I have sourced this property. Currently getting additional information
Cheap Beutiful Country Home
Property type:
HousePrice:
$54900 Price Neg – make an offerAddress:
xxxxx NSW xxxxMap reference:
NSWStylish 2 bedroom home with sunroom. Includes laundry, kitchen, lounge and dinning areas. The house contains built in furniture and features spacious porch and undercover carport. The house is situated on an extra large block of land with well maintained gardens.
It is in walking distance of centre of town including; retail establishments, local schools, swimming pool, and medical facilities.
The town of xxxxxxx is a small but growing community. This home is not only a peacefull place to live but also an excellent investment.
What are your thoughts…would rent for 135-140 per week. Your comments please.
Photographs indicate modern, well maintained property on 1 acre plus parcel of land. My thoughts would be to relocate other houses on additional land.
Kelvin J Brennan
Kelvin – I removed the town name. would hate someone else to jump on it before you make a decision……
Simon
Many thanks for your help..I meant to remove it before I posted but excited and made an oversight.Kelvin
HI Kelvin,
The property certainly fits the 11-second rule and if you’re sure that there is rental demand for this type of property in the area and you have done all your pest and building inspections then why not go for it?
Remember, don’t get over excited, keep a cool head, do ALL your due dilligence checks and if you are confident you’ve covered all your bases go for it.
Cheers, Nobleone
Originally posted by kelbren:The town of xxxxxxx is a small but growing community. This home is not only a peacefull place to live but also an excellent investment.
My thoughts would be to relocate other houses on additional land.
Hi Kelvin,
It is an interesting dilemma you find yourself in – publicise the name and someone may sweep the property from out under you but then our comments become a little ‘vague’ given our lack of knowledge of the area.
In many respect we can only ask questions that may help you clarify your decision so here goes.
The ad claimed the town is ‘growing’ at what rate and by how much? Is this a long/short term trend? What employment prospects are there for the growing population? Why are they moving into the area?
The ad also claims that the property would make an ideal ‘investment’ – why? who says so – the agent trying to sell a property? what are the short and long term vacancy rates in the town like? What sort of growth is there in the area (forget the last 2 unusual years)?
Will the local council allow you to ‘subdivide’? Will locals go for it? My experience of country people is they like their piece of space and as such they may reject a smaller parcel of land.
And finally – sure it meets the 11 sec solution – but is it a good long term investment?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I would only buy something if there was good potential for capital growth. Rental yield is good, but won’t get you far without an increase in value.
Terryw
Discover Home Loans
North Sydney
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My experience tells me that good capital growth is something that in the main is restricted to capital cities and large regional centres or coastal cities and towns.
In a +cf environment rental yield is your “bread and butter” together with an innovative approach. In the case of this property the size of the parcel of land that lends itself to further development eg subdivision potential.
Kelvin J Brennan
as long as it’s not broken hill I say go for it!
“good capital growth is something that in the main is restricted to capital cities and large regional centres or coastal cities and towns.”
wrong I think, (firstly because I have experienced annual capital gain of 50 percent – that’s twice the rate of Manly sydney at the top of the boom – in towns of 8000 or less!!!) or rather red herring. capital growth is related to growth in *demand* not size of town or proximity to the coast, although those two things often go together with cities and coastal towns, it’s not the *reason* for CG.
for example, apartments in cities. OK the city is expanding but apartments are going down in value because of oversupply, lack of land content, high strata fees, sloppy building standards, being so trendy that they date quickly, etc. so therefore decline in demand. then again a small town nowhere near the coast which is getting a major factory plant in, properties will go through the roof as the *demand* manifests and people will want housing.
so if buying for capital gains look for *demand* growth in the future.
as long as it’s not broken hill I say go for it!
joy to the world
Hi Kelbren,
How old is the property?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
New to all this. Looking around forums
What’s wrong with Broken Hill ????
m
The house was built in 1986 and has been well maintained although some modernisation could be considered, the condition of the property is excellent
Kelvin J Brennan
What do you think Kelvin? That is the main thing.
[biggrin]
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am sure it is a goer. Have organised inspection for weekend…
Kelvin J Brennan
Originally posted by MiniMogul:“good capital growth is something that in the main is restricted to capital cities and large regional centres or coastal cities and towns.”
I believe Kelbren is correct in this statement
wrong I think, (firstly because I have experienced annual capital gain of 50 percent – that’s twice the rate of Manly sydney at the top of the boom – in towns of 8000 or less!!!) or rather red herring. capital growth is related to growth in *demand* not size of town or proximity to the coast, although those two things often go together with cities and coastal towns, it’s not the *reason* for CG.
for example, apartments in cities. OK the city is expanding but apartments are going down in value because of oversupply, lack of land content, high strata fees, sloppy building standards, being so trendy that they date quickly, etc. so therefore decline in demand. then again a small town nowhere near the coast which is getting a major factory plant in, properties will go through the roof as the *demand* manifests and people will want housing.
Hi Mini,
The inner city apartment ‘downturn’ is not an accurate picture of a sound investment decision made by learned investors. Nor is the recent, short term, 50% growth figure you refer to for one of your properties.
Both examples are results of unusual short term phenomena in the property market. Inner city apartments flogged off to o/seas or poorly educated investors at high priced seminars and country properties sold to people recklessly chasing cashflow creating ‘property bubbles’ in smaller communities.
Not once I have seen, on any forum, a seasoned investor say that inner city apartments are (or were) a good short term investment or an accurate barometer of metropolitan investments – sure some have said long term they should be OK but to use short term growth in inner city apartments as an example of growth achieved in cities is erroneous at best.
A better study, if you are talking growth, is to look at each and every capital city in Australia. In the period 1986 – 2003 net growth in dollar terms varied between $144K and $370K depending upon which city you invested in.
By way of comparison and using the property Kelbren has found it is nearly 20 years old and in that time has achieved the lofty value of $55K. I have no idea about construction costs here but even with a freeby construction and land this property has achieved poor growth in the long term.
Sure this is a single property and at the risk of being accused of selectively using statistics I argue that similar figures to those being displayed here are posted from time to time from all parts of Australia and New Zealand.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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