Forums / Property Investing / Help Needed! / Answers to “Where to Find CF+ Deals”

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Viewing 20 posts - 461 through 480 (of 529 total)
  • Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    I finally found one for you guys  see below link

    http://www.realestate.com.au/property-house-nsw-bourke-108599856

    $200 pw rent
    $105,000 asking price

    good luck : )

    TaylorChang | Finance Broker
    Email Me | Phone Me

    Home loan | Commercial loan | 0414 691 517

    Profile photo of GCLGCL
    Member
    @gcl
    Join Date: 2012
    Post Count: 3

    A few simple tips from someone who is professionally qualified to comment;
    1.Dont buy serviced apartments. They usually have onerous leases (especially around years 5-7) and often depreciate in value as the depreciation benefits diminish. They look like a residential product but they are not and are a complete nightmare for the uneducated investor. The initial return is a farce and inflated by the inclusion of a furniture package. Watch out for a massive drop upon market review of the rental.
    2. Properties that promise to be positively geared generally only exist in high risk areas ie. mining towns or areas formerly underpinned by tourism such as FNQ. If you are lucky enough to maintain good occupancy then yes they can be an investment that is positively geared but you run the risk of no tenant at all and then say goodbye to positive gearing, hence the high yields….and high risk.
    3. The best way to achieve positive gearing is buying a lower value property in a high rental demand area and then spend a few bob creating extra bedrooms. In lower value properties rental levels are primarily related to number of bedrooms, increase the number of bedrooms and you can dramatically increase your rental. If done right you can also add huge money to a properties overall value. I have done this many times and made fantastic money along the way. The hard part is finding the right property that you can add an extra bedroom cheaply (under $5,000) without ruining the properties floor plan. Formal dining areas in older properties just beg for a conversion to a bedroom.
    4. Positive gearing is great if you can achieve it but it is more often an elusive dream. Dont rely on the fact that you can achieve it and have a good plan B.

    Profile photo of Simonchua87Simonchua87
    Member
    @simonchua87
    Join Date: 2012
    Post Count: 2

    Hi,

    I am a newbie in property investment. I just wanna get some advice from some veterans out there regarding NRAS property.

    I am close to securing myself a land & package deal in Rockingham, WA.

    Profile photo of Ephraem1Ephraem1
    Member
    @ephraem1
    Join Date: 2012
    Post Count: 17

    Hi adambc and fellow property enthusiasts,

    have you ever considered a investment strategy called owner finance?
    It enables you to turn almost any property into positive cashflow…
    Cheers

    Profile photo of Giggleguts22Giggleguts22
    Member
    @giggleguts22
    Join Date: 2010
    Post Count: 11

    There was a comment made by a gentleman at conference to an NRAS representative  that some places that have these NRAS properties, the prices are over inflated (as in the property you are looking to buy has a higher pricetag than what it is worth).  In the end you have to do your own DD to figure out if what they are charging is the same as what you would expect to pay for the particular area you are looking.

    Profile photo of santhsanth
    Member
    @santh
    Join Date: 2012
    Post Count: 21

    Hi, I am looking at the new 1×1 apartments up in South Hedland that are on the market for $599,000. They are advertised as being able to rent for $1300 a month which is a yield of 11.1%

    I am obviously a little cautious and want to know why these deals aren't being snapped up by investors when it sounds like an easy way to get a CF+ property.

    Any insight or opinions would be appreciated.

    Regards

    Profile photo of DippaDippa
    Member
    @dippa
    Join Date: 2012
    Post Count: 15

    Hi Santh, do you mean $1300 a week, I really hope so.

    Profile photo of santhsanth
    Member
    @santh
    Join Date: 2012
    Post Count: 21

    Yeah per week, sorry.

    Profile photo of M.InvestigatorM.Investigator
    Member
    @m.investigator
    Join Date: 2012
    Post Count: 134

    Have you checked the outgoings? Such as strata fees, other fees? Maybe they are high too, and eat up all the income.

    Also, at $599,000 that's a rather expensive CF+ property. The stamp duty on that would also be huge. There are much more positive cashflow properties that are cheaper at half the price of that or even less.. That's perhaps the reason why. You should also do your due diligence to double check that the property is in good condition though.

