Hi y’all. Was just wondering if anyone had anything to report on the Cootamundra or Dubbo/Wellington areas as far as +ve cashflow IP’s go. If so, have you had any problems with tenants and what the rental demands are like[?]
Thanx again[
]Hi Maximus, I’m experimenting in the Dubbo area at present. I bought a 3br fibro house for $78,250 which will rent for $145 p/w. I bought it as a first attempt at a wrap, but with the knowledge that if I stuffed everything up I could still rent it positively geared (not quite the 11 sec solution, but close enough for me) Yeah, I know I shouldn’t have bought it first and then try to find a buyer, but the risk seemed OK to me.
I have been advertising it for a few weeks (prior to settlement) and most enquiries are coming from people on pensions, gov assistance and they don’t quite make it over the income line. However I can afford to carry the property for around 3 months before I go to Plan B which is to rent it for (say) 12 months and then try wrapping it again.
Around the same time I bought a 3br brick veneer house in Orange to wrap and ended up with a cash buyer 3 weeks later for the (increased) asking wrap price. Took the money and ran – about 30% margin realised. This just demonstrates how fast property is increasing out west – the ripple from Sydney seems to have just hit out there and prices are going crazy. Agents reckon that they are selling on the same day as listing and if my experience is an example, that seems about right. Remains to be seen how long that lasts.
Keeping fingers crossed that Dubbo will also experience the ripple very soon.
Dianne
“Make a decision, take the risk, pay the price, or reap the rewards”
Hi again guys. Re Cootamundra, I have spoken to a couple of Real Estate agents in the area and have been told that a decent property will cost $100–120000 to buy and should rent out for $140-160 a week. By these figures it means I would have to put in approx $$50000 as a deposit to make it +ve (thats also allowing for rates etc). What are your thoughts on this. I’m struggling to find cash flow positive properties [
]Look harder, they are there.
For example the one you said would need a 50K deposit could still be wrapped to the right buyer to generate positive cashflow with minimum deposit. It’s just a matter of matching the problem to the solution
Hi again guys. Re Cootamundra, I have spoken to a couple of Real Estate agents in the area and have been told that a decent property will cost $100–120000 to buy and should rent out for $140-160 a week. By these figures it means I would have to put in approx $$50000 as a deposit to make it +ve (thats also allowing for rates etc). What are your thoughts on this. I’m struggling to find cash flow positive properties []
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