- donWMember@donwJoin Date: 2009Post Count: 21hawthorn wrote:I 100% agree with fatboy i'm an investor from canberra i own 3 properties in canberra and 1 in nsw i went to morwell 2 weeks a go as its an area i've been studying for about 3 months i was amazed at how strongly positive cash flow property was there so impressed that i bought 3 properties with my brother it has cost us $348,000 total for all 3 properties and combined rent of $500 with long term tennants 2 of which wanted to extend for a further 2 years which means that even if we borrowed 100% plus property management fees and rates etc we will still make $260 each per year. But the main reason i purchased there is because it is listed as a real boom area with a lot of infastructure coming to the area and the new road links to Melbourne its an easy hour and 15mins drive along the highway on the new stretch of road. Housing is very affordable and not only is it a boom area but the property pays for itself without contributing a cent. I love property and research it everyday and from the research i've done there is no better place in australia to invest. My favourite saying is BE GREEDY WHEN PEOPLE ARE FEARFULL AND FEARFULL WHEN PEOPLE ARE GREEDY as we seem to be a country of followers not leaders don't miss the boat cause when everyone starts jumping on board your returns won't be as strong as you will have more competition which pushes prices up which pushes interest rates up etc there is no better time than now to invest in property.
I'm from SA and I'm looking in to opportunities to invest in positive cash flow properties in VIC. I noticed Morwell is considered to be a "cheaper to buy than rent" places by a report made available by CBA, and also noticed your (and fatboy's) posts in this site. Based on your knowledge and experience, what do you feel about Morwell as a place to invest under current market conditions? would you still consider it as a better place for positivecashflow properties?
Donfinancial_freedomMember@financial_freedomJoin Date: 2009Post Count: 18
I have just been looking at prices in Morwell, they seem very reasonable and various magazines such as "Your Investment Property" have statistics that show it has an annual growth of about 10% with a rental return of 6%. I think this is a great starting point for those who have not begun their investment game yet.
I am not an experienced investor and am just trying to learn as much as i can. I do feel however, the more i am waiting the more time i am losing.
Any comments from experienced investors would be highly appreciated. If anyone can list a few suburbs that they think have stable growth with a lower entry point would be great.
LinadonWMember@donwJoin Date: 2009Post Count: 21
I hope this report will be of some assistance got you.. made available by CBA. http://www.commbank.com.au/personal/home-loans/Better_to_buy_than_rent_report_CBA_FINAL.PDF
Cheersfinancial_freedomMember@financial_freedomJoin Date: 2009Post Count: 18
Will have a read of it.
LinaHandyAndy888Member@handyandy888Join Date: 2005Post Count: 160
As Steve has pointed out in his latest update, there are many many opportunities to find CF+ AT THE MOMENT. For how long? Who knows, but heed the caution…..a CF+ property at such low rates will be CF- very quickly as the rates rise….kr1982Member@kr1982Join Date: 2009Post Count: 5
Hey DonW Is that document a regular publication or a one off?? If it is a regular thing it may be quiet usefull to many in the future
<br /:)” title=”>:)” class=”bbcode_smiley” />unwiredMember@unwiredJoin Date: 2009Post Count: 1
can anyone give me some advice
where and how can i find the positive cash flow properties
please!symon_natalieMember@symon_natalieJoin Date: 2009Post Count: 1
Michael 888Participant@michael-888Join Date: 2005Post Count: 260
- possitive cashflow properties are all over this country. Like most members are saying you need to get out in the real world and look for the bargains for yourself. Negative comments about property makes me think that you people have already given up. You need to expand your mind and think outside the box.
- Never give up! Already beleive you have a possitive property. Just changing your frame of mind will unlock huge potencial to see through the nasty stuff and turn it into gold.
- One peice of advise I can promise will work for you is: If there is a property that your interested in but the figures dont match up, THINK what you can do to turn it around!
- I use this stratergy when it comes to increasing my portfolio. If I dont have enough money to close the deal I dont just simply give up on it! I think of ways so I can afford it.
- Expand on your mind and the world is yours!
Great maiden post symon_natalie. Couldn't agree more. Welcome to the forum.
Unwired, I'm assuming you've read this entire thread thru and more than once. If not, do so.
With current interest rates and rent demand in most places, these deals are all around. Do not think that you will be spoon fed the properties and be cautious of those promising to sell you CF + with a vested interest of commision off your purchase. Not all are shonky, however caveat emptor. Do your homework and due diligence.howardcmMember@howardcmJoin Date: 2008Post Count: 65unwired wrote:hi
can anyone give me some advice
where and how can i find the positive cash flow properties
Ground floor 1 bed apartment in Vic Park, Perth. Deceased Estate, Council Sale. 5 mins to CBD, 5 min walk to cafe strip, 5 mins to Curtain Uni, 10 min walk to Vic Park Shopping Centre, 5 min walk to train line, plenty of redevlopment including the introduction of the free "CBD Cat Service" (free busses) running from Vic Park to the CBD in 12 months time
Price – From $165,000
Rented until Sep 2009 for $285 week
Strata fees $175 a qtr
Plent of room for Renos to increase weekly rent. Original kitchen, bath, flooring and small outdoor patio. Not the most attractive complex but a nice street.
