Forum Replies Created
Hi,
In terms of Armadale, it has had a 44% capital growth in the last year, so you may have missed the boat and rents havn’t kept up.Karratha has had a high median house price for the last five years (>300K) although rents are high, so you may have missed the boat there too. As far as I know there is a shortage of housing so high rents. They may still be good places to invest as they are still growing, but not if you want a positve cashflow property. I’ve a sister in Port Hedland and the prices here are more reasonable with still high rents. You would have to research the growth there etc though. MIning is booming in WA as you probably know, so these towns are booming- what does the future hold though? I don’ t know.
Esperance is a beautiful place , but it is a fair drive from Perth (6-7 hours)
These are my thoughts- good luck!
I also think some of the figures in these magazines are strange. I read one thing in the paper and another in API, and get another idea from speaking to people. I suppose it depends on where they get their data from. Sometimes it’s better to speak to locals- maybe ring some agents in the area to get a better feel.Therese
Can I just say that yes it is possible to find properties that you can turn into cahflow positive, but in today’s market it is hard work and if you are not prepared to put in time and effort you may not reap the rewards. Investing in real estate is not a way to get rich quick unless you put in some serious effort early on.
Our PPOR has turned into a CF+ after moving interstate (it is our first one) but has become that way after much blood sweat and tears. We bought it at a mortgagee auction , it had a half finished renovation at the front(brick work no roof) and we proceede over 12 months to renovate the place and turn a 3bedroom to a five bedroom house whilst my husband was working and I had three children under five at home, the youngest was 3 months when we started. We did alot of it ourselves and employed family members as well, consequently we spent only 25K to finish it. I’m not saying it was easy- it was probably the busiest year of my life [ohno2]and now we are reaping the benefits being able to rent it out and looking at buying again using the equity we now have.
So be prepared to put in the hard yards and you will reap the benfits later on!![biggrin]Therese
Hi I have a friend who lives in Kalgoorlie and they have had massive growth in their house (as with all WA) and it is a booming area. As long as mining is booming it would be a good move I think
Therese
Hi, I am not that experienced but how about buying investment properties that are cashflow positve(or that you make so) and then buying a property that will get good capital growth (mostly these are negatively geared) and using the income from the positve properties to pay the shortfall?
Therese
Sorry forgot to add- we probably want something that is reasonably good but not the flashest twonhouse.
Therese
Thanks Alistair,
We are looking at buying a house and building a townhouse on the back after subdividing. Land would be about 350-390m2 to build on, we think a 3 bed 2 bath townhouse.
thanks!Therese
Hi,
We are looking at buying around Burwood/Box Hill South at the moment. If you’re into developing you could pick up a old house on a subdiviable block that you could build a house on the back or completely develop later on if you wanted to. Box Hill south has reasonable size blocks and there are lots of examples of what could be done if you drive around the area. Especially the parts of Burwood and Box Hill that border Camberwell, Glen Iris and Surrey Hills as they have all had good growth over the last 12 months.Therese
Hi Ken,
We are in a similar situation to you, with our home in Perth having a huge capital gain in the last few years.
We have just moved to Melbourne and are thinking of doing a similar thing to you, buying an investment property using our equity. Similar situation to Perth, except the rent is better over here. However, still not good enough to get positive cash flow.
We are looking at doign something creative, like buying a small house on a large enough block to subdivide and perhaps build on the back, as well as renovating the front house.
I agree that it is hard to buy in at such prices and that you need to think about buying a property that can be improved or developed in some way , or another strategy like wrapping (which I don’t know much about)I wish you well,
ThereseThanks guys, lots of food for thought!!
The amount we can borrow is our limit(in terms of repayments, interest only) so i think we might try to do things in smaller steps and are looking into doing a jv.
[hair2]
