WA +'ve CF properties - regional or metro?

Viewing 6 posts - 1 through 6 (of 6 total)

Don Trump
Member
@don-trump
Join Date: 2004
Post Count: 1
September 28, 2004 - 1:37 pm
As a new player are other successful +’ve CF WA buyers going country or metro? Can you trust the regional agents – if I was a regional agent and saw a +’ve deal I would buy it myself!
Scotty B
Member
@scotty-b
Join Date: 2004
Post Count: 44
September 28, 2004 - 2:04 pm
Hi
As with all agents there are good and bad, do your homework and phone around, even ask for references.
Agents normally charge more in the country (In Perth I pay 8% management fee in Karratha it’s currently around 10% for the same type of property)
“if I was a regional agent and saw a +’ve deal I would buy it myself!” – the problem is you can’t buy everything you see and just because at first it appears to be + it doesn’t mean it’s a good deal. Again do your homework, IP’s differ in quality, especially in the country!
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
PurpleKiss
Participant
@purplekiss
Join Date: 2003
Post Count: 580
September 29, 2004 - 2:00 pm
Not all agents want +ve cashflow, many to them, like many of us, were taught -ve gearing is the only way to go. I know the agent I purchased one of my IP’s through thought I was crazy to be buying it, he couldn’t see outside of the -ve gearing box.
We’re all differnt and have different goals that can be achieved in different ways. Search for what is right for you and do that.
For +ve cashflow you may have to look outside of the city.
Regards
PK
kp
Member
@kp
Join Date: 2004
Post Count: 509
October 2, 2004 - 9:54 pm
Hmmmm…
Does $500 pw on a purchase cost of $290k fit the criteria ??
I don’t know, I’m not very good with maths…
KP
Brenda Irwin
Participant
@brenda-irwin
Join Date: 2003
Post Count: 119
October 2, 2004 - 10:15 pm
KP, Based on your figures, that is an 8.96% gross return. If you can get interest rates of 6.5% or thereabouts, it leaves just under 2.5% for agent fees, council rates, insurance, repairs & maintenance.
Not a bad return by any means in today’s market. Check if there is likely to be any more rent increases in the next few years, as you may need them if interest rates increase.
Don’t forget a QS report. It can add a little back in tax depreciation.
If you want to get out of a hole, first stop digging.
kp
Member
@kp
Join Date: 2004
Post Count: 509
October 2, 2004 - 11:00 pm
Thanks Brenda,
Will keep digging..(out of the hole that is)
KP