Hi everybody,
I’ve been doing a bit of research on +geared properties and, on the web at least, they seem to be all over the place except Victoria. Does anybody know of a web site or other source to look for +geared properties not far from Melbourne, preferably? Also, in your opinion, what towns or areas are likely to show strong economic growth in the near future and why?
Thanks,
Richardo.
hi richardo
join the rest of us who have found it near impossible to by cash positive in Vic. ewhat sort of return are you after? i’ve found the best returns are found in the west of the state, but even then not fantastic, i haven’t been able to buy anything since June and that was in a smaller town than i would normally go for. It was St Arnaud for 27k rent 100pw (i consider this a good deal). In the previous 18 months i bought 12 properties (thats how much the market has changed).
regards westan
hi richardojoin the rest of us who have found it near impossible to by cash positive in Vic. ewhat sort of return are you after? i’ve found the best returns are found in the west of the state, but even then not fantastic, i haven’t been able to buy anything since June and that was in a smaller town than i would normally go for. It was St Arnaud for 27k rent 100pw (i consider this a good deal). In the previous 18 months i bought 12 properties (thats how much the market has changed).
regards westanDear Westan,
Thanks for your reply. It is a bit dissapointing to receive confirmation of lack of +Geared Properties in Vic. I wonder why that is? And, in answer to your question, firstly I agree that your St Arnaud purchase for 27k – rent 100pw is a good deal, I’d, be happy with something similar.We are organising a meeting in Mel. (Dec. 6) to form a group of investors. At this meeting I will comment on some of the info you’ve just given me, and I’ll be curious to see what others have to say. I’m sure good things will come out of the meeting.
I can keep you posted with the results if you wish.
Regards,
Richardo.
hi richardo
i’d live to join you guys in Melb but unfortunately i’m busy packing to move to NZ at the end of the year. i’d like to hear what you guys are talking about.
for those interested some area out in the west of the state that are close to cash positive, horsham from 90k for 155pw, stawell and ararat 70k for 120pw. smaller towns (if thats your thing ?) nhill and murtoa are cheaper. i like Mildura also although a bit more expensive (wish i’d bought there a few years ago). like Mildura i believe Ballarat still has some growth potential.
bye westanHi Richardo,
Just wondering if your meeting is open to all and any who are interested or invite only? I’d love to sit in and see what everyone has to say and what opportunities are out there for partnerships [
]Thanks
Jen[/quote]
Dear Westan,
Thanks for your reply. It is a bit dissapointing to receive confirmation of lack of +Geared Properties in Vic. I wonder why that is? And, in answer to your question, firstly I agree that your St Arnaud purchase for 27k – rent 100pw is a good deal, I’d, be happy with something similar.We are organising a meeting in Mel. (Dec. 6) to form a group of investors. At this meeting I will comment on some of the info you’ve just given me, and I’ll be curious to see what others have to say. I’m sure good things will come out of the meeting.
I can keep you posted with the results if you wish.
Regards,
Richardo.
[/quote]hi Richardo
sorry i forgot to answer part of your question Richardo
“It is a bit dissapointing to receive confirmation of lack of +Geared Properties in Vic. I wonder why that is?”i think there are many reasons why there is a lack of pos properties as compared to a few years ago. sorry you get my long answer
1st the market was way under valued.
a few years ago there were cash positive properties all over the place. One of the reasons was that the rural areas were depressed because of the city focus of the Kennet state government, it is only if you lived in the country you could see how he killed rural Vic at the expense of a vibrant Melbourne.
Secondly the State Govt (not just Vic) was selling of there state houses. For example in the Latrobe Valley the govt sold off 100’s of houses. could you imagine what that does to a market, yes prices crashed as supply outstripped demand. in some towns like Morwell they dropped 30%(supply/demand is fundamentaly what causes the market increases and decreases). i remember in Moe they were selling off 10 houses, a friend went to the auction (i could have bought some but my wife said “no not Moe” it was around the time of Jaiden Leisly’s death). anyway the 3brm homes got passed in at $21k each so my friend bought them all after auction for $19k each. (Yes the Gov’t really did that). today 6yrs later they sell for over 90k
2. the renewed interest in property
it has been a worldwide phenomonon (i can spell[xx(]). the interest in realestate rose as baby boomers all over the planet suddenly discover what others had know for years “wealth creation”.
3. another reason the lack of properties is because people such as steve Mckight and robert Kiyosaki have promoted the idea of cash positive properties, suddenly investors from the city stated to look outside the CBD. there is so much investor interest today demand outstips supply, slowley seller started to raise there expectations and prices rose while rents only rose slightly.
