hello,
As i cannot find cf+ property in Sydney area, and not comfortable to put money on other state that i have no knowledge of, i was thinking to do a traditional -ve gear investment for a start in a suburb that is tipped to boom in next few years.
i have a home with $300k balance, and about $200k in equity.
i see a 2 bedroom full brick unit at $500k that has potential rental income of 460/week.
lets say i borrow 95% of $450k, use $100k equity for down payment + closing cost.rent – $23920/yr (assume full 52 weeks)
interest (assume 8%) – $44000/yrwithout going further to calculate other expenses like agent fee, and depreciation, this is really not affordable is it?
should i look at somewhere more affordable or is there a few good way to turn this around as better investment opportunity?Hi
Just my personal slant on your problem.
But you need to over come the emotional block that prevents you from investing out side your own location .If you limit your self to an area you live in or are in close proximity to.
Is to ignore the potential of the rest of market to provide the type of properties that could be wise investments for you …
There are so many opportunities out there if you look. weather its buying an I.P in the next street or in the next state…Hi Kreepy,
It all comes down to your own personal feelings. Do you really want and IP now while the boom is on or Do you want to wait untill it is over and not make any gain at all.
With the amount of equity that you have available you have the ability to put down more deposit and go into one of the new products that have come into the market for Investors. 1 product in particular, the rate can start from 4.65% which can turn a Negitive flow into a POSITIVE FLOW
If you look around there are products in the market which can turn Cash Flow Negitive properties into CASH FLOW POSITIVE.
Sharlene
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