- shanshanParticipant@shanshanJoin Date: 2007Post 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?
ThanksraddlesMember@raddlesJoin Date: 2006Post Count: 187
Hi therethe 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 aroundthanksmillionsMember@millionsJoin Date: 2005Post 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.PursefattenerMember@pursefattenerJoin Date: 2004Post 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 !vyvyenParticipant@vyvyenJoin Date: 2004Post 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.