All Topics / Help Needed! / Investing in dodgy areas

Viewing 12 posts - 21 through 32 (of 32 total)
  • Profile photo of shirlthegirlshirlthegirl
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    @shirlthegirl
    Join Date: 2007
    Post Count: 1

    Okay, here goes.  I too have purchased a few in some dodgy areas which are cash flow positive.  Namely, Davoren Park in Adelaide.  From what I hear the place is rough beyond a doubt but the area is changing with new infastructure happening and capitol growth is reasonable.  I also have one in Dubbo in NSW in an area of low socio-economic status with HC tenants but I have not had a problem with them paying their rent, as Sonya said it is paid directly by centrelink via direct debit.

    As long as you have a good property manager and good insurance there should be no problems.

    Profile photo of djjkdjjk
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    @djjk
    Join Date: 2010
    Post Count: 87

    I own a block near Buffulo, NY.  Not so much dodgy, just low socio economic.  I was also looking at Cleveland, OH and noticed that the better cash flow returns were generally found in the cheaper areas.  

    Before I turned to the US, I was quiet keen to purchase in the Lakemba area as yields are great there.  Decided against it though as for the $200k I was about to spend there (for $12k year rent) I could get 3 or 4 times that investing in the US….

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi ambosh

    Are you an Australian who invested in the US?  If so, how did you go about it?

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jamie StoneJamie Stone
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    @jamie-stone
    Join Date: 2010
    Post Count: 12

    Anyone have any experience with investing in the western corridor of Sydney eg Penrith and surrounding suburbs? I'm looking at purchasing around there a 3-4 bedder that needs a full reno. I've been told it looks like booming in the near future however I'm trying to find evidence to back this up. Can anyone confirm or deny these allegations? Or know how to find facts to back this up?

    Profile photo of Ol PaintingOl Painting
    Member
    @ol-painting
    Join Date: 2003
    Post Count: 123

    I bought 2 years ago a completely trashed ex-housing property in housing areas with bad reputation in Gunnedah, small rural town in Upper Hunter Valley in NSW. I'm overall happy with the purchase.

    The house looked like from “tenants from hell” stories on news. Everything that can be was smashed – walls, windows, bathroom, kitchen. Plus graffiti, cockroaches, rodents, horrible smell, dark bacause windows area boarded, backyard overgrown in a spooky way and full of rubbish.  House directly across the street was just burnt down. But it was a well planned 3bd brick house on large corner lot. 

    RE laughed at my offer of 80K (medium house here is 220K). But DOH accepted it. I put 50K & 3 months renovating it – new kitchen, bathroom, toilet, build-ins, polished floorboards, security screens to all windows and doors, venetians, fence, carport, garden, rubbish removal, plus travel expenses to travel here from Sydney to manage and to do work. We patched walls, painted the house inside out, got rid off “housing” varnished timber inside and painted brick outside. The house came up just great. Hard to tell it’s ex-housing! We rent it for $190-180ph. 

    The only problem we have – tenants do not stay here for long & move out after 6-12 months. They say it is not a matter of a price or a house – it’s just that the area can be roughs and nosy at night, they feel safe, but want to move outside the area.  

    Profile photo of sonyasalsonyasal
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    @sonyasal
    Join Date: 2008
    Post Count: 421

    Lesia,

    Interesting post, I have two houses in Gunnedah one in a housing commission area, that has been rented since I bought it in December 2008. Which street is your house in?

    Sonya

    Profile photo of Ol PaintingOl Painting
    Member
    @ol-painting
    Join Date: 2003
    Post Count: 123

    Bando St.
    Where are you?

    Profile photo of sonyasalsonyasal
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    @sonyasal
    Join Date: 2008
    Post Count: 421

    I have one in O'keefe place and the other is in High Street. I have a great property manager and have had no hassles at all. Both were tenanted as soon as I settled, previously owner occupied. O'keefe has ahd same tenant since December 2008 and High street I only bought in February this year.

    cheers

    Sonya

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663
    JacM wrote:
    Anyone else got stories to share?

    Purchased 4 properties in Broadmeadows, Melb about 12 months ago, considered a rough and tough area. I was attracted to this area due to proximity to Melb (15K) and also the fact that many of the properties provided opportunities for development.
    Currently all rented out from $270 pw to $300 pw, to date no problems with tenants, however some maintenance issues unfortunately.

    In Broady I purchased 2 houses side by side for $597K and currently  plans and permits 8 unit site (cost $32,000) with Council, should be ready in August and should resell for  $960K, approximately $120K per site. The other 2 properties are 3 unit sites which I will hold to develop in future as lending criteria at present stinks, I am a lo doc person.

    Also purchased in Perth, Westminister State Housing area $157K, 3 unit site 7 years ago, had 1 bad tenant otherwise all good. Value now around $475K am looking at developing this property now and should make $200K.

    I like State housing area,  my criteria is get as close to capital city as possible and look for properties with potential to develop as I believe this is where the big developers eventually jump into these markets and you can just enjoy the ride even if you don't decide to develop.

    I am now targetting an area in Perth which is currently with Council for rezoning, you beauty, I am going to try to get in before the herd.

    Cheers

    Profile photo of Ol PaintingOl Painting
    Member
    @ol-painting
    Join Date: 2003
    Post Count: 123
    sonyasal wrote:
    I have a great property manager and have had no hassles at all.
    Sonya

    Who is your manager, Sonya?
    I’m with the First National, but not very happy with them.

    They are trying very hard to screen the tenants, inspect property and get me the best rent and are always on touch. But they keep insisting on what appear to be way too high rent (hard for me to monitor market from Sydney). Property always stays vacant between tenancies for some time (last time it was way too long by my standards!) They keep telling me it has nothing to do with the rent, just noone wan to live in the area.

    What a nonsense! There is always a price/demand ration. When I insist they take the rent down by $10 I always had a tenant in 3 days. 3rd time it can not be a coincident.

    Profile photo of sonyasalsonyasal
    Member
    @sonyasal
    Join Date: 2008
    Post Count: 421

    Hi My PM Is Robyn at Lakeford Real Estate.

    Cheers

    Sonya

    Profile photo of djjkdjjk
    Participant
    @djjk
    Join Date: 2010
    Post Count: 87
    JacM wrote:
    Hi ambosh

    Are you an Australian who invested in the US?  If so, how did you go about it?

    Hi JacM.  Check through my recent posts in the overseas deals section.  I did it through alot of time on the web and a quick visit to the US midwest in Jan10.  Others offer a service to assist in the process. 

    Cheers
    Josh

Viewing 12 posts - 21 through 32 (of 32 total)

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