No.. I am not a full time investor.. in fact, I have a hobby over property and shares.
I am working full time as a senior registrar @ NSW hospital.
It is not difficult to find CF+ve, you can try the regional centre, small town, etc…
I am in the process about buying a house 6 bed+4 bath 2 level double brick/render 670m2 plus granny flat @ Liverpool, NSW and 5 min to everything
I am thinking about getting NSW planning to approve the granny flat under new NSW planning law
I like liverpool as they are building the largest hospital in Australi, westfield, CBD, good train system, M5 and M7 etc….
It would be CF positive as I could have 3 potential rental income. A lot of people around Sydney South West have been renting out the granny flat etc.
BTW, you need a good mortgage broker and able to advise on structure/loan servicibility
Thanks for your reply, yes we do have an experienced broker, recently helped us to set up better than before.
looking at the stats that were talked about earlier in this post, it was helpful to note areas which are projected to decline in growth, or minimal in the coming years around QLD and NSW. Lots of areas tipped to grow massively.
We just had an issue with our 3br 1 bath in Bne (good area, close to schools, rail, shops)here, we couldn’t find renter for over 2 months. Finally someone moving in on Saturday. We’ had never had probs with that before – some say due to FHOG taking some renters out of that market? Not sure.Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189
Just purchased at Punchbowl other day 2 bed renovated, garage $195k rent 280-300pw.
ok, there are 2 Punchbowls in NSW, 2196 (sydney) 2460 (hunter and north coast area). I aasume you mean the 2196, but thought I’d better ask.sam2011Member@sam2011Join Date: 2010Post Count: 123
i think he means 2196 in sydneyDDMember@ddJoin Date: 2004Post Count: 508
Great price Nathan, good to see some Sydney deals that look sharp.
Snoopy, yeah its a personal choice. Most clients use me a few times if they are new to it as they get discounted contacts for building /pest inspectors and solicitors to do the conveyancing work. Once they are comfortable they usually do it all themselves.
Having said that I have several clients who have bought 6 or more through me. The record so far is 11 of their 13 ip's for one client.
Many are just time poor and think they are better off with select deals each week and pick the eyes out of my client emails. One client bought 2 ip's one morning, 3 minutes after I had sent out the email. Both contracts done that day with everything organised for a 6 week settlement. She still holds the Tassie one and the Cairns deal she resold for a $40k profit in 2 years.
Horses for courses really.
DD, Thanks for that, we are real DIY people, but sometimes that translates into some things taking a REALLY long time to do, or worse, not getting done at all.!
Snoppy.. it is not difficult to find CF+Ve
why bother with 2.2% finding fee.?
Just spend few hrs a week going through the realestate or domain
and know how to search or targeting the CF area
There was a list of suburbs at CBA website of %rental return.CazziePParticipant@cazziepJoin Date: 2009Post Count: 24
This discussion makes me wonder if Perth rents are too low.
I've been looking to buy something under 300k that is at least CF neutral and not having much luck. And yet there is a lot of talk locally about the lack of affordable rentals and the difficulty of renting a decent home. Makes me wonder if Perth rents will rise higher sooner rather than later.
Maybe Sydney is a better bet, although I did want to personally inspect before purchase and probably can't travel within 12 months which is why looking in Perth and southern regions of WA.yoyo galaxyMember@yoyo-galaxyJoin Date: 2009Post Count: 79
I drove around Lakemba, Wiley Park and Liverpool area in the last a few weekend to get a feel about the area.
Wiley park is a good area, price is moving up now a bit with lots of FHB. I went to an auction in Wiley park this Saturday, a 2 bedroom unit 65sqm, in a 30 years old block of 4 was sold in auction at 245k. The unit was in original condition, need a complete reno to do it up. It is not liveable/rentable in the current condition. My husband and I planned to buy it at auction at below 180k, do a reno then rent it out at around 300pw, it will be neutral to slight +CF. unfortunately there were several keen home buyers and the price just got lifted up too high.
I personally would keep an close eye in Lakemba, but wouldn't invest overthere right now. It is an area with crime issue and most non-local people would feel unsafe walking on the street after sunset. Although cashflow is good in the area, if the crime issue is not solved, the future capital gain in the suburb won't be as high as surrounding areas.
I agree that Liverpool is a good area to invest. However, the price and rental in north and south are very different. Generally speaking the units in northern side of the train station is closer to the Westfield and hospital, so the rent is at least 50-70pw higher for units in similar condition and the price is much higher too. I doubt if you could find a 2 bedder in northern side below 200k now. It won't be hard to find in southern side though.
In the end, you may want to balance the CF with expected capital gain. the units below 200k in these suburbs will not give you huge CF like the mining towns or regional area, so if you are purely looking for CF, they are not the best choice. However, they are not bad if you are looking at long term buy and hold with neutral to positive CF.danpackis1Participant@danpackis1Join Date: 2010Post Count: 10
There are some good ones in Laverton WA, as the mines are back in action again you could look at them. In fact I’ve one I’m willing to offload rental 260 per week and asking 140K.
If you need any information contact me
Young investorsam2011Member@sam2011Join Date: 2010Post Count: 123
hi danpackis, please post of the link so we can have a look
danviv thanks for all the info, i had some issues with the bank so might have to hold off for a few months before next purchase
The best way is to post it on the forum..may help you to sell as well
The reasons I like liverpool is
1. has not yet boomed.. with inner west suburb is getting overvalue, may spread to outer west
2. Major inter-hub suburb
3. Liverpool hospital – largest hospital in southern hemisphere 900 beds
4. Westfield/medical centre/retails
5. M5/M7/M4/train station/busways etc.. good transport system
7. some prediction..doubling the population by 2030?
8. price is still reasonable c.f. eastern suburb
9. vacancy rate : 0.9% according to SQM research
Yes.. Lakemba/Punchbowl have some criminal issues… but much better compared to MOREE, KingX etc..
I was being offered 2 bed renovated unit @Lakemba18 months ago for A$165k… but I declined due to criminal issue…
Now..the cheapest you can get ~200-210k unrenovated unit
GOM, or anyone(?)
As you mentioned SQM above, have you used their “home discount reports”? Just wondering if it is of value if one is researching an area?
Nope, it is based on how long the property has been on the market… I think?
Snoppy, why not you use shahabr's link to give u a perspective of valuation.. of course you can always ask for free Residex report from Richard, etc
oh yes, done all that, thanks. I haven’t fully looked at the tools on there yet.
I guess the idea with that report might have been that you can see the longer listed properties and maybe have some bargaining power. But no one has ever menitioned SQM on this forum except for the vacancy stats. So thought I’d ask.