hey Pinki

Let me guess – since posting ‘your’ photo you have had a few PM’s.

Am I right??????

‘Eat rich food, barbeque a yuppie’

Kay

Without trying to sound too negative – I completely agree with the ‘no +ve geared places left in NSW (or most other states)’. Unless you have the spare 20% cash to inject into it at the start, there is bugger all left. I was definately 2 years too late to get into it and was too busy finding two -ve geared props (Syd & Bris) – good cap. growth though.[^]

Sure I can buy quite a few in mining towns that have very little life left or towns with declining population, but I want to make sure that in 5 or 10 years time I still have a good investment. Most regional centres have agents espousing 6 – 7% as a great return and the fact is that these properties are still getting snapped up within weeks (or days) of listing. There are obviously city people still happy to purchase these even it means -ve gearing them.

As I have mentioned in another forum tonight, I am going to offer on a prop tomorrow that is -ve (about $15 a week). I know that goes against everything that is said on the forums but I am also a realist. I think I can make it positive within 12 months with a little bit of work.

I guess I am coming from it at a slightly different angle too. I have heaps of equity but no spare cash to use as a deposit. Therefore i need 13 – 14% return to get a +ve geared prop off the ground.

I have also offered on a prop elsewhere that is negative (again only $15-$20) but as the house is about to fall down, I am looking at building on it. I can get the land about 20% under market so I hope in 6 – 12 months it works.

s I said at the top, I do not mean to be negative, in fact I am still optimistic when searching, but I am a realist.

I am wondering how many people will say to me ‘you have lost the vision’ and ‘there are plenty of places still out there’.

Just as a side note; I think there will be glut of properties on the market soon if the rates rise. All these properties that have been bought by city investors that are -ve geared. There will be plenty that will not be able to afford them.[^]

So back to the original question Richmond; I think there will be some more around in the next 12 months but certainly not in the same numbers as 2 years ago.

‘Eat rich food, barbeque a yuppie’

I can give you the picture even clearer. She was 21, gorgeous and her name was Tiffany. What more can you ask!!!!

‘Eat rich food, barbeque a yuppie’

Goodluck to you cheersnbeers. I congratulate you on finding such a place and I wish you luck with the tenanting side of things too.

Can I ask what the 4 x 2 bedders cost you all up?

‘Eat rich food, barbeque a yuppie’

I can post now too. Finally – but all the witty things I had to say last night will have lost their effect coz they are too old!

Pinky – I will update soon and add photo. Although I think the one I haver now is pretty cool.

‘Eat rich food, barbeque a yuppie’

In terms of cash flow positive, you will be VERY VERY lucky to find a place in regional NSW unless you have a sizeable deposit (I myself are looking for +ve with borrowing 105%). I have just spent three days in the central west and there is NUTHIN around that is even close to +ve. 12 months ago yes, but not now. Even in towns around 5,000 pop, there is little to no chance of finding one. There were perhaps 30 other ‘investors’ like me in the towns on Monday and Tuesday looking at the same.

I have not given up hope though. I am looking at other ways to make money in the property market.I am also of the opinion that as long as I do my due dilligence right, an IP in certain towns that is currently losing perhaps $15 a week can become positive (and capital gain) within 12 months. I am about to make an offer on a such property I saw last Tuesday.

Good luck and perhaps you should look outside NSW.

‘Eat rich food, barbeque a yuppie’

Are you refering to the Hellfire club near Central Station. That brings back memories………[}][}][}]!!!!!

Just jokin[]

‘Eat rich food, barbeque a yuppie’

Karan

I also live on the North Shore of Sydney and have realised VERY quickly that there is no residential real estate that meets the +ve cashflow criteria in the Sydney region. My suggestions to you is to go outside your comfort zone into areas that you may not have thought of ie. regional NSW (and other states).

The regional areas, whilst not necessarily attracting huge Cap. gains, will certainly offer a greater chance of +ve cash flow. Yields are generally higher in regional areas.

There has been talk in this forum of some bedsitters in the Kings X area being positive cash flow but the resale oportunities seem to be not as good as your average property.

Good luck with your searching and you never now what is around the corner[]

‘Eat rich food, barbeque a yuppie’

quote:

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How much do they charge?

Matt

“If you do what you have always done, you will get what you have always had.”

“Isn’t it time for a change?”

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Sorry – Been away!

They charge:

7.5% +GST plus 1 week’s rent for finding a tenant

‘Eat rich food, barbeque a yuppie’

Hey SiS

I like your style buddy. I love the SiS rule and will use it widely. What I think a few people aren’t getting is that your rule is the 2004 rule for borrowing 100%(plus costs). To those (like me) who have no cash but have heaps of equity to buy property it will be a very useful tool.

The 11 second rule is so far out when calculating for a +ve property if you are borrowing 100%. But I guess it still has been a help beacause your SIS rule is modelled on it.

Mick INC – you said:
I don’t like your rule! Now I only have two +cf, one neutral and one -cf property.

On the 11 sec rule I had 3 +ve and 1 -ve. I like the old rule beta

It shouldn’t make any difference to how the property comes out. As long as you have calculated it on purchase price along with a 7% interest rate.

‘Eat rich food, barbeque a yuppie’