Just wondering with all the prices of properties in main cities of Aus or even outskirts, good IP locations seems to be somewhere in the outback areas.
As per Steve’s book, knowing or getting familiar with the location as well as the locals is a very good investment.
Has anyone made good IP without actually going to these remote places? If it is a must to go there, how often is “enough”?
Remote places I mean like more than four hours drive and thus very hard to do investigation in one day – have to stay overnight or two.
Oh pleazzzzzzzzzzzzzz…………
How about reading a few posts first before you ask this question that has been done to death!!!!
Ouch – that’s harsh. Perhaps you should get a more rounded education alvin. Buying shitty little houses in shitty little towns because they are CF+ is a mugs game.
Try reading Spann, Somers et al, and perhaps some tax/trust books by Dale G. Goss, then get into investing when you have enough information to make INFORMED choices and not follow a herd that blew through years ago.
Ooooooohh, I take offence to that..
I live in one of those such places…Next you’ll be referring to the ppl that live there as “shitty” as well..
Well, we get yields approaching 11% on what we do,, with built in equity to boot ( don’t ask how much…you’ll die)
So before you make such aspersions and judgements and lump all remote areas into the same category, I suggest that you should also do some homework Anubis….
KP
TOUCH-DOWN!!!
I too am such a ‘shitty’ person!
Cheers
C@34
HAHAHAHAHA !!!!
Thats so funny Calvin…..Hows HBI…he
Heard some bad news…is it true??Oh well, you can clean up the mess and make good profits over the long term when those out of towners realise how poor the capital growth is compared to city properties and are sick of managing properties out in the sticks.
Port Hedland 3×1 sold in 1996 for $160K, sold again in 2002 for $224K, sold yesterday for $475K. WHo’d want those kind of CG?!
Not me……..fooie
Cheers
C@34
WOW!!!
I gotta start thinking outside my little square a bit more!!!I’ll offer an objective, polite answer to your quite innocent question, Alvin.
I’ve got city and country properties.
Yes, I’ve bought properties without seeing them and done well. Of course, I bought a couple before people like me from shitty big cities started buying indiscriminantly and pushing the prices up, so I rode that wave.
In hindsight, I didn’t do nearly enough research, but the market helped me. I took a few punts and they paid off both in terms of cash flow and capital gain. These days it’s tougher and I wouldn’t be ‘punting’. You need to do alot more homework – or use a bird dog who does some of it for you.
There are still good +cf properties out there if that’s what you’re after. I know, because I’m in the process of selling one.
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http://www.depreciator.com.auI concurr with Scott,
the price of that house I mentioned is true, but the market here fluctuates wildly. We haven’t seen such high gains here before and it has, with out a doubt been influenced by what has happened in the rest of the country!KP and I just wanted to ‘call-to-order’ the comments made by some-one who, in our eyes, hasn’t done their homework. It isn’t to say that that person doesn’t know what they are doing (I don’t know them); and the pashion of our language reflected the level of condescension perceived. I appologise for the language.
Cheers
C@34
Thanks all for the advices…
I’m sure all of us started this journey from somewhere and got/asked some help one way or another… otherwise we wouldn’t be in this forum…
Being “Poor in Time and Rich in Money” I can not really read ALL thousands of posts in this forum to find the answer to a specific question…
alvin, why don’t you “make” time to learn to use the search function… if you’re fair dinkum about investing, you’ll find the time to do the research.
Cheers
rI am getting increasingly concerned about people buying inferior properties just because they are producing positive cashflow. I would only go for properties with good potential for capital growth.
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Terry said “I am getting increasingly concerned about people buying inferior properties just because they are producing positive cashflow. “
I agree… obviously cash flow is important in terms of servicing the loan, but buying props out in woop woop doesn’t make sense to me… I like regional centres with minimum populations of 35,000 – 40,000 that are on the move… in time I’ll be looking at suburbs of Melbourne when yields catch up a bit.
Cheers
rDon’t try and put your own meaning into my words Calvin and kp.
Alvin is looking to make his money where the big money has already been made.
If you choose to live or invest in remote towns of a few hundred people that’s your choice. It makes no sense whatsoever to invest for the future in a remote area.
