G’day All
My girlfriend and I own and occupy a house in a WA country town worth about $230000 with a loan of $71000. We’ve been looking at buying an investment property in WA, possibly Perth for the last 18 months. We’ve been dragging our feet a bit asking ourselves – Where do we buy ? How much ? House or unit ? etc etc. Subsequently prices have gone through the roof !!!!!!
I recently read Steve’s 0 to 130 properties in 3.5 years and was excited to learn about positive cashflow, it made sense. I too couldn’t see the point of tying ourselves to a large mortgage, negative gearing just to get a tax break hoping for a large capital gain. I promptly got onto realestate.com.au and really found nothing of interest that would generate a positive income.
OK, here’s the question. How can I find positive cashflow property in WA when even in a small country town housing prices are minimum $100000 only pulling in about $110 rent per week ??
I just can’t see how positive cashflow philosophy can work in a climate of very high housing prices with non (or little) increase in the weekly rental income.
Am I missing something ?? Someone please help me !!!
Very hard in W.A. now, i live in Bunbury (highest popluation %growth city in Australia at the moment) 3 years ago houses were around 180-250K, rent $200, now houses are are around 380-500K with rent at hardly anymore around $225.
Your far better off looking for Capital growth than positive cash flow in WA.
The market is very different since steve went on his journey.
I’ve found mining or defense towns tend to pay better dividens than their metro counterparts. If you don’t mind travelling to see them naturally.
Good luck !
Hi tjmckay,
my partner and i both have bought positive cashflow property in WA. We have mainly bought in towns around Kalgoorlie.
The returns are good, but you do have to find one with a long lease and a house that is in great condition. The reason is, that even though the mining industry is booming, vacancies in these areas are high.
Best is to look out for properties with GEHA leases.
Lastly, you have to consider that houses in these areas won’t see much capital growth.
Hope that helps. BecIs it possible you may still be dragging your feet? How BADLY do you want to find a +CF property?
If it’s a case of ” oh it would be nice to have one” & your waiting for one to fall in your lap, my guess is that another 18months will go by fairly fast.
If I said to you I will give you 1 million dollars if you find a +cf property by the end of the month, do you think you could find one?
Set a specific measurable goal & make it a must not a “I’ll try”.I also live in Perth, am also in a similar postion as yourself except I have no job at present & I am flying to USA next month to buy a +CF property. I have set the goal & I MUST achieve it.
Is it risky? Yes
Could I fail? Possibly.
Will it cost me time & money? YesBut I could be one step closer to the fast track (financial independance).
Go for it if you really want it.
Sincerely,
SolomonIn Steve’s own words at the moment, the 11 second solution is a thing of the past. To get pos cash flow today requires finding a problem and turning into a solution.
Dale
Becandjo,
What is a GEHA lease?
Thanks
Robert[biggrin]
“You don’t have to be rich to invest in Property, but to be rich you have to invest in Property”
How can I find positive cashflow property in WA when even in a small country town housing prices are minimum $100000 only pulling in about $110 rent per week ??I just can’t see how positive cashflow philosophy can work in a climate of very high housing prices with non (or little) increase in the weekly rental income.
Am I missing something ??
No…..you are missing absolutely truckloads….not just “something”.
Got sent a brochure yesterday of a nice tidy unit for sale for $ 140K renting at $ 297 per week. 3 year lease. It is 13km from the Perth CBD. It’s a unit in a strata body with no land content – so we aren’t interested in it at all. Givvus a hoy if you want to take a gander.
18 months on the sidelines…..holy smoke….perhaps you are fossicking around in the wrong chestnut pile ??
GEHA is the Government Employee Housing Authority. They lease houses for their employees, usually on a long lease with an option. Their standards for what they will rent are usally pretty high so you have an indication that the house you are buying is in good condition (of course you still have to do you P&
.Just a comment on the timing: My partner and I have invested mainly in NSW/Hunter Valley and I wanted to buy a IP for myself (haven’t been able to prior as I was a student on casual income)- I first started looking for a reno property for 3 months and made at least 100 offers. I found about 3 but in the end none worked out. We then had no time to renovate anymore as we both went back into fulltime employement with no leave left.
So I decided to look for an IP in WA- i had heard of a few areas through a buyers agent but not looked into it myself. I drawled the internet and within a few days had found 4 properties that were +CF and leased for at leased 12mths. I spoke to a few RE agents and did my research on the area. After talking to a RE agent and telling him my requirement, I ended up buying none of the 4, but a GEHA leased property that the RE agent told me was coming back on the market after the finance on the deal had fallen through. That all happened within 2-3 weeks.
Morale of the story: do you research, spend time looking through the ads and speak to RE agents about what you need and ASK if they have anythiing else on the books. Shouldn’t take you more than 2 weeks to find enough to make offers on.Bec
I’m looking outside WA at the moment..whilst my WA IP’s are enjoying great CG..
looking for the best value or *bang* for my buck to coin a phrase.
Looking for Neutral Gearing..and also using structures to my advantage..
I once read an interesting story about riding the cycle around Australia…
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI’m also from WA and starting to think that I might have to branch out into other states a bit. Im sure there are opportunties in WA but the competition is high.
Its just means more research and probably a trip or 2 (or more).
Matt
Guess cash flow if your willing to invest in the USA is tremendous opportunity with good returns . From what I see of the Australia real estate is much like California and NY markets here in the states before the real estate crash.(To expensive to buy and no cash flow but appreciation was huge upside in yesterdays market)
just my two cents
Alex
Cashflow positive are still available in WA with pretty good entry level prices and in well established towns with good long term prospects. Rent returns ~15%. Just have to do things differently.
.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
