JG

It is possible to achieve both positive cashflow and capital growth from regional areas… I know I have.

Cheers

David U

Hi Peter

I think it was/is just the case of buying under value and the market catching up.

Cheers

David U

Sooshie

I agree

Cheers

David U

Hi Gordon

I only have 2 properties in the LaTrobe Valley, 1 in Morwell, purchase price $65k, rent $135pw. and 1 in Traralgon purchase price $80k rent $160p.w

Both purchases in Sept 02, both are worth approx $20k more than I bought for them. Have been tenanted from day 1 and are cash flow positive.

I no longer purchase in the Valley although there are still some good buys if you look thoroughly enough.

Local real estate agent in Morwell have a block of units with a 17% return; so deals are still out there. I haven’t looked into this particular property as the area is no longer of interest and I’m looking across the seas for much better returns.

The uni you refer to is perhaps in Churchill, next suburb to Morwell.

Definitely worth looking at the Valley as an entry point.

Morwell still has properties for $60-70k renting for approx. $130+pw. Traralgon entry price $85k + (if you’re lucky) renting for $140 pw +

Hope this tiny bit of info helps

Regards

David U

Hi

Just thought of one:

The government are looking at regulating wrapping and you will need to be accredited to do so in a business capacity in the future.

Fact or fiction?

David U

Michael

Excellent. Thnaks for sharing.

BTW I’m a great cook! and have done pretty good renovations in the past… Only individual rooms though. Looking at doing the whole hog as soon as I can find a suitable house.

Cheers

David U

Michael.

Excellent! Sound advice.

One more question: What experience did you have of renovating before hand?

Thanks

David U

Hi Michael

Sounds great.

How long did the renovations take? Any tips/lessons learnt?

Cheers

David U

Hi

Nothing wrong with ‘taking shortcuts’ as you put it, I would actually call it leveraging your time.

Our due dilligence is as follows

i) Rental history – Speak to last 2 landlords about payment history

ii) Employment History – Verify employment and salary details; ie call employer, check pay slips. You also may like to check that the company does exist and that it’s not a sham or their best friend pretending to be their employer – Been there… Not good!

iii) Credit check – Wrappees do this at their own expense; it costs $19.95 from Baycorp which they receive in a day or two and then forward on to us.

We return once it has been checked. Technically, we’re not allowed to keep a copy due to Privacy laws

iv) Another thing you may like to do is to visit them at their current residence to see how they live. Because how their house looks like now is how yours will look in 6 months time!!

That’s about it really… Also finally best form of due dilligence is gut feeling…

Forget about the tempting cash deposit and follow that and it’s hard to go wrong.

Cheers

David U

I guess the question is ‘How many can you buy at 90%?’

David U