Look to Richmond’s comments for some better advice on direction.
There you go again Anubis,
Putting your foot in it again.
Narrow minded and deragotory comments about what you describe as small towns with a few 100 ppls.
At no point did ANYONE much less alvin mention small towns with population based in the 100’s.Thats your self imposed and limited imagination at work.
This is a huge country….with many regional and remote area, that support communities of all sorts, shapes and sizes.
The yield I mentioned are not typical, but created. A typical yield would be closer to 8.5 %
We only invest in NEW property. The difference between our cost and the market value is substantial, hence the reason why we do it.
I suggest taking a leaf out of Steve’s book,,,where I believe he uses words to the effect that the best deals are created.
All I am suggesting is that there is more to this than the simple assumption that investing out of CBD centres has to be on the basis of finding a “shitty” town, buying run down property purely for the sake of positive cashflow.
I for one DONT advocate investors do this , much less newbies.
But I will put forward what I consider to be a more balanced view in answer to the original question posed by alvin..Cheers,
KPTo some extent, I have to go along with KP because smaller towns do have a good supply of properties that are better valued than in the city and city suburbs. There are enough renters to keep rental properties at reasonable occupancy rates. I include rural properties, those little farms just outside these towns, as being part of the area I consider.
My research also shows a trend up in the demand for these small rural properties. It is possible for a retiree to sell a house in the city and buy one of these country properties and still have heaps to fund retirement.They are very hard to find because there are restrictions on land subdivision in the country ares. You are not able to break up the large farms and properties to sell off smaller blocks. It appears that a considerable number of retirees look to these small holdins for their future. Beachfront is too expensive!
These properties are very sought after in rural areas by local tenants. The country looks quiet and peaceful but a lot of things are happening.
In general, you will find cash flow positive or at least in a creative way by renovation and rent increase.Best Regards Marsden
So kp – tell me what your definition of a remote town would be then. Dubbo, Bathurst, Horsham Townsville, Mackay, Launceston, Devonport etc don’t qualify for me. Broken Hill does. BTW ALvin mentioned OUTBACK towns not REMOTE. Your average Outback town doesn’t have large populations.
If you are excited by an 8.5% yield in the boondocks I’m happy for you.
I’d suggest that taking a leaf out of Steve’s book is not something I would do. I have enjoyed aspects of his books and particularly the journey in number 1, but his methods don’t interest me.
kp – I have seen hundreds of people come here and post “Where are all the CF+ properties?” and they get a variety of answers – usually bland platitudes such as you used “Best deals made etc etc”, or go to Tassie, or go to NZ, or go bush.
My point (which was a long time coming I guess) is that too many people are snapping up property with eyes wide shut, buying out of fear rather than logic and they need to get a bit of realism rather than enigmatic responses.
FWIW, I have never seen Steve recommend buying in tiny towns solely based on yield, but so many people come on these boards screaming out to be told where the cf+ deals are, and get put on to places like Rosebery Tasmania… from what I recall he says the indicators he looks for as well as yield, are other development in terms of Bunnings, regional unis, hospitals etc… if the jobs/students are there, there is an accompanying tenant pool. If there are bugger all jobs in a town, or industries/employers are moving away, the tenant pool goes down, and your risks go up greatly in terms of vacancies. A property can have the best yield in the world, but it doesn’t yield anything if there are no tenants around to fill it. And sorry to disappoint some, but it takes a bloody lot of research finding out whether an area has the fundamentals to support your investment decision… there’s more to it than just looking at a few real estate websites. Sometimes you have to fork out for airfares etc to travel to the city/town itself to suss it out, rather than rely on someone else’s say-so. It’s your money, YOU have to do the work and YOU have to bear the responsibility for your decision’s failure or success. Don’t look for easy answers because there are none.
Some people hear the 11 second rule and then tune out… there’s a lot more to it than that, and a lot more research to decide if a property is a good investment than just looking for 10.4% yields.
These yields are not around any more in decently sized cities for RESIDENTIAL homes in towns IN AUSTRALIA (there you go Mini), period. They can however be created… the Mappers have proved that.
Horses for courses.
My two cents
r
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