Hi, everyone I am new to the forums and also to IP.
My wife and I bought a house for $65000 three years ago,( she was 6 months pregnant at the time) spent about 10K and its now worth about $180k. I reckon if we spend another 10 grand we can get it up to $220-240K. happy about that.
Anyway we have a mortgage of $57000. So after reading these forums I see everyone talking about CF+ properties, but where we live(Snowy Mountains NSW) I cant find anything close
Am I just not looking hard enoough?
Any help would be gratefully accepted
RobinshaztazMember@shaztazJoin Date: 2004Post Count: 113
I bought one 3 yrs ago too with similar figures to yours [biggrin] makes me happy too!
CF+ are now as scarce as proverbial hens teeth, but some would say not impossible to find with a bit of imagination.
You may need to put in some low offers on suitable properties. Before you put in an offer think about how you can increase the value of the property… painting, new carpet, fences, bathroom, kitchen makeover (new cupboard door/benchtops), garden shed, air-con/heating.
For every $1 you spend, you should be able to increase the value of the property by $4. But my advice would be to keep it simple, keep costs down, try to do most of the work yourself if you are a handyperson.
By doing the above you build instant equity, especially buying below market value. Thats when you make your money – when you buy, not when you sell.
By improving the property at little cost, you can add substantially to the amount of rent you can charge per week.
Its all a matter of doing your homework, but it can work. Alternatively you could just sit it out, it’s only a matter of time before the cycle comes back to CF+ again. 3 yrs, 5yrs, 10 yrs, who knows [blush2]
Hope this helps a bit.
looks like I’ve got a lot to learn…….quickly!!!!!!!!!
yes roy our house is CF+ rented at the moment but we will be moving back to australia in november and living in it
we were going to buy a IP in the same town and put in an extra $100-150 a week we can afford it, but after reading some of these forums it doesn’t make sense if we can get something CF+ or close.
like sharon says perhaps we need to look at increasing the equity for as little as possible
thanks robinDon NicolussiParticipant@donJoin Date: 2005Post Count: 1,086
Where are you living now if you don’t mind me asking.
Perhaps there are some investments right under your nose that fit the bill for Cash Flow.
[email protected] – Experienced investors living in NZ who can find properties to meet your needs! Email us to receive details of upcoming deals.
Project management also available – finding solutions for problem properties! We can manage your renovation project for you.
My intial thoughts if you want to move into the CF+ propertyas it’s low debt property, thats fine.. And yes I agree with you re looking at another investment not in the same town but anywhere thats gonna give you growth and not cost you much out of your pocket each week.. $50 odd perhaps..
Have you considered interstate, QLD or WA??
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
We are currently living in Ireland, lovely spot great views across the bay at the mountains.
We are moving back to oz early November, as far as the prices of property here goes they are dear and just gone through a boom (still in it), but It looks to be very close to peaking. I think.
So maybe were not looking hard enough. interest rates are 3% though. a lot of new houses are going up and being either built for rentals or first home owners.
Also we have thought about interstate but are a little worried …………
Finding a good property manager(I know the locals)
Renovation costs(I can do most things but distance would make it hard & expensive)
Are these issues to worry about?
If I cant find anything that would only cost me $50 or so a week in my local area when i return then I better start looking
Do i just start e-mailing interstate realestate agents or somhow find a ‘birddog’