Are Forbes and Bathurst good towns for cash flow + properties? We have just bought one house in bathurst for $198,000 which will rent for $210-$220 a week. Should we stay here for our next property or should we look else elseware?
thanks
Peterps. we paid a $45,000 deposit so we only borrowed $153,000
Thats a similar yield you would get in a city. And you have better prospects for Growth in a city. If you have $250k for another property I would look for a unit or something with growth prospects in a city. Dont put all your eggs in the one basket.
If I had $400k to play with, I would sell the Bathhurst property and look closer to a major city. You gotta decide – do you want growth or Ve+ cash flow. That property you bought does not sound like ve+ to me and I have doubts about future capital growth. But please bear in mind I know nothing about Bathurst and Forbes.
And another thing – have you read any Jan Somers Books. If not, please do so. Ve+ is not the only way to skin a cat.
Just my thoughts.
Have to disagree with Yack about a unit in a city. I think they are a relatively poor investment as all the value is in land.
The returns you are getting in Bathurst (over 5% of purchase price) seem a lot better than in Sydney or Melbourne which are around 2-3%.
If you are comfortable with the Bathurst area and it has good prospects for the future stick with it. Otherwise do some research on areas you may like to invest and find an IP where the numbers stack up for you. CF+ is not the be all and end all of property investing. To achieve it you basically need to buy some crappy 50k property in a town no-one has never heard of to get a few hundred bucks a year.
Your strategy of large deposits will help you make better properties, in bigger and better areas CF+ faster.
Good Luck
I agreed with both points of view. Buy in rural as well as close to CBD. not CBD tho.
Yack, maybe half agreed coz you buy in CBD, but I’m just close by.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedom]I need to clarify. I dont buy in cbd. I dont advocate that. I buy in the surburbs of a city near where I live. If I had $250k to spend I would prefer to buy a 2 bed unit in the surburbs of Melbourne say Mentone and not in a rural town.
If I had a little more like $350k then I would prefer to buy a house in the surburbs of Melbourne like say Aspendale, Mordialloc or Parkdale.
My rule is to invest close to home, close to what I know and close enough for me to monitor. Its my money and I want control.
Just fyi Yack,
Apartment prices in Mordialloc for 2003 had the third biggest loss in VIC with a 12.3% drop, and Parkdale the fourth, with an 11% drop.
This was stated in an article in The Age, 27 Feb, 2004. (yesterday).
What suburb do you live in btw?
Steve.“Knowledge is Power”
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