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Hi,
Good luck with your first purchase. I know when I started investing almost 7 years ago I didn't know where to start but that was 62 properties ago so I wish you all the best.
If you are looking in NSW then check out the NSW Dept of Housing web site. It has heaps of info and they report quarterly what the rentals are per postcode. Here is the link:
http://www.housing.nsw.gov.au/About+Us/Reports+Plans+and+Papers/Rent+and+Sales+Reports/Latest+Issue/
You can also do FREE postcode and suburb searches on http://www.myrpdata.com.au
Regards
LeonieHi,
My husband & I just got back from Phoenix Arizona last week where we instructed at an Investing Seminar for John Burley. In the past year property prices in Phoenix have dropped 38% and we inspected a property that sold in 2005 for $320,000 and it is now bank owned and on the market for $150,000. It will probably sell at around $110,000.
Why the drop? The prices were over inflated in the first place and some parts of America (particularly Phoenix, Florida & Vegas) have an oversupply of housing unlike Australia. Credit policy was previously based on the ability to "fog a mirror" and lenders were lending 125% self ceritify loans (No/Low Docs).
In Phoenix it is predicted that it will take 4 years to fill the vacant houses (primarily built on the outskirts of the City). House prices are dropping $1000 per week and in Phoneix the banks currently own 58,000 homes. While we were there the newspaper reported that in Phoenix another 50,000 homes commenced forcelosure proceedings in September! The more properties banks own (which are held vacant) the greater rental demand will become.
People are walking away from their houses due to ARMs loans (adjustable rate Mortgages) which saw people in "Honey moon" rate loans which have now reset and renting a home down the road is a cheaper option. Unlike Australia, loans in the States were non recourse so people aren't liabile for the difference owed if their is a shortfall should they walk away (after posting the keys to the bank). Their credit is impaired but they don't care.
There are real bargains starting from US$5,000 in some states and you can now pick up properties in Phoneix starting from US$25,000. But like any investing whether here or OS you need to do you research, build your team (property managers, realtors, accountants) and be aware of the risks – plus have your exit strategies on the properties and how to get the money back into Australia.
We intend to go back next year as we have US bank accounts and after discussions with Bank Of America we will hopefully be able to get 80% lends from April despite being a foreign alien.
Regards
Leonie
