Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of AlaisterAlaister
    Participant
    @alaister
    Join Date: 2008
    Post Count: 8

    Anyone purchased any investment properties in Dysart QLD. Looking for some positive cashflow. What are your thoughts or opinions?

    Thanks

    Profile photo of SontiSonti
    Member
    @sonti
    Join Date: 2009
    Post Count: 7

    Why Dysart in particular??? I have a number of properties in other areas in QLD if it is postive cashflow you are after. I could email the details to you if you give me your email address.

    Cheers!

    Profile photo of QGMQGM
    Member
    @qgm
    Join Date: 2009
    Post Count: 25

    Hi Alister,

    I'm always wary of just looking at the cash flow a property generates. 

    I much prefer to invest in areas that have a wider macro-economic appeal e.g Capital cities/major regional centres, rather than an area that is predominantly supported by one or two industries.  If the industry slows down or shuts down what value then for your property and what about the rent?

    I also believe that you need to have an exit strategy that is stacked in your favour if you have to sell i.e. easy to dispose of without too much anguish.  I believe that mining areas don't provide this.  

    Be careful of becoming emotional because of the cash flow – it's capital growth you need to focus on to help increase wealth for the long term and that's why I believe major centres provide more security.

    You rarely go wrong when you invest close to schools, shopping centres, employment, transport and infrastructure.

    Good luck with whatever you decide.

      

    Profile photo of Michael 888Michael 888
    Participant
    @michael-888
    Join Date: 2005
    Post Count: 260
    Profile photo of kazimackkazimack
    Member
    @kazimack
    Join Date: 2009
    Post Count: 5

    Hi Sonti,

    I am just starting out & I also looking at dysart as rental yield 9.4%.  I would be interested in the areas of positive cash flow in qld. I am on the sunny coast.

    Kazimack

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Never purchased there myself but have financed a couple of deals for clients recently and the valuation reports came back fine.

    Depending on the LVR will determine the number of lenders and in particular the LVR the mortgage insurers will go to (think you will pushing a 95% lvr at present on a standalone security there).

    Other than that yields appear to be holding up well and appears to be no shortage of tenants.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of BluegrassBluegrass
    Participant
    @bluegrass
    Join Date: 2009
    Post Count: 73

    Hi Alaster
    Any of the mining towns are going to be OK.
    Check what 9% rental return will do to your taxable income before you go running off and buying this type of product.
    I sell negative geared cash positive property in the Bowen and Surat basins, and I can tell you that sometimes the return on the investment can hurt rather than help.
    If the yield is high make sure the product has a lot of tax deductions. These generally only come from new property.
    Lets use a property that you purchased for $510,000 and assume that you are a single investor earning $75,000 per year.
    Taxable income – $75,000
    Rental income – $52, 624 or 9.04% yield
    New total income – $127,624
    Rental deductions – $51,246
    New taxable income – $76,378
    Present tax – $17,625
    New tax – $18,059

    You can see from this that you have actually increased the amount of tax you have to pay even though there is tax deductions in the home.
    You also stand to gain very little in capital growth.

    Better areas of growth in the mining sector would be Chinchilla (billions of dollars of new industry) and Bowen, close to the water and billions of dollars of new industry.
    Regards
    Kevin

    Profile photo of Prattman77Prattman77
    Member
    @prattman77
    Join Date: 2005
    Post Count: 16

    We have one place under construction in Dysart, and several offers rejected as their owners are keeping properties close at the moment.  Wildly CF+ each one, and the CG seems to be well worth it as well.  Our $374k off the plan just sold for $395k on the open market in the same complex.

    Have fun.

    Profile photo of ngallenngallen
    Member
    @ngallen
    Join Date: 2010
    Post Count: 1

    Hi Alaister

    I have owned a house in Dysart for 5 years and it has been cashflow positive since day one.  My partner bought a house in Dysart 18 months ago and it has been cashflow positive ever since  too.  I was in Dysart last weekend and talked to a number of people to get a feel for the viability of the town.  There was a rail extension, road widening works and the town has had considerable investment since when I was last out there 2 years ago.  I am now selling my house as it has substantial capital growth and we would like to take it out and put it into our non-tax deductible home mortgage.  We are keeping my partners house though as there is still much more to be earned.

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    hi guys do you think buying a 2 bedroom apartment with 12% return is good to invest in that area. its brand new place.

    please suggest

    thanks a lot

    Profile photo of coalstarcoalstar
    Participant
    @coalstar
    Join Date: 2007
    Post Count: 122

    my advice would be is to try and secure a corporate tenant on a minimum 2 year lease.

    Profile photo of Prattman77Prattman77
    Member
    @prattman77
    Join Date: 2005
    Post Count: 16

    Hey PropertyGuru,

    I sent a PM with some info.  Let me know if I can help. 

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