If I hadnt brought a house 3 months ago I would be snapping this upspudwayMember@spudwayJoin Date: 2009Post Count: 39
we need help we are a family mom dad and 5 kids we have 50k deposit and have put a deposit on a property ,,sale price of 110k …we are on a pension and get 1915.96 per f/night ..we need 60k ….we dont qualify for bank finance ….we can pay 350 per week …..we have been renting at 350 per week for many years ….the property we are trying to buy is able to generate at least 300 per week …we would pay any monies we make straight of the loan ..we own a toyota parado 2004 grande ..and a 1996 musso combined value at 50k ..we would sell when we got over to our new place in wa …we dont wont to sell them in a fire sale as we wouldnt get true value …monies for car sales would be paid of loan …we have our freinds comming with us and thay can pay 200 p/week which makes weekly paments at a min of 550 per week ..we are eligable for the 14k first home buyers grant ..that will be paid of the loan asap …we also have a 1988 isusu furnature truck that is worth at least 10k we will sell that as soon as we move over to wa ..we dont wont to sell till then as we would then have to pay for a removalist and thay quoted 8.5k ….pleas help ///////ph paul 0408819344 …ps we are able to pay 15% p/alevi5Member@levi5Join Date: 2009Post Count: 5
Does anyone have opinions on purchasing a bedsitter/studio and building a partition and or complete enclosure with a door – to convert it into a proper one-bedroom flat?
I’ve seen on this site arguments against purchasing bedsitters because they’re not popular and people don’t stay in them for long so they can be hard to rent out.
But what if you converted one into a one-bedroom in a good inner Melbourne suburb?Don69Member@don69Join Date: 2008Post Count: 11
Haven't been very active lately but am looking forward to starting a new chapter. I'll be doing this by selling one of my properties in the great North West of Western Australia in a town called Karratha.I thought I'd post it here first before I let the general public in and see how it goes. I'll be asking between $770 and $800k for the property. It's a 4 bedroom, 1.5 bathrooms, pool, office, ample parking and it sits on a 800sqm + block., It's tenented at the moment and it's returning over $6000 per calender month. So if your looking to buy in the biggest resourses area in the Nation have a think about it and post a comment.
It's good to be back on board.
Donl_b29265Participant@l_b29265Join Date: 2003Post Count: 26
Don that sounds like a great deal, BUT i have heard that there are massive new housing estates planned to increase the existing housing stock which is currently in short supply around Karratha. There is a new development which is currently in the planning stage, but has a timeline of completion for a few years only, once construction commences. Would this new development mean that housing prices will drop considerably? Also, is this why there is such an enormous amount of houses/units for sale in this area, which seem to have massively overinflated prices due to the surrounding industry renting them out? I am not sure, but think there's a good possibility that housing prices may plummet dramatically once the new housing developments go ahead, and there is a large amount of new housing available for purchase? I was tossing up investing there at one stage myself. Anyone else got any ideas/thoughts on it?Don69Member@don69Join Date: 2008Post Count: 11
Your right in the sense that they may be building new estates as they have been doing over the past 15 to 20 years and it hasn't had a bad effect so far. I lived in Karratha for 37 years and I know the new estates have blocks between 300 and 550sqm and once built you can basicly step from 1 rooftop to another. Thats no joke. You hear that new contracts are signed all the time re gas etc. but what you don't always hear is that they have to be able to supply an amount be it gas for no less than a 25 year period. There is still alot of money to be made up there in real estate. If you look at the numbers Karratha still gets good return on property where alot of other places have fallen.
Hope to hear more.
CHEERSKiwi Property GuyMember@kiwi-property-guyJoin Date: 2009Post Count: 82
We have passed many NZ Cash flow positive properties onto Aussie based investors over the years.
We have just sent out a newsletter to our property investor database discussing why it is now more important than ever to get educated before investing/investing further.picklesamParticipant@picklesamJoin Date: 2004Post Count: 55
Prob not +C, I live in emerald QLD, and i think its a good time to buy, a 3/4 bedroom brand new house is $345k, 2 years ago they were going for $400k so the market's at the bottom at the moment. Rentals are about $500/week. Nice houses are renting for $600+/w.hewlett25Member@hewlett25Join Date: 2009Post Count: 15
there is a company offering brand new homes in tassie for $450k with govt guarantee for 10 years returns $700 per week.jazamiteMember@jazamiteJoin Date: 2008Post Count: 34Kiwi Property GuyMember@kiwi-property-guyJoin Date: 2009Post Count: 82hewlett25 wrote:
there is a company offering brand new homes in tassie for $450k with govt guarantee for 10 years returns $700 per week.
With an 8% gross yield (which would be around 6% net after expenses are deducted) I would hardly call that a positive cashflow property!
Ok I am well aware you can borrow short term money for less than 6% at the moment, but what happens when you have to start paying 7-8% or more not far into the future?
This is a trap that many people fall into all the time, it can be bad enough finding the cash to top up one property (that you bought thinking it was positive cashflow) but you can only imagine what happens if you have bought several like this – You are a goner!
This is exactly what happened to many new investors, over the last few years when they bought properties with net yields only slightly above the then very low interest rates. As soon as their floating rate moved up, or low fixed rate expired they were in a position of not being able to service their mortgages.
At this stage in the economic climate I recommend when doing your analysis (prior to purchase) you allow a contingency for interest rates increasing at least 1-2%, if the deal still works for you and you are happy with the cashflow position, or lack of it, then by all means go ahead and purchase – But please make sure you do some forecasting before going ahead.
If you call that a CF+ property, I can now see why so many Aussies have been purchasing REAL positive cash flow properties here in New Zealand, with much higher yields