Hi Benny,
Thank you for the response.
1. It is a 3 bed, 1 bath on a 600+ sq ft land. Yes flood report was studied and last 2 x instances was noticed. Due diligence was done using a BA in Brisbane. BA believes it is a great buy. My MB (also and investor) also thinks it is a great buy. I just wanted to double check.
2. We negotiated $15k less than ask and then did a B&P. After B&P report further reduced the amount required to fix them. Finally got another 10K reduced (to mend timber in wall, Paint and lay carpets). Only thing we couldn’t get was early access to property prior to settlement.
3. It is less that 1 km to 2 x schools, 5 min drive to shopping malls, 3 km away from rail station.
4. Kitchen is alright and nothing is required.
5. I am in Sydney so will be engaging a property manager.
regards
San

Hi Richard,
80% new loan and 20% from the principal residence equity. So its 100% Loan. I will be using the equity to cover the acquisition cost too.
Regards
San

Hi KGV,

Thank you for your response. I am after some input to know which location will be good for buying an IP (house) in Brisbane. My budget is around $400 based on borrowing capacity. I am also after positive geared property. I am looking at net yield.
In my expense I include the run cost + interest on (100% loan + deposit + acquisition cost)

My second question is is it possible to get properties with new rental yield being positive or neutral or is it a myth.

Than You for your help.

San

thanks all.
I always come and stop at the point of decision – where to buy and how to identify the positive cashflow property.

Is there a logic or method to evaluate the LGA, Suburb, street to identify the property?

I generally us the historical data to find growth and look at the current properties at market for rest to evaluate yield. I use approved govt development planning/population forecast in the area to look at growth prospects and demand in future.

regards
San

Thank you gents.
Is Adelaide a good place with good cap gain prospects? This property I am looking at is negatively geared now and is at Daw Park, Adelaide. Its 8 kms from CBD. Its a 3 bed 2 bath house in good renovated condition. asking price is $640K and can be rented at $450/wk.

regards
Santhosh

cheers guys.
@benny, @jamie, Are you investors?

Hi Jerry,

I was looking at suburbs in 10 – 13 km radius of the CBD. Suburbs like Sunshine, Altona, Frankston etc
BAs charge 10 – 15k and was wondering will I get the ROI.

cheers
San

• This reply was modified 8 years, 3 months ago by  San.

Cheers guys. Thanks for your valuable input.

Hi Terry,

Thank you.

regards,
San