Forum Replies Created
- Catalyst wrote:All sounds good in theory.
In practice my Potts Point unit (TINY) has gone up 50% in 3 years. Had no trouble refinancing it last year at the higher price.
7.9% yield. It's my most favourite purchase. Very low vacancy rates.Hi Catalyst – just wondering, is yours the Crescent on Bayswater?
I would advise against buying reports unless there is a low fixed yearly cost to access a range of data.
I tried RP data in the past and was extremely disappointed – they charged $70 for a useless report in one postcode location and when I told them I didn't get what I paid for, they said that's all they provide.Charlie_B wrote:Hi everyone,
I'm a newbie on this site and am enjoying reading about people's experiences here.I'm not yet an investor, but am just about ready to jump in the deep end. My situation is as follows:
- Am 36yrs and married with 2 preschool aged kids
- Husband is paying child support for 4 other children from his first marriage
- I'm working part-time on a reasonable wage
- Husband is working full-time on an average/reasonable wage
- We are renting ourselves in Sydney and don't own any form of real estate or other investments
- We have no debts
- We have about $40 000 in cash at our disposal to invest
My accountant has recently given me advice to purchase an IP in a regional area. I have thought about doing this over the last few years, but just didn't take any action as I was unsure whether we could afford it. I think that investing in property is going to be our best chance of being able to buy our PPOR in about 10 years time. I'm only just trying to wade through all the information there is on varying strategies, finance, rental yield, capital growth etc… I've just purchased the Residex Best Rent Report which is somewhat useful in narrowing my search.
I'm trying to decide whether it's best to buy a small unit under $100 000 (a debt that I know we'll be able to service in the worst case scenario of extended vacancies, rent decline, interest rate rises etc….), or whether I should be looking at a better quality house that is around $300 000 but may be more attractive to tenants and buyers in the future.
Any thoughts?
Hi Charlie B,
Welcome to the forums.
If you are looking at investing in regional areas, I would look at buying a house instead of a unit. You can get something at roughly the price bracket you're after, and the advantage of a house is that it should have better capital appreciation potential.Regarding regional areas, I looked at 2 areas recently – Wagga and Tamworth. I bought at Tamworth because I prefer the town, and found exactly what I was after.
I think that a well-researched regional area is a good bet due to the following reasons –
1. Lower prices and good rental returns.
2. Government is starting to support regional areas more, and should give more infrastructure grants and assistance in these areas in the future.I would look at the investment as a long-term prospect (10 yrs+ timeframe) – capital cities are becoming quite populated and I am sure that regional areas will continue to grow as people look for additional alternatives for both work and housing.
Cheers,
AjayHi Japansuki,
I recently purchased a property in Tamworth after investigating both Wagga and Tamworth as potential options.
Both areas are good however I found Tamworth's facilities to be better spread out and better appear overall.
I believe populations in both areas are roughly similar, and have solid/diversified industries, which should keep the economy strong.
PM me if you have any queries or check out some of the properties there on realestate.com.au.
Cheers,
AjayThe agency could look for prior references on a property manager and esablish their track record of service etc. Its may not always easy to ascertain I guess.
But its the property manager (i.e. the individual) who probably makes the biggest difference at the end of the day.
cuteyoungchic wrote:From my experience, it doesn't matter much who the Agency is, but the individual Property Manager.
It's the Property Manager you're having a business relationship with, not the Agency.Yep definitely agree with that. You would think though, that the company hiring a 'good' property manager has enough good judgement to hire someone with skills. So in that way best to go with an agency who is well established.
Hi Robbie,
I would recommend Tamworth – I recently purchased there. You will need to look around hard to find a good property at your pricepoint however somewhere around the Westdale area would be recommended, but try to find something in a "better part" of the area.
Regards,
AjayHi all,
I was able to secure a tenant thru a local agent.
All I can say is stick with the bigger and 'established' agencies with experience. I went through a few recently and 1 was absolutely pathetic!Go with an agent that is solid and reliable!
Regards,
AjayRickH wrote:Hi Ajay, I have had rentals in Qld before but this time wanted something with low outlay that generates immediate income. We purchased a renovated 3 bedroom house in south Kansas City Missouri. After proprty taxes, management fees ect we clear about $700 p/m. 1st payment went into the account the other day. I have not attended anyones seminars in the past. I have spent a few months reading up and studying Kansas City and bought in a middle class area 65% owner occupied close to schools major shopping complexes as well is easy access to highway to get to downtown area quickly. We bought using HouseBuyersUsa and their service has been 1st class and so far so good. I believe every transaction is a risk but if you dont try you get no where ! Look at it long term your property pays its own way, you get passive income who cares if the values still down for 5-7 yrs ……. it costs you zipHi Rick,
Mind if I ask how much % down you put to buy the house and very approx value?
Something like property value $100k and put down $20k.
and I assume $700 per month is the amount you get in your pocket even after loan repayments (or am I wrong…)Agree on your point about passive income…
cheers, ajay
In NSW under $500k i would say –
– granville
– rosehill
– tamworth (Regional)
– wagga wagga (Regional)RickH wrote:Well today it is offical.
Settlement/closing completed today . We offically owner our first US property after months of waiting.Thanks to the guys at housebuyers USA for excellent service and communication
Hey rick,
Congrats – do keep posting your experiences about how things go in the US. Mind if I ask where you purchased the property?
I did go to Steve's seminar a few months ago regarding US property investing and I am not fully sure about the idea. I have stuck to investments in NSW. I am open to changing my mind but need to explore it in a lot more detail, particularly the unknowns and risks.
Cheers,
AjayHi all thanks for the info.
I actually called housing nsw in the area i bought and they mentioned that after the lease with a tenant expires that they will return the house to the landlord in its original state, minus any wear+tear. so i guess that may be a way to avoid any damage… any further thoughts on if that is a reasonable way to think?Hi all,
I know that the US property market crashes – can the same be said for the rental prices?? Or have rents stayed the same or risen while the crash happened?
thx IP Freely
Are PRD generally good for landlords (i.e. get the best rents etc?)who are the best PM agents in tamworth from experience – PRD, professionals, LJ Hooker, Ray white??
Ended up paying a bit higher but it's all sorted now. Buying a 3-bedder in Tamworth West
Building/'pest inspection happening today hopefully all goes well.cheers
Thanks Scott – aside from that, any general issues in comparison to brick? Do you think the property value might be less because of this, or is corrugated iron ok?
And how about longterm stability and maintenance requirements for corrugated iron – would it be good?Hi Jamie,
Could I ask which street in Ashmont your is in? And woulld you say its in a roughish area?Cheers,
AjayHi Jacquie,
It was the brick one – offer wasnt accepted as I made a low offer due to the issues etc in the area. I'm looking at investing probably in the Mount Austin or Kooringal areas as they are a little better (I think) provided the returns are ok.
Cheers,
Ajayhi Jamie – who are 'the professionals' – are they an acual REA?
I haven't purchased yet but most likely tolland.
I don't think i'll be self-managing – will appoint a pm.cheers
ajay
