I am a real novice with investing and have just refinanced our mortgage to include a line of credit. It was at that point that I realised that I could look at investment property using the equity in our property.( It took 10 years as we were one of the dopey people to be stung by “Homefund” and had to start all over again… Oh we did get a compensation cheque from the govt …… for $46.00!!!!!)
I have heard people talk about positive cash flow properties in the Cairns area.Any ideas I have seen a property on the internet for sale for $225k with a rental return of $270.00 p/w
Being a little ‘nervous’ I looked closer to home and have seen 2 units on 1 block of land for sale with a return of $290 / wk. The cost of the property is approx $320K.
Home being in the mid north coast of NSW (2430). PLEASE can anyone shed a little light on my dilema.
Oh and just from my observations on this site here for the last hour or two, I think I will learn heaps… so thanks all.
Also is there a dictionary for all the anacronyms used???!!!Regards All
Mickeydrippin[
][]one of the first things i learned at the Property Masters (hope it is Ok to be telling this) is that you can’t fit one single strategy to every property. like let’s say if you want cashflow positive with high returns and you are looking locally and you live in paddington you probably won’t find them very easily. however renovation, flips, might work well, capital gains…
so you have to figure out the area you are studying, if it’s going to work for what you want to do. (i.e. do you want to be funding it each week from your job if it loses a bit each week, or not)
i.e. either fit a strategy to what is happening in your area or else find an area with properties that fit your strategy.
Re all the abbreviations, IP is investment property, that’s the one I couldn’t get for a minute when I started, as for wraps. flips, lease options, they are explained fully on this site on the home page.Hiya Mickeydrippin,
Sounds like your ready to jump into the investing game, thats excellent. Firstly though you need to work out what you want to achieve from your investing. That is, do you want to obtain immediate passive income, capital appreciation or tax reduction etc. Then you can work out what is the best strategy to achieve those goals. Like Minimogul said, there are many different strategies. You need to find the strategy to suit the properties you find, and the properties to suit the strategies you are comfortable with.
For your $320K units are they able to be renovated cheaply to improve the value, maybe you could sell them again, or increase the rent??
There are positive cashflow properties in every area, have fun finding them.Best Wishes,
Justin x
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