Hi guys,
I am a newbie and putting together a list of ideas or a criteria to follow in the search of +ve cash flow properties. If any of you could help or add any suggestions I would be grateful.
– Location -Rural areas
– Good Population growth
– Low unemployment
– Potential for capital growth based on historical data.
– Commercial investment potential i.e. are there any major companies or industries opening up near by.
– Infrastructure – Major road access, How far from major city.
– Rent v’s Own data
– Vacancy rates
– Recent sales of similar properties
– Location of Schools, Uni’s, Shops etc.Is there anything else that you would consider/add and how would you priortise these in terms of importance.
I don’t think I will have any trouble researching and finding the information (although it is time consuming), my trouble is knowing what is most important. As I have not had much experience in this it is hard to focus on the things of most importance and sometimes can get confusing when considering so many factors.[
]In anticipation…
Thanks
TroyHi Troy
Excellent list. They are all important.
Also talk to Property Managers in the areas that you short list, particulary if you are from out of town.A forumite in an earlier posting also mentioned talking to the police in your shortlisted location.
Visit the area and maybe walk or cycle around it. Take your time to develop a feel for the area.
Good luck with your hunting.
Regards
Hi all,
This seems to be a very important part that is things to look for…
I believe that its not a matter of picking an area and bang penetrating the market and finding x amoutn fo +ive cashflows, i believe there is an art form as to taking opportunities and changing those to make better situations i would blatently put it as keeping your eyes peeled… i believe and i hate mentioning names but in this case she deserves credit Anita Bell who has a great nifty checklist of what to look for in a property so once you find a property in an area you find your bargaining points and this creating a cash flow positive i think that i would recieve some strict critisism to this but i believe that kiyosaki follows the same euntreprenuer( sorry i am no good at inglish…) skills.
any comments is appreciated
Regards Josh
Great list Troy, that is definately a great starting point, sure a little more further investigation would be needed such as hitting the streets and getting a feel for the place.
But that is more than a good starting point, very comprehensive, i’m impressed.
Fudge111[8D][
][^]Thanks very much everyone for your positive feedback. Muppet, checking with the police and stats on crime on the area is not something I had thought of, thanks for that. I will certainly take that in to account. Being new to an area it is sometimes hard to get a good indication of what is considered a “good” area and a “bad” area. I think speaking to the police may help. I will stay on the hunt.
If anyone else has got any additions to this or can give me an idea of their top 4 or 5 considerations I would love to hear from you.
Thanks again
TroyHi Troy,
You can always check out RPDATA (http://www.rpdata.com.au), however it will cost you… If you are interested in a specific area you can subscribe to the service for that particular postcode. This will give you the answers to many of your list items.
Regards,
Steve
Hi all
Another VERY important source of information is THIS forum.
I have just come back from a buying trip inspired by one of the contributers to this column.
He let it be known that he knew of a town that had heaps of potential and was willing to share his knowledge. He showed me video of possible buys, told me about the best/worst areas of town and put me onto the best local agents, building inspectors etc. He went through all the relevant Stats as well. The clincher was when we told me that the Banks were lending up to 95% of valuation.
I had a trip out there and purchased 3 properties
1) a $110,000 block of 4 flats returning $340 pw
2) a $125,000 duplex returning $240 pw
3) a $80,00 house returning $160 pwAll up I’m $155pw positive cash flow after outgoings even tho I’ve borrowed 104% of the value to cover purchase costs. (equity mate!)
There are still more bargains out there so I’ll be going back soon
The guy on the forum mentioned these buys sevral times, but I’m the only one who took him up on his offer. When I asked him about this he said he couldn’t understand it.[?]
IF SOMEONE ON THIS FORUM OFFERS TO SHARE THEIR KNOWLEDGE, LOOK INTO IT…IT MAY JUST BE THE GOLDEN OPPORTUNITY YOU’VE BEEN LOOKING FOR.[
]Having said that, ALWAYS make sure that you do your own “due diligence” research.
T
Hey truska,
congratulations on finding theswe properties thats great, hmm cant say im not green but i couldnt have done anythign myself [
] but may i ask what area it was i am in no position to buy but i am interested in testing myself to find these properties and never no if i find more i could handball them to you (at no charge of course) its only an excercise i wish to undertake.Regards Josh
(thats if you wish to email me rather than reply)
Hi Josh
I’ll check with the guy who put me onto it originally and let you know how he feels about it. Shouldn’t be a problem though.
T
What a great story Truska and a very good tip. Since discovering this forum I have learnt more about property investing than any book of had read or tape I have listened to. Although I think I missed that particular suggestion, I would also be keen to learn more about where you are talking about [email protected]. I only have one PI but am very keen on aquiring more. smoros, I will check the link out and Josh, I will shoot you an email re Anita Bell.
cheers
TroyCheers Truska,
Thanks for your comments. Its been great dealing with you, and Im glad you were able to secure the 3 properties. Exciting times ahead…
I am fortunate that I am in a position where I have the time and ability to research both locations and the actual properties. I found the use of a video camera excellent value. It provides great detail for future reference (including the commentry) and enables buyers to have a “virtual tour” of the property.
As Truska mentioned though, it is critical that buyers conduct their own due diligence. I can provide statistics, opinions, trends, figures, rents & local town gossip, but at the end of the day it is the investors $$$$ and they need to perform some research as well.
There are still plenty of +ive cashflow properties out there.
If anyone would like any further information, feel free to email me vmax at bigpond.net.au
Congrats again Truska,
Cheers,
Battz
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] but may i ask what area it was i am in no position to buy but i am interested in testing myself to find these properties and never no if i find more i could handball them to you (at no charge of course) its only an excercise i wish to undertake.
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