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Great points.
Get out there and do your homework. befriend the local realos. They will call you with potentials prior to listing. “Anything with high yeild and “unusual” is something Id like to know about”…plus any other requirements.
Await rents to rise. Capital is up nationally so its time for rents to push higher. Buget for negitive gearing but leave a slip stream reserve to get you through till rents go up…only if its close. DOnt go crazy.
Add another room from a dining room increasing rent. Spilt a big lounge. Furnsih. Barter. rent to students by the room.Add perks (pay this rental for three years and you keep furniture) Use your imagination! Dont expect others to do the work for you. Its not an easy job. If you want an easy job go sit on your ass for another ten years till CF++ return in hordes. Thats easy! But if you want the taste of finacial freedom doesnt that take time and work?
And if this is too much pluck courage and invest offshore. Go somewhere where the cycles producing cashflow. You arnt negitive gearing so why not?
Mind you patience and persistance pays off. You want to be rich? Youll find a way.
I just picked up a six unit corner site with four houses (well..house-ish) all tennanted and cash flow positive for $265k. Plus I can strata and sell for $400 odd with little work and in Kalgoorlie where stats say its population is growing 2-3 times that of Perth!
Work at a job and earn a pittance like most of the flock do or work at finacial freedom. The only person stopping you is you.
They are out there alright…but do you have the time/motivation to find them? Your call!
Great points. Im still not sure on Sydney long term.
However a year ago many people in here where boo-hooing Perth. I bought in anyway and am happy. Now more people here are even more concerned about Perth but don’t check the facts. I admit with many expects here. You have many people on the east coast becoming experts on Perth property but in reality they don’t live here and know anything about it. I may rub most up the wrong way here but its true?
Let me sought things out from some one who does live here. Perth isn’t about to crash. That’s rubbish…..why?
1) Firstly its surging on a wave of a metals boom. Somone here mentioned the metals will run out and it will become a ghost town. Id love this person to come back in 20 years…then 50yrs..then 100yrs……cause that’s how much resources are here. Its not drying up. Theres more iron ore here then anywhere in the world or so Ive read so if we run out the worlds in trouble. Id be more concerned about that. And everyones focused on oil supplys running out but has anyone read anything about iron ore? If WA runs out of metals we will crash everywhere as most other states are leaching off this resource to get by…and driving our economy and the house price above your head! Thats why many financially savy people here want to become a seperate country and stop being sucked of this enormous wealth by the rest of Australia.
2) Affordability. Isn’t affordability the trigger for downturns? Well the average salary here is now almost equaling Sydneys….due to surpass it soon. Yet the medium house price is around $100k less.. Before deductions that’s almost $200 less on your repayments/costs on the same medium Sydney salary….sounds more attractive than Sydney to me?
3) History. Last metals boom we had was in the sixties. Perth rose from about 60% of Sydneys house price to almost equaling it. We are still 25% shy of Sydneys medium house price. And considering experts are saying this will be the longest and strongest metals rush in history due to the Chinese long term shift in infrastructure. Would it be logical to assume it may even move further than this 25%?…perhaps…but either which way the partys not over yet. So no ones panicing here…hence why properties are up.
I will admit that when the metals boom is over then Id downgrade my holdings but in reality this isn’t going to suddenly happen hence no sudden crash. Time will tell and history is our closet example.
Im not buying in Sydney as its like catching a falling knife. But then Im not buying in Perth either even if theres more to come. Im a safe invester and want long terms trend to be on my side. Im holding Perth as its almost the same as investing in the Chinese economy….and no ones bothered about things crashing there (more like trying to cap it from moving too fast)
Positive Perth Person
