I'm reading a lot of stuff and it's all getting a little confusing.
I am just starting so this is all so exciting and scary at the
same time.I have refinaced my house to use the equity to look at purchasing
2, two bedroom units for around 185 to 195 thousand, with
both units returning 150 per week rent.I just want to know if this would be worth while purchase or not.
These units are in the Latrobe Valley.
Thanks John
Is that $185,000-195,000 EACH or Separately???
If you are buyng both units for that price and getting $300 a week rent it probably won't be positively geared, but it won't be too far off.
Does the area have good capital growth?
Do you want to negatively gear? That is, do you want to have to pay extra out of your pocket towards these loans in order to py for them, or did you want them to pay for themselves?
Do you have a large income or a large tax issue? If you do, you can offset your negatively geared losses against your tax.
Are the houses new or newish? (Built since 1987) Are they eligble for depreciation benefits that can be claimed against your tax?The answers to some of those questions may help your decision as to whether these properties are right for your situation.
Kelly
Yes the post is a little confusing as to whether the price is for each individual or for both
G’day!
I am assuming that it is $190k (ish) for the pair, as individually they would need to have gold taps and diamond roofs to command that sort of price in the Valley.
With all investing, you need to go back to the question of your motive for investing. Since these will be neutral or slightly -ve cashflow, you will be in it for growth.
Accordingly, as part of your plan, you need to identify how and why these units will grow. Make sure you read my latest book for ideas here.
Cheaper is not necessarily better.
If you could outline more info about where you are confused then we could help more.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
My goal is to retire from the work force Steve.
I am looking to generate enough income to replace
mine and fund the lifestyle I'd like to have.I have been reading a lot of articles, some promote cashflow
others promote capital gains grow, where you refinance the growth
to purchase more property's, this is where it gets confusing,
would a property that might have a little neg gearing
be worth while to purchase as the property grows in capital gain, to
refinance maybe bringing it into positive cashflow or breaking even.The Units are 2 seperate units these units are in Traralgon.
Thanks John O'Brien
Sooooooo is the $195 is for both units???? Seemed a simple enough question….
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