Hi, this is my first posting, be kind.
I recently read Steve’s books and i am chaging my investment philosophy.Problem, found what I beleive could be a good positive cash flow property, but @ $500k the 20% deposit would take up all of my savings. Should I start smaller?
Regards
Novice GuruHi Novice,
It would be interesting to see your figures on the $500K deal. Why not run them past the forum (without giving away the area/town or anything)… and see what others think…
I’d definitely start A LOT SMALLER…
It’s hard to comment too much when you don’t explain the deal in more detail, ie. is it commercial, annual rent, etc..
Good luck,
Del
There are a number of units in a row, with some work to be done ie painting, landscaping etc, the retun is currently 12% with 90% occupancy.
Thanks
Novice GuruYou have got my attention.
How many units?
What do you mean 90% occupancy? Is this ia hotel style investment or residential units?
You say return of 12% is that gross? IE on a 500K investment is the total rent $60k? Is that for the 90% occupancy?Feed us more more more.
hahaha.
Byronent
Adelaide SAHi Novice Guru,
Why not get a few like minded people together to share the money side and maybe give you that confidence?
I’m one for taking calculated risks if I have the available funds. Pros and Cons of all investments need to looked at carefully especailly the worst case scenario.
Not much advise there, I know. Good luck to you though.
Regards
Princie.PRINCIE
NoviceGuru,
I am also new to this business. I am looking for small investments where I can use small deposits (<$10,000) per property. If I had $100K now, like youself I would still prefer to go for more of the smaller type. There may be better capital gains in the long run and they are smaller loans to habdle should one go empty for a few months.
I am lucky in having a good salary at the moment, and can put together small deposits very quickly. So thats my plan..START SMALL and work my way up.Grant1197
Hi there,
Number of units may not be in strata title so you will have problems in selling in case you want to sell in the future. You still didn’t give us enough information. number of property in different twon is better than having all money in one town.
Good luck!
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]
MSN ID: amitash, Yahoo Id: bornguruNZ loan pre approval from OZ in 48 hours,Low Doc from 6.85%,Investment loan 95%+
Novice Guru,
Don’t automatically dismiss this deal as too big. Do a bit more research especially into how much you can borrow, tenancy history, cost of renos, rents in area for similar housing.
You can then make an informed choice to proceed, to proceed with partners or not to proceed
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