Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of shanshanshanshan
    Participant
    @shanshan
    Join Date: 2007
    Post Count: 27

    Hi all, What are the pros and cons about having an IP in a rough area. I mean it will be unfurnished, it will be insured, there will be a bond. So if anything does happen it I'm sure it will be covered by insurance. Also I've noticed in these areas the rent is usually higher than in other areas. I guess this is offset by the lower capital growth.

    Does anyone have any experience in this area? From an investment point of view, I'm thinking it will be a good investment, Is there anything I am missing? Or anything extra I need to take into consideration?

    Thanks

    Profile photo of raddlesraddles
    Member
    @raddles
    Join Date: 2006
    Post Count: 187

    Hi there

    the main thing in such areas is to have a good property manager –
    I note that we purchased a property in an area which used to have a bad reputation – but due to excellent property management, the area has turned around
    thanks
    Profile photo of millionsmillions
    Member
    @millions
    Join Date: 2005
    Post Count: 355

    Be fussy with who you choose to occupy your property.  Let tenant have a dog (to deter intruders and keep good tenant happy).  Install security screens, doors and security lights.  Good Luck.

    Profile photo of PursefattenerPursefattener
    Member
    @pursefattener
    Join Date: 2004
    Post Count: 217

    Some areas i have looked at such as parts of Rotorua and wanganui in NZ property managers don't want to know about .

    Also in the US according to Westan there are large areas that property managers wouldn't go even with an armed escort !

    Profile photo of vyvyenvyvyen
    Participant
    @vyvyen
    Join Date: 2004
    Post Count: 21

    Everyone has their own ideas about investing but I personally would not touch a rough area.  I do not want the stress of the house being destroyed or the rent not being paid, saying that, the house can be destroyed and the rent not paid in any area.  I personally go for capital growth in coastal areas on large blocks.  Thats what works for me, I would rather have 2 quality properties than 10 rough area properties, but each to their own.  Good luck in your investing and do what works for you.

    Cheers

    Vyvyen

Viewing 5 posts - 1 through 5 (of 5 total)

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