3.the first home owners Grant
when the fHOG came in suddenly there was a huge interest in the lower end of the market (where cash positive are found), Thousands of australian’s became home owners and the stock of cheap home disappeared.that’s enough of my thoughts for now, if anyone is still awake and they want to add their thought that would be great.[
]
regards westani haven’t been able to buy anything since June and that was in a smaller town than i would normally go for. It was St Arnaud for 27k rent 100pw (i consider this a good deal).
Congratulations Westan “that is a good deal”
anyway the 3brm homes got passed in at $21k each so my friend bought them all after auction for $19k each. (Yes the Gov’t really did that). today 6yrs later they sell for over 90k
And Congratulations to your friend- “that’s an even better deal”
It’s great to hear about people doing well, it’s motivational. the deals are still out there, maybe not near you, maybe not as good, but they’re there as evidenced by other posts.
Thanks Westan 4 the motivation
REDWING
hi redwing actually
got a bit more of the story about the guy who bought the 10 in Moe. he ended up with about 50 properties. When i said friend, more like a business aquaintence. Anyway this guy did real well he bought in Adelaide when i did, paying only 21k for properties now worth 90k, but he went Bust a few years back.
Now here’s a realy important leason. he was a person without any integrity. he wasn’t very smart either. for example the ones we bought in adelaide in 1997. they had no floor coverings. we put new carpet in and rented them out at 100pw paying everyone promptly and developing good relationships with the property manager and mainenance guy. the other guy did nothing to the properties then all he got was 80pw. the tenants were the bottom of the heap and didn’t pay rent. this is typical of what he did, he didn’t care about his tenants or take time to present the properties well, therefore he attracted bad tenants. Eventually his property empire started to crumble like Domino’s and properties were sold from under him. i don’t know where he is today but i know his marriage broke up. i reckon he would be worth over $4 million today if he had done property the right way.
regards westanThanks Westan! Great posts.
In Adelaide most of those cheap properties in Elizabeth are going for $90K +.
I could kick myself for not being aware of this as I have owned my various PPOR’s totally freehold since about 1995. Grrrr……
And I agree, amongst other things, the big promotions of property through books, seminars, TV, etc has pushed prices up everywhere!!!!!
That’s why I’m doing some share trading first while keeping an eye on the property market. At least I have an opportunity to make some money (Note: I have been studying share trading most of this year).
I’ve just set up a family trust & my team. But here I am ready at the WORST time in Australian history to invest in property. (At least I’ll be ready when prices come down).
Is it worth it now?
Like they say in share trading, sometimes a position in the market is being out of the maket when it is not going your way.
At least I’ll be poised to get good gains in share prices when a lot of the investors come running out of RE, and into share again.
As it is said, success comes when opportunity meets preparadeness.
Cheers,
David Paxton
“You Only Live Twice”P.S. Oh by the way, Tassie is looking good.
Just been searching here tonight. Many properties found under $50k. Some daggy, and some looking very good – at least on the digital photos anyway (but I can’t imagine any would be doctored would they?
).Cheers,
David Paxton
“You Only Live Twice”hi guys
david check out post by rodgerramjet “Murray Bridge catologue prices” he mentions some recent trust auctions in aedelaide.
westan
Hi Richardo,Just wondering if your meeting is open to all and any who are interested or invite only? I’d love to sit in and see what everyone has to say and what opportunities are out there for partnerships [
]Thanks
JenDear Jen, And Everybody.
Yes meeting is open to all – It’s this Sat. Dec. 6th from 4:00 to 7:00 at Ross House do come! The meeting will be on the 1st floor. If you’re a bit late either call Steve on his mobile or my mobile 0413 217 530 ring the bell (1st floor – front) but try to be on time! BYO soft drinks or tea or coffee. (There’s hot running water and cups). Ross House is at 247 Flinder’s Lane between Swanston and Elizabeth – Just around the corner from Flinder St. Station, so catch the train if you want to avoid parking hassels!
Regards,
Rick.
Dear Westan,
Thanks for your reply. It is a bit dissapointing to receive confirmation of lack of +Geared Properties in Vic. I wonder why that is? And, in answer to your question, firstly I agree that your St Arnaud purchase for 27k – rent 100pw is a good deal, I’d, be happy with something similar.We are organising a meeting in Mel. (Dec. 6) to form a group of investors. At this meeting I will comment on some of the info you’ve just given me, and I’ll be curious to see what others have to say. I’m sure good things will come out of the meeting.
I can keep you posted with the results if you wish.
Regards,
Richardo.
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