Forum Replies Created
Hi
Thats a keeper Garg in my book unless the following are issues:
1. Its a dud property – Lemon. eg leaks water – costs a lot to maintain.
2. You really really need the money to upgrade – eg if you were considering buying a house and you needed the cash from the unit than sell it.As a general rule keep properties and don't sell – thats my plan anyway. Do the maths yourself.
I don't know the area that well but given its close to Parramatta it should be pretty good.
All the best
The Bish
I would definitely buy the mixed use – the value of a property should reflect its potential usage – eg in respect of zoning in this case – mixed use zoning having a higher value than residential
Cheers
The BishThanks for the feedback and input everyone.
I think I'll be making sure this is all incorporated in the rental agreement when I get the next change over in tenants and make sure the agent follows through.
If water charges are going to increase faster than rent going forward I want to make sure my net return isn't impacted.
Thanks again
Agree totally with the last response, because for years I "treaded water" also then I worked out what I call my 10YP (10 Year Plan) and a lot of things all of a sudden became more focused.
I started by working out where I wanted to be financially in 10 years (that was back in 2002) – ie in terms of annual income from investments. My main goal is to stop working for someone else at the end of 10 years.
From the income figure I then calculated the net asset position at the end of 10 years required to acheve that income at a nominal 7% return.
I then had an Asset $ target.
From there I went through each of the 10 years working out the assets needed to be purchased, making sure that the total after considering an estimated growth % ended up on target. This was obviously a rough guide but I did consider where the real estate market was at the time (2002 – Expensive) and ensured that most of these purchases would be done around 06/07 – which has worked out well. I also invest in shares so part of the plan was buying those reasonably aggressively between 02 – 07. If I was working out a new plan now I'd probably have that in reverse – property now (I invest in Sydney), shares later.
Anyway thats pretty much in a nutshell.
Bottom line – absolutely gotta have one to be successful!!!
All the best
TheBishHi Anthony
You actually haven't provided enough info here for me to be able to say whether this is a good deal or not. However, if it were me I'd check comparative sales. Check out how the price compares to similar properties in the area – agents will normally have this info.
Future growth is most important – I assume this is a house, if so great, land appreciates, buildings depreciate – no units please unless it has a special feature like waterviews.
The rent looks pretty good at that yield, just make sure your comfortable with the negative cashflow level.
Good luck.
TheBish
Hi Edison
Thanks for posting this. I'm an investor operating in the Sydney market and I think this provides a great opportunity to enjoy above average returns in those areas of the city.
In fact there is a great map in the Sydney Metro Strategy (can be found on the State Govt Planning Dept Website) that shows nicely the new infrastructure planned for the future – absolute gold for us investors.
Have you identifies any particular suburbs that may benefit from this – I've been told the areas around Rouse Hill are potentials.
Regards
TheBish
