Hello All. We currently have three properties around Perth but are very interested in cash-flow positive (now that our service-ability is getting very small)Anyone care to share the top towns in WA in this respect?
Cheers,
Vinny and AmmaMy nomination is Karratha for +ve cash flow properties. I like Broome as well.
Hi Vinny,
Check out towns like Esperence as well. Properties above the 26 parrallel have up to four times the insurance premium due to cyclones etc.
Hamish[
]Hi All,
I spent a bit of time in Manjimup yesterday (southwest, near the lovely Karri forests). There were five properties that I viewed in less than half an hour that satisfied the 11 second rule.
The only thing that makes me hesitate is that the local economy has been hit very hard by the reduction in allowable native forest harvesting. Finding and keeping tennants may prove challenging. No definate new industry appears to be on the horizon.
Any thoughts on Manjimup?
Cheers,
Brad
I have 2 properties in Broome and although prices are high, rents are also high, but don’t actually satisfy the 11 second rule, unless you purchase at the caravan park, can buy a site for $40k, rents out for $90 to $110 pw. Hamish is right, Insurance is high and shire rates are hellishly high. Am just lucky I bought before the 2000-2001 boom and have made good capital gains which I can use down south somewhere to hopefully positively gear.
What about Bridgetown? Or Albany?
I used to live in Murdoch in WA.
I’m now in Sydney and so out of touch. What’s the property market like in WA?
As “newby” suggests I really haven’t too many clues but what is the 11 second rule???/
If you don’t ask you will never know!
[?]
Hi Kimmy,
I looked into Bridgetown a couple of weeks ago. They have actually had quite high capital gains recently, and despite mining layoffs in nearby Greenbushes have a tight rental market. I could not see any places that jumped out at me for the 11 sec rule. Prices have been pushed up by the holiday home market I am informed. Greenbushes may offer a more attractive cash flow alternative, but downside is it is not a very nice town and capital gains and tenancy may be disapointing.
See my post about Manjimup though for another potential location (would appreciate views on Manjimup if you have any – am new to the SW myslelt).
Cheers,Brad
I have 2 properties in Broome and although prices are high, rents are also high, but don’t actually satisfy the 11 second rule, unless you purchase at the caravan park, can buy a site for $40k, rents out for $90 to $110 pw. Hamish is right, Insurance is high and shire rates are hellishly high. Am just lucky I bought before the 2000-2001 boom and have made good capital gains which I can use down south somewhere to hopefully positively gear.What about Bridgetown? Or Albany?
Hi Brad,
Thanks for that, you are probably right, I have had a look and couldn’t find anything with the 11 second rule either. I’ll have a look at Manjimup also, and what about Balingup or Boyup Brook or Hester? I think they are all pretty small, but not too far from bigger towns. I’m a bit like you, don’t know the south west too well. Will be going down there in November so hope to check things out a bit then.
Kim
Hi Kimmy,I looked into Bridgetown a couple of weeks ago. They have actually had quite high capital gains recently, and despite mining layoffs in nearby Greenbushes have a tight rental market. I could not see any places that jumped out at me for the 11 sec rule. Prices have been pushed up by the holiday home market I am informed. Greenbushes may offer a more attractive cash flow alternative, but downside is it is not a very nice town and capital gains and tenancy may be disapointing.
See my post about Manjimup though for another potential location (would appreciate views on Manjimup if you have any – am new to the SW myslelt).
Cheers,Brad
I have 2 properties in Broome and although prices are high, rents are also high, but don’t actually satisfy the 11 second rule, unless you purchase at the caravan park, can buy a site for $40k, rents out for $90 to $110 pw. Hamish is right, Insurance is high and shire rates are hellishly high. Am just lucky I bought before the 2000-2001 boom and have made good capital gains which I can use down south somewhere to hopefully positively gear.What about Bridgetown? Or Albany?
Thanks guys!!!! heaps of food for thought.. let you know how it works out!
To max1999
Gidday there,11 second rule
Take the rent and divide by two, then multiply by 1000 and this is an indication of what the purchase price should be to give you a fair return.
Take into consideration the area and other circumstances when assessing a property.
Good luck,,
Spider
To Max1999
11 second rule:You need to read the book “0 to 130 properties, etc…” page 30
As another newbie i may as well ask another newbie type question!
What would you class as a fair return? do you mean profit after maitenance and mortgage an other misc costs or taken out?
To max1999
Gidday there,11 second rule
Take the rent and divide by two, then multiply by 1000 and this is an indication of what the purchase price should be to give you a fair return.
Take into consideration the area and other circumstances when assessing a property.
Good luck,,
Spider
Ummm,
According to my in-laws (and they may be biased coz they live there…) but Albany is up and coming at the moment. It has been proposed to make the ALbany, MT BArker area into the next MArgaret river area with all the vineyards poppin gup.For EG, in-laws bought their farm 20km away from Albanyf ro$120K (I think), the next door neighbours farm was sold for something near a million apparently. Mind you it was quite a bit bigger but the quality of the farm was excellent for vineyards etc, etc. So it sounds like they are on to a good thing there.
As for the town. Well, there are a couple of houses that clear the 11 sec rule, but few and far between. Might be better for people that want to profit via renovations. Lots of old 50’s houses etc.
Cheers.
Steph.Here for a good time not a long time, just do it!.
Large towns in wa are few and far between.l mean those over 5ooo or more.look seriously at the wheatbelt area.they are small towns but the ones that are a reasonable distance to perth can offer good returns.residents in the town have good access to perth via bus/train.they are very low income earners mainly pension/govt payments.they do enjoy the quiet of the country as well.l know of a gentleman 6 years ago purchased 30 props in these small towns most in the price range of 10/15000. all small wheatbelt towns within in the 2 hours of perth.great rent return he now lives very comfortably in a prime beach position in cottesloe and hasn.t worked a day in years he is actually quite boring these days as all he has got to worry about is the bl…y fishing look beyound the square that others put before you.cheers lynnem
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