but the inside was just terribly spacy.
On finding out that the Stamp Duty alone would be in the vicinity of $20k – we thought we could better invest that money towards building on top. We already have our plans made by a consultant – to add three bedrooms, bathroom plus a retreat area and a balcony all up would cost $106k on top of my current mortgage – this will make my house total of 5 bedrooms plus a study – we will not be removing any bedrooms to place the staircase as the lounge is very big and it will be built in the corner of the lounge.
We are going to wait for the money and when we get it we plan to think it over again. If we build on top, its going to increase the value but not a lot I know – at the same time it means I save that stamp duty and I wont be under such a huge debt – I would rather have a small debt and live my life than to have a huge debt and busting my butt to pay it off!! With an IP, you have the rental income and it’s not as scary!!
Congratulations on your decision Rose,
Sometimes we need to stand back and look at the bigger picture, and this is exactly what you have done; a wise move in itself!!!
Just one point though, extending upwards (if done correctly) SHOULD add heaps of value, and as you’ve already identified can be much cheaper in the long term.
All the best,[biggrin]
are you talking about your own home, what will be a principal place of residence in Aus, or an investment as such (i.e. one you buy on the numbers).
I’m not saying that people can’t get emotional about their investments, or that PPORs can’t end up good ‘investments’, or that you shouldn’t no whatever you want to your PPOR to make it comfortable for you and your family, just that I think there is a gulf between the two. Also if you try to both emotionally satisfy and be a good investment all in the same property, I reckon you’d end up compromising both.
joy to the worldroray_2Member@roray_2Join Date: 2004Post Count: 4
Thank you for your response.
We have a prinicipal place of residence in Australia (QLD) and I am now strictly talking about purchasing positively geared Investment Properties.
Does that answer your question??
“Plan the work and work the plan”
Hi Rosemarie, Oh, I think I got you confused with Rose.
OK investing. I would say Queensland might still be good but I think NZ would be as good or better.
As far as specific towns and suburbs go, a few months ago KPI magazine quoted the top ten cashflow suburbs in NZ. kpimagazine.co.nz
I would recommend subscribing to both NZ property investing mags, the other is at goodreturns.co.nz
(look under magazines.)
Also go directly to realenz.co.nz and take a look at all the different regions and what is available in your price-range.
If you spend a few hours looking over a few nights throughout the whole country you will get a fairly good idea of prices and rental returns etc. Although not all of the ads mention the rentals, there are enough that say ‘investors look here!’ currently returning…XYZ to know what the ballpark is on offer. You can also check market rental stats in each of the towns on that site too. Of course your offer can be less than asking price.
then start making phone calls and speaking to rental managers about the actual property you are looking at.
if it all seems a bit hard basket not knowing the country then leverage off a bird dog, such as westan.
joy to the worldbyronent_2Participant@byronent_2Join Date: 2004Post Count: 337
This is my first post as I am new to this site.
But I can tell you for sure, there are still many positive geared properties in Gladstone Queensland. Beach town, some returning over 10%. Take a look and if you need some links let me know.
Cherry ComputersrichmondParticipant@richmondJoin Date: 2003Post Count: 831
are you talking residential or commercial, cos I can tell you that I’ve been watching gladstone for some time… have visited as well… and I’ve not seen one (residential)… I’m sure they would have been there a couple of years ago…
If you have links to show otherwise, it’d be good.