have found a property in Dinmore, QLD, renovated on 2 titles for $200 and renting for $190 (apparently under market). The plan would then for next property to be +ve to counteract the loss from the first. Aim to use moderate growth in areas to be able to provide future equity for purchases after first 3 or 4.
10 year’ish end goal – to have $3M property portfolio that will double next growth, sell 30% of properties to pay off remaining and then have the rents as income for rest of life. Is this a feasible way to go.
Any thoughts would be appreciated. Any on the area chosen for first would be appreciated as well.
Please tell me its north of the highway and not in the southern part of Dinmore?? That is really run down and you need to be careful. When that market was $70k for a 3 bedroom we looked at 2 of them in Joseph street.
Wife wouldnt let me get out of the car!!!! Houses were boarded up some had been torched and car wrecks aplenty were there too, some mowed around so they had been there a while.
I would suggest maybe getting the cashflow positive one first, and not the negative one would help with servicability for the next one.
However, having said this, anything in the area will get cap gains due to the job creation in the area, and the influx of warm bodies at a rate of 1200 a week into SEQ.
So if you need the equity generater first and can cover the cash shortfall this may still be ok. Just not my first option.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Originally posted by richter:10 year’ish end goal – to have $3M property portfolio that will double next growth, sell 30% of properties to pay off remaining and then have the rents as income for rest of life. Is this a feasible way to go.
A comment on the strategy – very Jan Somers. Not a problem just check the remaining rents will be sufficient for your preferred lifestyle.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958i’ve heard the name Jan Somers but haven’t read her books or attended her seminars (if she has any). Sounds like something I should do then.
in regard to the location It appears to be between 2 highways. I ordered the residex budget price growth guide for the top 50 postcodes in Brisbane area – there doesn’t appear to be any mention of Dinmore/ Ipswich area in the top growth areas as predicted by residex in the next 5 to 8 years. This seem contradictory to articles I’ve read about this area. Any comments appreciated?
A lot of research about whether an area will grow is common sense. I like to look at things like crime rates, the type of dwellings being constructed (ie, if lots of units, I stay away), what industries are located in the area, employment rates, how many private schools and public schools exist, housing commission levels, restaurants, nightclubs, attractions and, most importantly, how many major banks and supermarkets have locations in the area.
There are also many other factors I look at but I do not depend on any single report. Historical data is never an indication of future potential although it is often a good guide.
Just because an area has not been growing very fast or in the top 50 does not mean it will not grow quicker in the next period. It might be an attractive area because it has not grown too quickly and it is still affordable.
Did you read this…
Riverview and Dinmore
Riverview and Dinmore are 22km south-west of the centre of Brisbane and 17km east of the centre of Ipswich. The adjoining suburbs are located at the junction of two of Queensland’s most important rivers, the Brisbane and the Bremer.
Australian Bureau of Statistics 2001 Census figures show the Riverview and Dinmore renewal areas have a population of 4,332 with 1,070 families. Just over one quarter (26.4%) are aged under 15 and 22.3% were born overseas. The Indigenous population is 6.3% and 9% speak Samoan.
When Community Renewal entered Riverview and Dinmore in December 1998, an integrated Community Action Plan had already been developed for Riverview. Although, Dinmore was not specifically identified in the plan, the document covered issues of concern to the Dinmore community. The integrated 1995 plan was reviewed and updated in 1999 taking into consideration the objectives of Community Renewal.
The key themes in the plan include training and employment; safety and security; services and facilities; transport; reducing social fragmentation and conflict; community leadership and participation; facilities maintenance; and environmental protection.
Riverview and Dinmore had a total allocation of $5.6 million in Community Renewal funding to 30 June 2004.
Community Renewal activities were completed in Riverview and Dinmore in 2004.
________________________________There is also a huge meat processing plant there and it is close enough to Brisbane to see growth from city expansion but I do not think the current population would support strong rental returns.
Try some of the links at this site for more information…
http://www.mortgagepackaging.com.au/index_files/hot_links.htm
Robert Bou-Hamdan
Mortgage AdviserYou might get good information on that area by going to the areas city council website? I’ve noticed some such sites provide plenty of information, while others don’t. Might be worth a try.
Regards,
~Marvin~Need a second income? Why limit your earning potential?
Wealth is a choice. You can make that choice now!
$500-$1500 per month P/T, $2000+++ per month F/T
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