Forum Replies Created
- Jpcashflow wrote:Hi all im preparing for a big year next year and have been doing research looking at alot of properties. i have been doing some numbers and the properties all look like cash eaters rather then postive providera betime you pay stamp duty you are left out of pocket is this a common thing at the moment rather then borrowing 250k for a home that returns – why not use money to buy a bussiness if any one can show me a way to either return a postive or a break even that would he great i have been reading steves books and i am pumpes up and hungary again but like he points out you need to get that makes.you.money
Hi Johann,
I'd say keep looking, keep researching and/or looking in other areas. You may also be able to negotiate a significant price discount in this market with houseprices dropping and many places passing in at auction. If you are able to purchase a place below market rates and add some value via a renovation (paint job, replace carpets or bathroom/kitchen or larger scale extension) then you may be able to artifically raise the rent which will also improve your yields.
Happy hunting.
Brischris wrote:hi guys. we are interested in a property west of toowoomba. the vacancy rates are low about 1% , good growth etc. but checking on the web some house s in our range seem to be available for rent for a long time – over 2 months. are there other factors we need to take into account when looking at small towns. also when can i find specific vacancy rates for price bracket. thanks chrisHi Brischris,
There could be a number of reasons why property has been on market for a little while, could be priced too high, bad area or dated interior, small rooms etc. In my experience, in small towns the cost of entry is a lot lower and therefore the yields tend to be a lot higher than capital cities, although this is offset against lower capital growth than capital cities.For small towns, vacancy rate is worthwhile looking at, but also what is driving the town, ie is the main industry/employment mining or manufacturing (if this closes down-peole will move away). I'd look at if there is potential or encouragement for businesses to move there in the future, any changes to highways (some country towns in victoria which used to be on freeway) are bypassed now with new roads. Also how close is it to main cities as many people now are doing sea change and moving out of big cities to getaway places on weekends or don't mind commuting.
Cheers
