I’m 26 years old and still living with my parents. I have an annual income of approx $65k before tax. I am relatively cashed up and ready to invest in property. I have located some small properties (2-3 bedroom houses) using the internet that are within the range of $50k to $60k. They are located about 3 hours from Sydney. It would be fair to say I could buy into one of these properties and cover approx. 40% of the purchase price and also all closing costs (5% of property cost).
So what do I do now ?. How do I find out if there is any renting potential in this town ?. What paper work has to be done when buying a property and accomodating a tenant ?. Where do I get this paper work ?
Thanks, any assistance would be great.
Stephen.Hi Stephen
Talk to all the agents in the town to check out the rental demand.
Also, I know that Steve’s book focussed on properties under $100K, but it’s my experience (and I spoke with a few agents this weekend in country towns – Gunnedah/Boggabri especially), and their opinion (and mine too now that I’ve seen some of these places) is that they are cheap places because they are cheap. Good tenants with halfway decent incomes can afford to be a bit more discerning, and only pay an extra $20-30 per week, to get a much better property.
Perhaps look for some that the purchase price is a little higher, and maybe newer, and go for some depreciation as well – you have the taxable income to wear some neg geared/pos cashflow places.
Cheers
Mel
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