I have just read Steve Mcknight's book 0-130 properties in 3.5years. I have 1 property that is positively geared and aslo in a family property consortium. I want to buy our second independent property (positive geared); where are they? I have been researching for the last few weeks. After much time spent I found my self on a web site that locates and sells positive geared properties. They ask for a $500 anual membership fee and a 2% commission on the selling price. The $500 is taken off your first property commission if purchased within the first year. They also provide many reports on the property and garantee the rent that provides the ROI %
Do you have any advise for using these companies?
Note: I live in the NT (remote) and don't have access to looking through properties personally!
Please Help!
Most if not all positive geared property is located in one house country towns. As the market begins to heat up these areas may fall. As an example Ballaret in Victoria, hardly a one horse country town with a population of 80,000 has a lot of properties on the market. The volume of sales is way down.
The bestopportunities for positive cashfloe remain in the United States. The market is flat there. You can buy properties in main cities that will cashflow.
Nigel Kibel | Property Know How
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Hey Hannah. THis topic has been covered frequently – most agree with you, and times have changed since that book was written. As far as the groups you mention, I have had no personal experience with them, but the ones I have seen similar show highly unrealistic rent returns on their so called 'cash flow' properties. (eg. Town with population of 12,000, price $450,000, rental per week $750….yeah right….. Buyer Beware is still highly relevant though! All the best…..and welcome to the forum.
I agree; the problem with a lot of these companies that source properties is they find you one, but it may be in a place where getting tenants if one leaves may be very difficult, few or no local property managers etc.
Do your own due diligence and do a thorough search on the areas they select for you before hand.
This always makes me think that if I am going to do the research on areas of the properties they recommend, then why would I pay them to do it and still get a dud?
May as well save the dollars and do the work yourself. That way you really know what you are buying.
I remember seeing a place for sale once on r/e.com.au in a remote area. It was cfp, but when I dug deeper I found there were lots of tenant problems, no local management and high vacancy rates.
I saw the same property advertised for sale in Australian Property Investor Magazine in an ad for a website for cfp properties about 4 months later, at the same price, but with a $5k finder's fee attached. OOPS!I agree with what Marc wrote.
I think there are better options out there.
I could tell you a few CF+ off hand (Bowen Basin in QLD: Dysart, Blakwater, Moranbah, for example). Do a search on realestate.com on those areas and many will come up. Great yields! I'm sure many others could offer suggestions. The problem is that most are in mining towns and I, for one, wouldn't gamble on them (many others have).
I'd suggest looking at properties that have a history of good capital growth. Generaly speaking, these are in the main cities.
2% is a lot of money for what buyer's agents do. I considered it seriously. I'd suggest doing the research yourself. Some offer a flat fee of $8000, for example, and a lot are around that figure (give or take).
Let's say you spend $1000 on plane tickets to the area you're interested in, $1000 on accommodation, $1000 on expenses and $1000 on a nice little present for yourself you will still be $4000 in front!
Worth considering…
Cheers,
Mark
Nigel Kibel wrote:The bestopportunities for positive cashfloe remain in the United States. The market is flat there. You can buy properties in main cities that will cashflow.You prepared to clarify two points?
1) "The market is flat there." Have the NAR (National Association of Realtors) recently predicted that the housing market as a whole will fall this year for the first time since the Great Depression? Did S&P just conduct a massive downward revaluation in sub-prime securitised bonds based on their expectation of somewhere around 8% decline in prices?2) "Properties in main cities that will cashflow". Just how main? You mean large cities with significant economic problems? Or say, Las Vegas, New York, etc?
I have some on the outskirts of rockhampton qld 1 not to far from brisbane cbd and one in aldershot all are positively geared all I did was use realestate.com.au seacrhed and searched I also bought a couple on the outskirts of rocky private sales low balled the ones on realestate.com.au and got em not all areas are one horse towns rocky is quite a large regional city so is maryborough
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