NSW coastal fibro!

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

mag
Member
@mag
Join Date: 2004
Post Count: 1
December 27, 2004 - 2:10 pm
The property is $275 K (fibro house in great location…300 metres from beach and international golf course)…rent is $185 pw. A large proportion of 65 and over retirees (30%) and 16 years and below (20%) age group…60 minute drive south of Batemans Bay
I figure (after costs and negative gearing) that I will be out of pocket by $6500 pa.
Is this a wise property investment?
byronent_2
Participant
@byronent_2
Join Date: 2004
Post Count: 337
December 27, 2004 - 2:33 pm
Depends on your situation and your action plan.
You looking for CG or CF?
Byronent
Adelaide SA
Robbie B
Member
@robbie-b
Join Date: 2004
Post Count: 2,493
December 27, 2004 - 2:42 pm
CG = Capital Gains
CF = Cash Flow
He is a newbie Byron.
Robert Bou-Hamdan
Mortgage Adviser

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Wally Shand
Member
@wally-shand
Join Date: 2004
Post Count: 2
January 23, 2005 - 7:26 am
I am a 3 yr newbie with one property.
This property doesn’t seem to go even close to steve’s 11 second or meet Margaret Lomas 20 questions.
Keep looking
Cheers
wally
royalty
Member
@royalty
Join Date: 2005
Post Count: 9
January 23, 2005 - 12:01 pm
Maybe see about an increase in rent with a bit of paint and elbo grease (cosmetic face lift) on the property. compare with similar properties in the area; To see the likley hood of rental increase and there by reducing your out of pocket expense.
[cap]
Rikky
Member
@rikky
Join Date: 2005
Post Count: 313
January 23, 2005 - 12:44 pm
There are a lot of things to consider.
Is there capital growth now or in the near future. If not then you are losing $6500 a year until there is growth again . (less than that as rent increases).
How long do you plan to keep.This could change the growth issues. If you were to keep it for 20 years then it really doesnt matter in the end you will make a good earn. But if you were to keep it for 5 years and it has little growth then you may not make anything on it.
Short term without growth doesnt mean you cant make money . You may be able to do a reno or sub divide or change the fibro to weather board s do the gardens etc. This may give you profit.
Hope this helps you if you want at beter repley give us more details on your plan for the future with this property .
Cheers Rick[drummer]