Hi.
I was travelling through outback Australia and I found what I believe to be a great investment. What do you guys think?
Location: Central New South Wales
Details:
2 Bedroom house
Fibro exterior, tile roof
Currently rented at $145 / week
Separate lounge, kitchen, dining and laundry
Evaporative Air Conditioning
Security grills
Yard is fully fenced
On a 847.3m2 block
Rates are $1422 / year
Neat & tidy condition (according to agent).ASKING PRICE – $79,000.
In saying this I haven’t personally gone to see the property – in fact now isn’t the right time for us to be buying. Therefore I want to know if there are any takers for this property and, if so, let me know what your offer is and I’ll be happy to pass on the details.
Phil [aacool]
“A life lived in fear is a life half lived”
Anyone can find deals with numbers but please tell us why you think it is great Phil?
You haven’t even advised the rental?
and I am assuming that this isn’t a thinly veiled ad for a property you are selling……..
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon,
The rental return (see my first post) is $145 per week. Based on a 20% deposit, this property breaks even, and this is the ASKING price. No I’m not selling this property, it was merely one that I saw in an agents window while travelling and thought that others may be interested even if I’m not in the position to purchase at this point.
I’m happy for constructive criticizm as to why this would NOT be a good deal – I’m only starting out investing and your input would be appreciated.
Phil.
Originally posted by Mortgage Hunter:Anyone can find deals with numbers but please tell us why you think it is great Phil?
You haven’t even advised the rental?
and I am assuming that this isn’t a thinly veiled ad for a property you are selling……..
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
“A life lived in fear is a life half lived”
Don’t get me wong – I am not being negative for the sake of it.
I get calls from folks each week telling me they have discovered a great property in some remote tiny spot or even larger spot like Broken Hill or Mt Isa etc.
At the end of the day you need to concentrate on two things.
Will the property continue to rent easily. Even if there is a closure of a major industry in the town.
Is there any prospect for capital growth?
Remember we have just had one of the biggest booms in history where everything went up. Thanks to Steve’s first book people chased pos cashflow out to the ends of the earth (Australia anyway) and prices went up in towns where prices normally never go up.
Now that boom has finished you need to consider whether, despite looking attractive, this property is undervalued or overvalued.
Another minor trap with the cheapies is that, despite being cashflow pos, one decent repair job can blow the annual profit. A HWS for example – esp in a town where there may not be a resident tradie – can cost a lot when compared to yield.
Does the town have a PM?
But – having said all of that it may be a super deal.
The sort of research you now need to carry out is not in doing numbers. Put down the calculator and look at the town and the facilities and prospect for population growth.
Keep working mate.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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