I have been doing a lot of think in the line of investing in property and after reading a lot of good peoples ways on this forum I have really learned a lot.
Got myself a copy of 0 To 130 Properties In 3.5 Years and found it very interesting , although trying to find ip's that he had found I'm not sure if there still around,I could be wrong.
I'm looking for advice from some of the experts here to lead me in the right way.
Our income details
PPOR Loan is 500
ppor is valued at 725
Looking at some ip's I see that the further I go from Sydney the more chance I have of buying a house rather than a unit.
Had a unit for 4 years and just cant see myself wanting to pay strata all the time.
Our main aim is to built wealth and get our ppor paid off.
I have been looking at Nowra area and see 3 bedrooms can be bought form 200+ and rents are good.
Rent is my concern that I really do not want to be cash flowing to much from my own pocket.
I would be really grateful for a bit of advice from you all to point us in the right direction in what way to go.
Thank you all heaps
I have two Ip,s in Nowra and building number 3 soon. About to fly down south so cant answer questions now. I will try and respond when i get back this afternoon.
Thank you for geting back to me.
I would be very greatfull for some advice from you and if anybody else could share some advice.
Thank you allRyan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547
I have in fact been reading some of the threads here that you have posted on.
I'm looking for the best strategy to get my ppor paid off and to build up a few ip's in the mean time.
My main concern is cash flow so I would be looking for good rents so not to put myself in to much strain.,I'm well aware that property investing is not an over night thing.
I was looking at Norwa for houses,if I buy in Sydney I can not really look for houses and units I would have to pay strata all the time.
Any advice on where and what strategy I should do would be grateful.
Thank you RyanRyan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547
I'm with you. Not a fan of units because strata strips any cash flow you might get. Houses are better because you can control the finances better (I think).
Before choosing a strategy you need to clearly identify your goals. There are hundreds of different strategies for investing in property and they are all good. But not all of them will be right for you.
You already know you want to pay off you PPOR….good! But how do you want to pay it off? Do you want rental income (aka. Positive cash flow) from investment properties to pay it off? Do you want to pay it off yourself while buying investment properties also? Do you want to get capital growth with your investment properties and draw down equity to pay off your PPOR (kind of like moving the debt to your investments).
When do you want to pay it off by?
What do you want to achieve from your property investments? How much cash flow per month do you want? How many properties do you want to own? Do you want high capital growth or high rental yields?
Do you want to buy and renovate.
By looking at what you want to achieve you can cancel out 90% of the strategies that are out there, as most of them won't suit you.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Welcome to the forum.
If paying off your PPOR is the goal – but you also want to invest in property, then you're going to have to find CF+ or neutral properties at best. A negatively geared portfolio is going to drain funds that can could be used to pay down your PPOR debt.
You're right – they are probably harder to find now, but they still exist. You may need to think outside the square a little. Perhaps buying something that you can renovate to command more rent. Maybe something with a granny flat that would enable you to recieve two income streams from the one property. You might also have to broaden your search – I'm not sure how Nowra stacks up but I had a brief search a few months back and don't recall finding any CF+ deals.
On another note, the newly sealed Nerriga Road linking Braidwood and Nowra is opening up next month. It's going to shorten travel distances between Canberra and Nowra by an hour. I can see more Canberran's holidaying in this part of the world – great for the local economy….possibly property prices too
OK in a nut shell Nowra has good and bad points. Unemployment is a bit of an issue but that being said it has many employment drivers and is below value compared to neighbouring areas.
I would stick to areas like
I like central nowra for IP,s because it is land locked and is full of older style properties on big blocks.
My last purchase was a 1000 sqm corner block property with granny flat. Cost $300,000 and returning $460 pw. I am subdividing and building on this block for extra profit.
I knocked back a house a year ago
Central nowra 1000 sqm. Old house split into 3 1 bed units. Could have got it for $320. rent would be around $420.
Another knock back was a duplex 1×2 bedder and 1×3 bedder.
Got it down to $250,000 but i was worried about flood problems. It sold and rents for over $500 pw. Should have jumnped on that one as only a 1 in 100 flood would have reached the footings.
For central nowra. Stay north of Allbatross road and west of the highway. There is potential outside of this but you must know your area.
Jail almost built to the south
Riverfront development and CBD redevelopment in the works.
Naval base expansion with big contracts on the way.
Nowra to nerriga road completed but still waiting for Nerriga to braidwood. This last section will really boost things.
Plenty more going on in the area. Hope this bit of info helps.
Cheersv8ghiaMember@v8ghiaJoin Date: 2005Post Count: 871
Agree with devo.
There is some good steady growth, and rental is fairly tight for most good places.
There are a few no -go zones though.
Parts of Bomaderry are suss. Looking at a Nowra map with north wher it is supposed to be, around south nowra/central nowra keep away from the area east of the Princes Hwy between say Park st and Kalender St, and across as far as around Vendetta St (fitting name!!)
Little bit north on the same side there are some areas where the police don't hurry too much if there is a shooting either. That said, there is plenty going on, and an example is Worrigee, where there is lots of new homes being built, and while some feel it is a bit 'lego landish' there is good growth, and high rental demand there for the newer places. As mentioned, Cambewarra & North Nowra (to the left over the bridge) would have to be the best areas in my opinion – last to drop in prices in the bad times, first to pick up in the better times.
All the best.
I really thank you for your information and it is really nice to get some real help from people.You are so right in looking for the dual rent in ip's but Im sure theres not lots around but one must just keeping looking out for an opening like this.
