hi guys
I am a newbie here ..
with my situation ( as the budget is tight ) .. I have shortlisted the things I can do ( without loosing my ppor)
this is what I am looking for
positive gearing IP ( even neutral gearing would do great – one's who can pay off mortgage and for rates and repairs would do good )…
budget of 200 k
did some research – found these areas promising …
traralgon , horsham , mildura , geelong , ballarat , bendigo …
among these mildura and horsham seems to be within my reach ….
geelong is off my limits …
my limits
if the IP is vacant for 2 months – i can manage
if its vacant for 4 months – i will start worrying …
so I am guessing that I need to look for blue chip areas ( close to city centres ) to get the kind of rent I am expecting …
looked up some properties in mildura – noted a wide difference .. I mean there are 3 bedders for 196 and some one's for 250 as well … ( couldnt see why this is … may be good and bad areas )
and noted there are few which have been rented ….
as you know banks see it in a different way when they are already rented ( am I right…. )
i did some figures and have seen that once the property value crosses over 160 — with the average rent of 200 — it needs some negative gearing
i can negative gear if necessary ( < 200/month ) …
so i need advise on
has any one invested on positive gear or neutral gear properties in the above mentioned areas
can you suggest any other areas
what are your experiences and suggestions
is there an online calculator that I can use to do my sums with IP's
at the end of day
planning to buy 2 IP's
not expecting a huge capital appreciation … slow and stead would be fine
and after 5 years able to pay off my ppor
2) hot spots for land in victoria
has any one bought land and did onsell on them before settlement ( by paying 10% deposit )
if so what are your experiences on that
my idea is to onsell them if I can get capital appreciation on them
I am sure there would be expenses but not completely sure if I on-sell it before settlement
cant see much of this type of land in victoria
any light on this
once again thanks heaps …
i am not going to give up ( though my budget and earning to small now ) untill I exhaust all options
waiting for ur reply
sri
HI sri,
two of the areas you mention, Bendigo & Horsham are both good for steady but solid growth, and low vacancy rates. Bendigo is one of the tightest places in regional vic at the moment for renting. Stuff in the sub 300k price range is good, and while not CF+ may suit your requirements. Most people have several good applicants for their IP's queing up long before settlement. Like anywhere there are better areas. In Horsham north of the railway is considered less desirable, and in Bendigo Long Gully, parts of Cal gully & parts of North Bendigo & Eaglehawk are areas not as good – but it's all relative.
All the best
I have a real thirst for Ballarat in the next 12 months – just bought a place in Melbourne 8 weeks ago, so I need to cool my spurs for a little bit
If you're looking at Ballarat potentially, keep as all in the loop – hopefully you like what you see…I've been looking at about 25-30 properties around Ballarat and surrounds, advertised for around the $190,000 to $225,000, and watching them sell/not sell, almost half have sold for less than $200,000, which is where I want my next mortage to be as well…
Would Bendigo still be a good place to buy? I know that there has been steady capital growth there and I know from experience how tight the rental market is and the current demand, but there are lots of new houses being built. There are heaps of houses going up in Kangaroo Flat, Golden Square, Epsom, Junourtoun and Strathfieldsaye. Would all this new building mean that the capital appreciation will start to slow significantly and that the rental market will ease as there are more properties available?
You need to look at your figures more closely (or are you working on an 80% loan?).
A house at $160K will be cf- with a rent of $200.
I count ALL the costs of purchasing. Even if you pay the 20% deposit + the stamp duty + the solicitors fees out of your posket that money could be earning you money elsewhere so it still costs you.
Don't forget to add the costs of rates, insurance and property manager fees.
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