Forum Replies Created
Hi all
anyone interested in Rosebery should be very wary. firstly this property will not be cash positive 50K for 100pw will not work if you want properties that put money in your pocket each week.
Secondly i’d be very carefl investing in a tiny town that lacks infrastructure and has seen a 55% population decline since 1976.If interested in Rosebery do a search on this forum under “rosebery” and see what people have to say.
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Yorker
you said that you used to own there but sold out about 6 months ago BUT on this forum on the 2 july you said
I’ve noticed a few positively geared properties in this region. Anyone know the future of the mining industry there?Then everyone warned you about this town.
Even though people warned you 5 days later you were advising people toHit Rosebery, Tasmania HARD. Go son!.
Then on the 20th of August you were putting up posts again about Rosebery.
Now today you are going full on Rosebery sayingI’m looking to get back in due to this new information that has come my way. Going for additional finance approval.You have to admitt it looks mighty suss ?
If the mine isn’t about to employ lots of workers i’d be selling not Buying in Rosebery.
Anyway the properties there aren’t cash positive in fact they will be negatively geared. $100 pw on a 50,000 property isn’t worth it. Lets do the sums
Say you have 20% deposit and loan 40k at 7.25%
Interest payments will be $2,900
Rates (high in tas) my guess $1,200
Insurance 300
Management (is there a manager in town ?? 500
Repairs (should allow at least) 300
Total Cost of ownership $5,200
On rent of 100 per week lets allow 50 weeks of letting that 5,000
So this deal isn’t cash positive it is a negative geared deal. Best to invest in Cash Positive properties i always say.
So verdict do Due diligence with the view of selling in Rosebery, Hope that helps Yorker. Or were you already aware of the figures ?Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Yorker
just be careful when your down there next not to go fishing or swimming
Pasminco Rosebery Mine
PRM operates in the catchment of the Stitt River. The Stitt River had become severely degraded over many years by pollution from townsite sewage effluent, silt in stormwater and from acid seepage from historic mining areas. The river degradation was characterised by high levels of nutrients and faecal organisms during low flow periods, and high turbidity during storm events. There is sufficient evidence to suggest that the river was largely void of aquatic life within its lower reaches prior to implementation of the partnership agreement.http://www.deh.gov.au/industry/corporate/eecp/case-studies/pasminco.html
In fairness to rosebery the article mentions they have started to clean up the sewerage and pollution and the future cleanliness is a priority of the mine.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Yorker
just before you invest in Rosebery you should be aware of some data
Population trends of mid-size urban centres (1,000–19,999 people), 1976–01Population centre Rosebery
1976 2,534
1981 2,675
1986 2,102
1991 1,637
1996 1,439
2001 1,115Change (%) 1996–01 –22.5
Source: ABS Census Data 1976–02http://www.rpdc.tas.gov.au/soer/indicator/55/index.php
Total change -55% Is there a heap of vacant homes there ?
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Yorker
come on ![biggrin]
you have been on about this tiny little town called rosebery for ages, i know your not that stupid to be putting a post on the forum before you have bought.
How many do you really have for sale Yorker ?
oh for the record this is what the abs saysabout roseby
The highest rate of population decrease was recorded in the Urban Centre of Paraburdoo in WA (39.2%), where the population fell from 1,975 in 1996 to 1,201 in 2001. Decreases over 20% were recorded in Norseman (30.0%), Newman (26.3%), Leinster (23.9%) and Kambalda West (20.8%) in WA, Dysart (28.3%) in Queensland, Rosebery (22.8%) in Tasmania and on Christmas Island (23.6%).http://www.abs.gov.au/Ausstats/[email protected]/0/2d3414bffca7b97aca256cf4007d4d3c?OpenDocument
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi yorker
i know in my part of the world its a great strategy, if people have got the time and the cash there’s good profits to be made. I’m getting too lazy these days to do the work myself but find i can still pick up homes where i can pay others to do the work and still make a dollar out of it.
For my own investing i’m looking for these types of deals.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi somethingfishi
you are basically right you can’t do the deals that steve’s first book talks about. Basically the market had changed even before the book was published. Sadly i had to move to NZ to find deals as they were no longer around in safe markets in OZ.