The great thing about this forum is that you get real info,even thought its great to read lots of books there is nothing better than the help from you guys.
One word you have said "shooting"
That is a big concern for me,is it really that bad?
My first ip guys all girls so I surpose I have that "what if" and "will it rent" and all the normal things that go with it.
With searching realestate.com.au and seen so many areas to look in at a reasonable price as I do not want to jump in at the big end for my first investment,I came across Taree and wondered why homes where in 130+ price range.
Is this because they are real country areas?
Buy 3 bedroom house for 150+
Lowest 3 bedroom for sale is 200 a week
My apologies on not been up to speed on all the areas in Australia but I was not lucky enough to have grown up here.
Very greatfull for any more tips
Shootings is a bit of a dramatization. Can’t remember one happening to be honest. There is a stigma around east Nowra . It’s a bit rough but I’m not talking burning cars and riots here. Just a lower socioeconomic area.most Towns have an area like this. Just be careful investing in areas like that Nowra or otherwise. Nathan on these forums does well targeting some areas like this.thecrestParticipant@thecrestJoin Date: 2004Post Count: 992
Drove the Nerriga road to Braidwood about 4 months ago, looked like lots more to do yet, some of it still 4WD territory then.
East Nowra – checkout the road to Springs Resort Club/Golf/Motel , you're not kidding about the low socioeconomic factor there, and I'd want a river at least as wide as the Shoalhaven between any IP of mine and the gaol, and all the family friends & associates who move there for easier visitation, there goes the neighbourhood. Be very careful and choosy in Nowra. Sorry folks, not my fave town.
The gaol is south of Nowra and to the south of the industrial area. Not really a safety issue. I think it’s more benificial due to high income employees and there families moving in. As for inmates families. I haven’t seen a bad effect in goulburn but I’m not really sure.
Yes east Nowra is a bit rough but many social housing properties are being sold off. Check re.com. This will actually improve the area as private owners move in.
Central Nowra is great.
So is north Nowra,canbewarra and some of north bommaderry.
Terry Ryder from hotspotting picked it for nsw. Also rates a mention from margrate lomas in the recent top 100 Australia wide.
Nowra is the employment hub for the greater area. Situated on the river next to canbewarra mountain. Minutes from beaches. A couple of hours from Sydney and soon to be the same distance from Canberra after link road 92 completion.
The naval base is still expanding with big employing contracts on the way. The aviation tech park next to the base is moving now.
In a nut shell you might be able to do better than Nowra but you could do a lot lot worse.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
thecrest very interesting to read your post and does get the mind thinking about looking at the whole picture.
If you where a newbie like me what areas would you be looking in?
No offence to thecrest. But if his comments alone put you off the place. That’s a bit misguided and sad.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
I second that. That new freeway…. they have only 2km-ish of sealing to go on that road. One of the BIG rules of real estate is FOLLOW THE INFRASTRUCTURE. A really long road connecting Nowra to Canberra is indeed some seriously expensive infrastructure. Perhaps Nowra is not thecrest's favourite town. So what. Smart bunnies saw major capital growth potential in Corio Victoria a couple of years back and bought up big. It is a dodgy area. So what. So was Frankston which has already boomed. And I refer you to Richmond Victoria which was a very scary place and is now unaffordable. Nowra has dodgy parts – so what. It'll mean there are tenants. And if they damage your property, that is what insurance is for. You're in it for the capital growth – riding the wave of property value increase that new road will bring.
Good luck out there!
devo76 Im far from put off Nowra,In fact Im going to there within the next two weeks to start looking around the parts you have all talked about.
I would never just walk away from one area just from one persons feelings,thats why I value everybody comments and the forum here.
JacM 100% right on the " INFRASTRUCTURE" , thank youevernat wrote:devo76 Im far from put off Nowra,In fact Im going to there within the next two weeks to start looking around the parts you have all talked about.
I would never just walk away from one area just from one persons feelings,thats why I value everybody comments and the forum here.JacM 100% right on the " INFRASTRUCTURE" , thank you
Happy to here that. If you need more specific info just let me know.
The link road 92 will be great but people should realize that its only the Nerriga to Nowra section that is complete( opening ceremony in oct). We still need the Braidwood to Nerriga section completed. It will happen next. In fact if you want to land bank out that way. You can get big blocks( 100 acres plus) reletively cheap. Imagine the value after its sealed and all those wealthy public servents start driving past every weekend.
The duplication of the highway to the north is at preferred route stage. This will bring dual carrige ways right to Nowra's doorstep.
Plenty of stuff on its way.
the naval base expansion is also good for high paying jobs. There is always talk of moving Richmond airbase down here to free the airport up as a second Sydney airport. Not sure it would happen but that would be great for the town.The new helo contract will bring 100+ jobs buy itself soon.
My personal opinion is they need to stop stuffing around and develope the riverfront. Big plans are on the way including 5 star multy level accomodation and riverfront precinct. This would really kick the place along. It has a great riverfront but it has nothing on it. It is happening with i believe developers moving in now. It just needs to be pushed along so the council dont bog it down.
For what its worth.
RP Data report just out says Nowra has performed well in recent times.
Houses up 3.4% in the last 12 months.
Rent up also.
Unit and townhouse are up 25% in the last 12 months. Thats the third best gain in coastal Australia.
I believe that because a mate bought a 2 bed town house in the CBD about 30 meters from one of my IP,s. He paid $185,000 about a year ago. Similar ones in his block are going for $245,000 now. This should start to push nearby houses up too because some are not much dearer than this. Probably should get mine valued soon.
The horse may have bolted for units but houses may be the next to start moving.