I can’t find any investment properties!!

I’m sorry to say Sweet that if it fit the 11 second rule, it won’t ever make it to realestate.com.au. Have a search under that or positive cashflow investing and you’ll find that its getting a lot harder (though not impossible) to find such deals. And I suppose the secrets out too and everyone whos bought Lomas or McKnights books are all looking for the same thing. A lot easier when theres not so many people to compete with. Even the regional’s net yield have come down to under 5% mark.

HI Sweet,

In the main you can forget about finding such properties on the web.

If you are serious about investing you need to identify your preferred/suitable areas that meet the two financial constraints. A possible starting point is to identify areas with median prices around the $100K mark, cross referencing this informatioon with more desirable areas to identify your chosen localities.

Once you have done this network heavily with agents working in the area. If you play your cards correctly it is then possible that they may contcat you before a property is listed.

Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958

You do the young 18 yr old “Sweet” a great dis-service with this ‘advice’. What positive advice do you have for the young chap to get his first deal under his belt ??

Clones – talk about enticing someone to crash and burn!!!

Sweet – Please do not despair, there ARE 11 second solution properties out there, you just have to go to the regional areas. Tenants may be at a premium in these areas but you need to think outside the square to attract and then retain them. Perhaps offer a week’s free/discounted rent or reduce the rent so that it’s under market value (it can be increased later) and then keep the tenants with small inexpensive items like the odd movie ticket etc.

Cynicism is the death of optimism which you need in this market to keep looking.

Perhaps also as a suggestion, you should chose an area in your locality, become an area specialist and then the opportunities will abound for renos and value adding.

Keep you chin up and keep looking!

Cheers

Lisa

hi Dazzling
don’t attack clones I like his different view even if it is one sided andhe thinks the world is going to impload but lets get back to the post.
Sweet there are a couple of ways of finding a posi property and you need to decide which is the path you will follow.
here is a couple of examples
1. find one
go to the gold mine or mine fields find 7 or 8% return property and start renting they are there you just have to go there unfortunatly the web is good for research but not much good for buying as we all can see them.
2. make one
or in my case develop properties that can if they are in the right place at the right time be + but I also develop as -ve for different reasons.
3. take a negative property, cheap reno and make it a +ve
4. buy into a group that targets comm properties and leverage off that.
5. do a small syndicate with a builder for say 3 townhouses sell 2 and hold the last which should be posi as the bank won’t lend unless there 30% margin in the development
in wa they are called triplex site in the east we don’t have them we would be 2 duplex site next to each other.

as you can see that yes you can take your money and put it under the bed or in a westpac term deposit at 4% I think,
or you can become an investor, I like the latter and invest
my path is developing and I like it
some people like reno’s and there money to be made
theres some that like investing in mining areas again you can find posi”s there
trouble is that to find them these takes alot of trouble and we as humans always try to find the easiest isto do nothing.
you must decide your path and then become an expert in that path and unfortunately for us all the net is not the ideal tool for this the only tool is hard work and going to the towns or cities you are interested in.
[fear]

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]

G’day Sweet and Samjames
Horsham Victoria is still providing the odd good return..We have a couple [housing comm homes] ..
1. Purchased $89990 renting @ $140
2. Purch. $90000 rents for $145
We are happy with them. Not all our properties are this type though, have others in other places, [newly constructed}, so we sort of spread things around a bit.
I don’t know if this one is still on the market [assuming it is] but cannot see why this property would not rent for around the $140 ish…it has been on the market for a while, last I heard it was a $95000 asking price.
http://www.wesdavidson.com.au click the $0 to $100,000
click Horsham and then search…should be the only one to come up they have $99,000 on it..
Do your own due diligence on it though, naturally..For our 2 x housing comm homes we got 90% funding. We only have pre approval for $81,000 at moment or we would buy this as well.
Regards

Sam

Exactly prior to the resource boom Kalgoorlie was a town with a declining population (still dont think its much chop) However, I know people who have bought there over the last year or two for the cashflow and have been pleasantly surprised with the CG as well..(one has sold his IP’s a couple of days ago and putting money into spec homes into WA CG Zones)

“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator

Hi guys,

These country towns (WA I’m talking), can provide a good foot in the door for the new investor looking for both confidence and pos cash flow properties. My very first investment 3 years ago was a $40,000 Fibro house in a small country town. At the time it was all I could afford but determined to get into the market and gain some insight I grabbed it. OK the capital gain is minimal, but it is never untennanted and its provided me with knowledge and confidence and the drive to move again and again!!! 3 years on and I am looking at buying property number 7. All I can say to any newbie is some of these country towns actually have a shortage of rentals and more than one industry!! Look outside the square its amazing what you will find. Good luck.

sq[baaa]

Sweet,
This subjecty raises it’s ugly head every now and then and the same things always come up– people still keep saying that there are opportunities out there but you cannot rely on the websites for your opportunities .
Get out there and look face to face –Sure you may have to go to the sticks and you may not get the capital growth of the larger places but people still have to live somewhere in these medium out of the way places.
We tend to stick to places of around 9000 to 11000 residents and we have been blessed so far.
Have had several opportunities that we have been able to latch on to and have just now settled on small block of 6 * 1bdrm flats for $155k . looking to spend no more than $20k to renovate and have 2 tenants in now whilst reno are under way and paying $80/wk.
That is 6 * $80/wk = $480/ wk. for MAX outlay of $185k (inc legals etc)
Interesting that this place was not on the r.e. books and after viewing other properties, we asked if there was anything else around —even if we had to spend some money on it??
“Well the owner has been “umming and ahhing” about whether to sell”
On a similar topic but looking at Capital Gains— A house that we had a look at in May 2004, when we first got interested in this positive investing stuff, we could have purchased for $95k returning $165/wk, but being the tight arse that I am I offered only $90k and it was refused—However somebody paid the $95k requested and now it is back on the market at $150k.Don’t know what the rent is currently but not a bad capital return for a country town.
Close to 50% growth in less than 2 years. And a major point –not a lot of money outlayed
Just another example of not putting too much faith in the INFAMOUS “11 Second Rule” I believe it was only ever meant as a guide. Keep looking but go for a drive and check it out on the ground and keep asking.
Sorry if this is waffling but
Here endeth the first lesson.
Cheers Len