All Topics / General Property / Should you buy in lowlife areas?

Viewing 5 posts - 21 through 25 (of 25 total)
  • Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
    Join Date: 2012
    Post Count: 160

    I'd rather buy big land in a "lowlife" suburb than paying $1.2 million for a box in the inner city with a 2% yield.

    There's much better value out there.

    And people aren't lowlifes for living there.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    You might need to change your view of the area so that you don’t let your attitude get pushed onto your pm. If you think of your pm as a lowlife, what will you expect in the way of tenants?

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    alfrescodining wrote:
    I'd rather buy big land in a "lowlife" suburb than paying $1.2 million for a box in the inner city with a 2% yield.

    There's much better value out there.

    And people aren't lowlifes for living there.

    Agree with the last sentence – just because an area's deemed to be a lower socio economic area or whatever they want to call it – doesn't mean that the people living there aren't decent.

    Not sure if I agree on the land comment though – but that's just me.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of xdrewxdrew
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    @xdrew
    Join Date: 2010
    Post Count: 479

    It really depends on your level of confidence in the tenancy and the level of risk you are prepared to take based on that tenancy.

    I used to be hopelessly conservative on my tenancies.

    I would stick to a level of lower middle class (in other words, new immigrants who knew how to look after a place and poor people who were on the climb up). Low rent payments, but on the other side .. lower property expectations too.This strategy works on the premise that a person who has worked for a days pay knows how much the value of items is .. and therefore has a genuine degree of respect for the property.

    Overall .. thats what i'm really looking for in a tenancy. Someone to respect my property and pay me money for it.

    After coming to the conclusion of that last sentence, I then realised that the demographic group really didnt matter .. it was the responsible tenancy that I was looking for. So, I narrowed my criteria to people of ANY grouping .. who were able to pay on time .. and be  responsible for my property.

    It DOES mean that i will query the property manager till i extract the core elements of the tenancy from him/her, but for me thats worth it more than the money.

    I dont pick on race or sex or age. I will however take into account their ability to care and respect my properties.

    Profile photo of MemphisPropertyInvestorsMemphisPropertyInvestors
    Member
    @memphispropertyinvestors
    Join Date: 2012
    Post Count: 3

    As an American investment company, we have experience in this area.

    We are finding that many investors are now looking into low income housing areas.

    With the economical down-turn in Memphis Tennessee, our rental properties are across all ranges, from good neighborhoods, to bad. I would recommend that you have a target marketing (purchase) area, but also be open to other opportunities to grow your portfolio.

Viewing 5 posts - 21 through 25 (of 25 total)

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