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As you are from Kal, you’re aware that it is a boom or bust town. When prices of gold & nickle are high, rentals shoot through the roof & vice versa. Generally, fibro houses are very expensive to work on. It is also very difficult to get tradesman who wants to work on them. Older houses generally have more maintenance problems with plumbing & electrical work. You’re better off to try locate a more modern property.[
]Thankyou very much for your feedback. You have assisted me decide on my investment strategy greatly.Many thanks
David Osborne
The margin you have built in to this property (20%) would seem to be an attraction straight away. I would imagine the repairs you talk about would have to be of a basic nature – otherwise our government wouldn’t let you live in it…..or would they?
If the repairs required are substantial you may end up with lots of depreciation to get rid of, and your cash positive out the window.[
] The government would let you live in a house in need of reasonable repairs. What you have said about the costs of repairs is what was going through my mind in regards to the advantages and disadvantages of purchasing this property. Thank you very much for your input, you have assisted me in making up my mind in regards to the strategy I should follow.Ie not purchase this property.Many thanks
David Osborne[
]
My own view is that Kal could be a promising place for cashflow positive property with yields of 9% common. Prices are low, average wages are high and there are many renters.You can get a small 2 or 3br brick/iron unit near town for $70 – 100k. Rent would be approx $120 – $180pw.
Have just been there myself and the vacancy rate is currently low (approx 2.5%). I also sat in a real estate agents office for a while and there were people coming in looking for rental property.
Do your due diligence first, but after you’ve done this, I recommend you talk to Alistair Lavender at Fyson Strachan & Co in Hannan St who should be able to help with finding a place. Tell him I sent you!
One other agent I spoke to said I’d not be able to get a place within my budget. What he really meant was he had nothing listed himself – the local weekly property guide had several properties that met my requirements.
Peter
[
] Thanks Peter for the advice, it is very informed, and I will be following it as soon as I have finished my e-mails.Many thanks
David Osborne
]Thankyou very much for your feedback. You have assisted me decide on my investment strategy greatly.