I can’t remember steve saying that you should buy locally ? perhaps thats the best option but i know steve buys overseas if the figure stack up.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Well guys
the finals hot up this week with the four best teams left standing.
Have the saints done enough to erase the memory of the Brisbane thrashing ? or will another quality side this time Port Adelaide hand them out one again? Can geeelong overcome the awesome lions ?
I still think we are headed for a Port v Brisbane GF- and what a beauty that would be (as long as port doesn’t win).[biggrin]
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Martin
email me and i’ll supply you with some good contacts, but just remember that the solicior doesn’t have to be in the city that you are purchasing in.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi madcat
also try http://www.realenz.co.nz
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi guys
sorry to disappoint you but the NZ accountant doesn’t know what he is talking about. Sure the NZ stuff is correct but you will have to pay tax on the capital gains in Australia. This issue isn’t a NZ one, its an australian tax issue.
sadly there is a lot of missinformation by accountants because they don’t understand the complexity of the Australian side of the matter. My accountant here in NZ has spend a huge amount of time understanding the complexities (sadly i’ll have a huge bill), if you want his details please ask me.
There is little way to legally avoid CGT unless you move to NZ and become a NZ tax resident. Yes illegally you may be able to not declare income, but you could also fail to declare capital gains made in Australia (at your own peril)
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi karen B
like kay i’ve never done any wraps. all the properties i’ve bought in the past 7 years have been cash positive. However i haven’t bought any in Australia since about July last year because i couldn’t get the returns, since last year i’ve been buying in NZ because of the returns. I’ve sold about 20 properties (in OZ) over the past 18 months and bought a similair number in NZ.
Kay as far as cash positive on 6% that is a bit of a joke, because it all depends on how much cash you put in. If you pay $300k cash for a property that at the end of the day has a profit of $1000 sure its cash positive but the return on investment is .3%, This is hardly the return i’d want on my money. Sometimes i’ve seen deal that show a 10% yeild that in reality aren’t cash positive.
regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi sue
thats some interesting observations and comments, i know people who have what i’d consider quality houses as investments and they have about the same problems that i have with my low income tenants. BUT there are some areas that are going to be worse than others.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Kay and
that is very interesting, i haven’t seen the story. I can’t deny his claims but i’d be suprised if they weren’t in the middle of nowhere. These deals aren’t available anywhere within 500km of Melbourne and probably Sydney also. As you know i’m a stong believer in buying cash positive but i realy wonder if that type of investing is worth it.
Mad-Cat in NZ the retruns vary a lot larger Cities you van find deals for 7-10% and smaller places 10-14%
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Del
thats great that we are IP neighbours again first Stawell (Vic) and Horsham (Vic) and now Wairoa. I didn’t know you owned 2 there , well done. By the way i have sold all my IP’s in Stawell and have 1 left in Horsham (as you know there is nothing wrong with these areas i’m just looking for better returns).
Back to Wairoa, Price have crept up a bit since May, but i can’t make comments about what yours would be worth because i don’t know them, Sorry.
What streets are your in ?regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Trisha
i know lots of good agents in Victoria, what areas are you wanting them in ?
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Madcat
you will find that these types of returns (40k for 150 pw) are not available in NZ, this is a 19.5% return.
Jo i’d be very suprised if this was available anywhere in OZ also ??regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi all
well Richmond is very unlikely[angry2]
But i’ll go with Brisbane, we get the friday night game on tv here on Saturday morning and those Lions were AWESOME.
lets hope Port Adelaide doen’t destroy a good final series, they are a worry they just might create some head aches for the rest. i see a Brisbane – Port final
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi jayhayley
i just want to add some things to jo’s comments
to work out capital gains you work out the selling price less all selling cost- including agents commission and all legal cost. Then you take away all purchase costs, this includes the original amount you bought the property for plus all legal costs and any repairs you made to the home before it become a rental property.
This will give you your Profit on the home which is taxable as Capital gain. If you have owned the property for more than 12 months you get half the profit tax free. You add the capital gains to your taxable income and pay tax on it as if it was earned income at whatever tax bracket you are now in.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Kay
i’m sure the trees will be happy knowing that they will be turned into “value added” products rather than Pulp.[biggrin]
Yes a trees life aint what it used to be.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