    If the numbers work, then it is probably a goer.

    Profile photo of priscillac22priscillac22
    Member
    @priscillac22
    Join Date: 2004
    Post Count: 5

    i hope you are right i was looking in tassy for affordable properties to buy

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    Simonchua87 wrote:
    Hi, I am a newbie in property investment. I just wanna get some advice from some veterans out there regarding NRAS property. I am close to securing myself a land & package deal in Rockingham, WA.

    Hi Simon,

    Not sure where you are up to with your Rockingham NRAS – have seen a few NRAS properties advertised in the area which I consider to be over-priced. Admittedly the ones I have seen are more the unit style – but the 'beware and do your research' message still applies. Make sure you are getting the property at the right price.

    Sometimes in their haste to get the $10K/annum tax rebate investors forget the basics.

    Profile photo of ShedinShedin
    Member
    @shedin
    Join Date: 2012
    Post Count: 14

    When this post was first started it was advised to look for properties around the $100K up, that was in 2006…

    Who might like to update please to what they expect we should be able to look for as a reasonable buying price equivalent in 2012/2013?

    Thank you

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    santh wrote:
    Hi, I am looking at the new 1×1 apartments up in South Hedland that are on the market for $599,000. They are advertised as being able to rent for $1300 a month which is a yield of 11.1%

    I am obviously a little cautious and want to know why these deals aren't being snapped up by investors when it sounds like an easy way to get a CF+ property.

    Any insight or opinions would be appreciated.

    Regards

    Hi Santh,

    You'll need to do lots of research on these the Hedland market has shifted a lot in recent months. Council has major rezoning plans on the drawing board.

    You are better off in Perth IMO.

    Profile photo of Shiny_Suit_ManShiny_Suit_Man
    Participant
    @shiny_suit_man
    Join Date: 2012
    Post Count: 54

     Hi Shedin, my first suggestion would be to pickup the latest copy of Australian Property Investor Magazine from your newsagent.  They have listed a number of areas in the latest issue, where property is still available for around the +/- 200k mark which with due diligence could result in great deals.

    Profile photo of KevinGrunertKevinGrunert
    Member
    @kevingrunert
    Join Date: 2011
    Post Count: 32

    Hey Adam,

    Some great tips there. One other great one that you didn't touch on is to review the RPData Buy vs Rent report. You can get a free copy of this via email from the following page: http://www.myrp.com.au/cbabuyorrent

    Armed with that "short list", you should be able to begin searching for cashflow positive properties a lot quicker and easier. 

    Kevin.

    Profile photo of Sebastian61Sebastian61
    Member
    @sebastian61
    Join Date: 2013
    Post Count: 1

    The problem with looking for cash flow positive properties is that they can often be in mining towns or other high risk areas. A few years ago I got into what looked like a great deal in WA and ended up getting burned because the market dropped. For my next property I used Folio Invest who found me a property purely on fundamentals and it's gone up around 15% in the last 18 months. Just make sure you're not buying in an area that is supported by 1 single industry, like a mining town. The miners are losing profits left right and centre, so make sure you're buying a solid asset. Don't risk an asset depreciating for a bit of cash flow.

    Profile photo of Adrian 00Adrian 00
    Participant
    @adrian-00
    Join Date: 2013
    Post Count: 10

    @sebastian61

    I second your thoughts. It seems many people are diving into mining towns with one single employer. What happens if the mind lays off staff, or worse, closes shop? You've got an expensive flop on your hands

    These are some of the highest risk properties around. Know the employment conditions in the area…

    Profile photo of wilkie0611wilkie0611
    Member
    @wilkie0611
    Join Date: 2013
    Post Count: 33

    hey cazza69 i was just wondering if you could send me a copy of that link, cheers ben

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681
    wilkie0611 wrote:
    hey cazza69 i was just wondering if you could send me a copy of that link, cheers ben

    Check the dates on the posts. Cazza hasn't been around since 07

    Profile photo of lsta5487lsta5487
    Participant
    @lsta5487
    Join Date: 2013
    Post Count: 4

    i think Bradley might be renting out the rooms separately eg 6 rooms x $110-120 /wk/room ;)

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