isn’t broken hill suffering from the biggest population decline in the country since a lot of the mines have shut down? Sure it’s got cheap houses… but future prospects aren’t all that great I wouldn’t have thought.
cheers
r
There’s really no reason why you can’t do all three at once, but we’ve no idea on what your borrowing capacity is… clearly having 140k in the bank helps a lot, but I guess it depends on your earnings as well…
I love it over near Woodend, but we ended up buying a 60 acre place near Kilmore (better prices over this way, and just as scenic)… the lvr here was 70% so keep that in mind… I think the lvr goes up if it’s over 10 acres but I’m not 100% sure… one of the brokers would be able to tell you…
My first tip would be to become friends with the search button at the top of the page. If you’ve read Steve’s book, there’s tips in there on where to look for postively geared properties… one tip from me, don’t rely on real estate web sites… they are a starting point and nothing more. Spend time going back through the discussions, because various places have come up from time to time… I know them, but I’m not going to say where they are, since it’s more worthwhile for you to do the work and research for yourself… you’ll be much better off…
They’re not the ones on L****ey Street by any chance are they? 1x 1br (fully furn), 1x 2br, 1x 3br, garage too? Asking 140k? Let me ask you this… if you have never been to Cobar, how do you know where they are situated in the town in terms of schools, shops, etc… Don’t take the agents word… you are from out of town and they know it, and they play on it. You say you don’t know much about Cobar other than your search on google… I’d be doing a lot more than that. I notice you are in NSW… why not go for a drive out west? Take a day or two off if it’s that important… just don’t rely on looking on the web for all the answers… sorry if I sound bossy or something, I just worry when people appear to be rushing into things. Take your time and do your due diligence.
At that rent (310pw) it sounds like it’d be in the upper end of the prices for rentals in Cobar… if it gets vacant, it will be a bugger to fill. No buts or maybes… it is odds on to sit vacant for some time. There’s not that many people in Cobar who will pay 310pw, unless it’s filled by the mines, and they’re not going to be around forever.
I’m not sure I’d be paying 125k for a place in Cobar, but it’s your decision, and if you have done your due diligence and are confident with the decision, good luck to you.
Congrats too if you found the place other than by looking on the internet… at least you’ve taken extra steps that a lot don’t…
I wonder how many people will just hop on realestate.com.au and punch in a search for Stawell, Horsham and Hamilton… if it comes back with no properties that fit the solution, they’ll just say “ah, there’s nothing there”… of course, a percentage will actually hit the phones, and hell, even go for a drive down there…
As cremin said, read as much as you can… Jan Somers’ books are okay too, she’s been shot down a few times on this forum, but there’s some handy bits for people starting out…
Read, research and read some more… and don’t do anything until you feel comfortable with it… however, be sure you do do something eventually… a lot of people talk about buying an IP, and a lot of those people never follow through with it…
I can’t answer whether I think you should do it or not, because I don’t know your personal circumstances… I would say this though, is this a property that you’ve simply located through a realestate.com.au search, or have you hit the phones to find out what else is available in Cobar? If it’s just through the web, I’d do a lot more digging… not every property in Australia for sale is on realestate.com.au, although a lot of people seem to think this is the case.
Spend some time on google.com and you’ll find everything you are looking for…
Cobar’s fortunes rise and fall with the mines, and also the surrounding area in terms of drought affected farmers… You’re one of the few people I’ve come across who reckon it’s got a good feel… a lot of people think it’s a hole… Me? I reckon it’s okay but I won’t be hurrying up there to buy IPs, there’s better places to target first…
Are you looking to buy there simply because there’s cheap houses? Do you know anything about Cobar? Its main industries? Its infrastructure? You have to look past the cheap houses sometimes… they’re a good starting point, but there’s a lot more investigation you need to do.
Have a crack… but make sure you put heaps of time into finding your own answers to due diligence queries that may arise… your own sleep at night factor (SANF) is the main thing to overcome.
Personally, I don’t like financial advisors… a lot of the time they end up just trying to flog you stuff they end up getting a commission for.
In terms of buying an IP before a PPOR, there’s a school of thought that it’s better to buy IPs because the interest on the loans is deductible (good debt) whereas with a PPOR it is not (bad debt)
Having said that, I’m paying off my PPOR while trying to build an IP portfolio at the same time… we’re trying to get rid of the PPOR loan as quick as we can. In my case I’m happier having a PPOR because I enjoy doing bits and pieces to the property and having a sense of “home” but it’s horses for courses…
If the value of your IP goes up, you can still access the equity via a line of credit…
Don’t worry about missing the boat, because property, like any market, goes in cycles, and while you might feel you’ve missed the boat for a minute, there will be another coming in at another port before you know it.
If you’re researching and you come across something good, do the numbers, and if they add up, go for it… just don’t feel like you’ve got to buy buy buy because everyone else is… DON’T FOLLOW THE HERD, because you’ll be sure to make mistakes. Research, take your time and do things at your own pace…
My family is from up that way… do you like it just because it has cheap houses, or do you like it as a place because you have been there… If you haven’t been there, perhaps a trip is in order, because even though there’s bugger all out there, it’s pretty interesting…
Do some research on google to find out the future of the mines, and also economic development stats for the area… I was just looking at them the other day.
Excellent, admin… the sooner you flush, the better! [] I notice very few of the regulars have posted here tonight… hopefully they’ll be back… I will be, but I’m going now… can’t put up with this individual any more tonight. Better things to do…
I would just focus on getting the ball rolling for the minute, and just finding 5-6 IPs to get started will keep you out of mischief for a while []… Steve’s situation is rather unique, in that he got started when property prices were much, much lower… in tandem with a business partner while cultivating multiple streams of income… it isn’t solely from wraps… it’s from seminars, books, tapes etc etc…
If you get 5-6 positive cashflow properties, keep saving your hard earned to buy more and more. The value (equity) of your home will hopefully increase over time, allowing you to extend your line of credit for more deposits. The combination of savings, LOC and cash flow from your purchases will help raise more deposits… It will take time, but it will be worth it.
cheers
r
(sorry if that’s all disjointed… doing other work and am tired!!!)