Forum Replies Created
Hi Kum Yin,
I’ve looked at thousands of properties on realestate.com.au all across Australia. In Mildura, where I live, i’ve looked at hundreds of properties. Unfortunately, i’m limited to Mildura if I want to live in it for 12months and be able to take the FHOG. I’m slightly concerned because the vacancy rate in Mildura is around 6 %. There are a lot of subdivisions going up everywhere and a Marina (the first every on the Murray River that the company I work for is designing!!).
Also, prices in Mildura have sky-rocked in the last few years so I don’t expect any large boom in housing prices and with the LARGE amount of subdivisions i’m a bit concerned that their will be an oversupply of properties. The advantage for me is that I can hopefully bargain prices down a fair bit, but that doesn’t solve the problem of renting it out once/if I move back to Adelaide. Lastly, I can probably only get returns of around 6% max. gross which means it would be negatively geared for a few years. If i’m going to negatively gear a property i’d rather do it closer to a major city (although Mildura is 50,000 inc. outer suburbs now).
What do you think of my reasoning? Any thoughts about my ideas? Also, Victoria is the only state that offers $10,000 FHOG (not $7,000) which is also why i’d like to buy in Victoria and before I move back to Adelaide in 18months.
Cheers,
Paul[suave2]P.S. Is their any advantages in buying in NZ just out of interest? Do they still have stamp duty and all other fees?
Hi Todd,
Thanks for your reply. I’ve checked out the website and it appears very interesting. I will have to read through the reports in more depth when i’m not at work. Although, the information (and tables) are very generalised. I also noticed that all the report is isolated the capital cities and large regional towns in Qld and NSW. Do you have similar information for SA and VIC for example? Or is QLD and east-coast NSW seem as the places to invest at the moment.
Thanks
Paul[suave2]Hi,
I’m only 22 but have $20,000 saved up for a property. I plan to live in it for 12months to get FFOG and then turn it into an investment property and pay parents board. I’m looking around $120,000- $150,000. I earn ~$1200 per fortnight and save $700-$800 per fortnight.
How much would I need to save up before I can buy a property with the intentions of turning it into an investment property in a years time? (note $10,000 FFOG in Victoria where I live)Thanks[suave2]
PaulHi Crystal,
Thanks for your response.
When you talk about doing your research, do you tend to do your
research on the internet when looking for potential towns/regions for IP’s and then once you’ve identified a promising area you visit the place? Or do you look for very cheap properties and then find out information about the town it is located in?Also, how do you go about finding information such as vacancy rates and the current market value of particular areas? [you can PM if want]
Thanks
Paul [suave2]Hi guys,
Thanks for all the responses. Crystal, surely if you bought a property for only $75,000 then it would have been in a small regional town? How did you know that your particular regional town would experience such fast capital growth as well as cashflow positive?
Is it a good idea to try and find towns with a population of >5000?
Or should I be looking at small towns within an hour drive of a capital city or large regional town?
Whats the best way to identify a town with cashflow positive properties and likely to experience capital growth? i.e. With <1.0% vacancy rates for example?Cheers
Paul [suave2]Hi guys,
My only concern with investing in places like these is that these towns have populations of less than 5000 (or even 1000), is there enough demand in the long term to make it worthwhile buying property in these small mining towns? What is the vacancy rates in these towns and why are people selling if there cashflow positive? These questions need to be considered before buying in these towns mentioned above.
Cheers!
Hey, i’m 22 and i’d be keen to do this because i’ve just mainly read books and haven’t talked to a lot of people about IP. However, I live in Mildura (Country Victoria on the Murray River) so it would be almost impossible to organise meetings up here with a group of people??? Anyone from near me? I’ll probably be moving back to Adelaide in 18months time.
Cheers
Paul[suave2]Hi guys,
Thanks for all your replies. They have been very helpful. From what I understand Buffalo (and San Antonio) are still good places to invest if you have a good property manager and do your due diligence before buying any property. If you do all this then you are quite likely to buy an investment property under market value and with positive cashflow??
Thanks
PaulHi again,
I was just trying to think about why these properties have such large returns in comparison to Australia…What is the interest rates overseas in the United States? Why are the returns so much higher over there?
Hope someone can shed some light on this topic.
Thanks,
PaulHi Ozi (and everyone else)
Have you bought property in the US before or done any research in this area ? Can you tell me approximately what the net return would be on a property returning 20% gross?
What are land, electricity, water rates etc like other in America?
Thanks
Paul
[suave2]Hi guys,
I’ve heard that investing in display homes is a good idea because of the guaranteed high returns while the house is a display home. However, how would I go about buying a display home because i’ve also heard that their can be a line-up to buy display homes because of their guaranteed returns? Is this true? If so, how would one go about buying a display home to get the initial returns?
Thanks
Paul
[suave2]Hi guys,
Thanks for your replies.
I’ve talked to the real estate agent who sent me a complete list in an excel document of all the outgoing fees and rental returns and the property is still cashflow positive. The properties are returning 10.5% gross and 7.91% net after all corporate fees. (neglecting any land rates and some annual fees)
The only thing i’m not sure about is that its not a traditional resort that guarantees the rental returns, this is more like a large village of units with corporate body fees but its up to me (the landlord) to find tenants.
I don’t know much more than this unfortunately.
Regards
Paul
[suave2]Hey guys,
Thanks for your advice. I think i’ll have to read more of these forums then because i’ve read quite a few of the recent posts but these do not seem to answer questions like “How to predict which town or area will have the next boom” or “Where to find CF+ properties and how to search for them” ???
Thanks again.
Paul [biggrin]
I am looking for CF+ properties so that I can begin to reduce the number of hours I need to work everyday. I’ve read about 15 books of investment property and i’ve been looking through the papers and internet for the last 4 months and can’t find any CF+ properties. The best I could find was about 7% gross return from rent.
Any suggestions as to how I can find CF+ IP?
Thanks
Paul
