hi taylah,firstly I wouldn’t call Cairns a rural town….
yes you are right about the lower end of the market, in my experience the better returns are found there.
It sounds like you are looking for +ve CF properties in the places where you find negative geared ones.
If you are ‘deciding on an area’ based on “growth, population and employment’ then stick to capital cities and forget about +ve CF.
Why not try ‘deciding on an area’ based on the numbers. It might not have a large population or much in the way of growth, but it might be a brilliant place to buy a +ve CF property.
I mean, if you can get it all in the one property, well and good, but I’m just trying to say, don’t buy (i.e.) beachfront and expect it to be +ve cashflow
Hi MM, i am not trying to buy beach side, cairns just happened to have a unit with great returns, but it turned out the the whole block was forsale at a price I couldn’t afford, but it was pos cash flow, I donot know how to decide on a area, every town I have searched the median house price is too high to get a return,thats what I want to know, how everyone else is determining an area that pos cash flow exist, I mean surely not everywhere, like you said, forget coastal and major towns, so what is the next stratergy to locating an appropriate area.
Hi taylah111Don’t look at the obvious either, I found a block of units for sale in Armidale far north NSW, 13 units and 5 storage sheds.
On the surface the deal looked like this
13 x (approx) 110pw = $1430/2×1000= $715k
Asking price $675k not bad so far, the 5 storgae sheds were also renting for $150pw each
So now we have 1430 + (150×5) 750=2180/2×1000 = $1,090,000. now thats a deal.Properties can have value other than rent, I am buying my 3rd property in 4 months this week, they all meet the 11 sec sol exactly. They are out there.
I pick my towns by doing a general search on Realestate.com for the cheapest houses and see where they are … then I research the town to see if it meets my criteria. It would be nice if they were all in huge towns with no risk but reality is always different.
Good luck
Leigh K[
]Carve your own path and lead the way …
Hi leigh, thanks for your input, I too search realestate.com, but have to type in locations to get anywhere, which brings me back to my question, how do you go about selecting a location, I can;t tell you the hours I have spent on that site going nowhere.
Hi Taylah
At realestate.com you don’t have to type in a location. you do have to choose a state. You can do a search based on price ie 0-200K, and it comes up with everything (although lots of auctions as well).
Leave the *SHOW ALL SUBURBS* tag checked.
Cheers
Mel
]
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