Hi all
I need help. I can buy a IP in a very small country town for $45000 that would rent for $120/week ie 13.86% yield.The problems I see with this is no{or very little}capital gain & the IP may not be rented.
I am self employed cashpoor so I am having trouble getting a loan.Luckily I sold an asset & I have $60k to invest hence I could the above IP outright.
Where can you buy +ve cash flow IP in QLD now that prices have gone up so much?
What do you suggest?
Thanks EveryoneHi there,
Welcome aboard. The problem as I see it is you can’t expect a yield of almost 14% to come with accompanying capital growth prospects… not the way the market is right now. As for areas in Queensland, or anywhere else for that matter, just spend ages on real estate websites testing out different price ranges, you’ll get a feel for which areas are likely to have CF+ and which aren’t. With CF+ investing, CG is a bonus.
When you find your area, research the demographics for the area, industries etc, to give you an idea if it’s a place in decline, or whether it acutally has some prospects.
I don’t think I’d like to invest all my cash into one deal, so I wouldn’t buy it outright.
In regards to getting finance, why not try a lo-doc or no-doc loan, they’re often good for self employed people.
Cheers
rHi Cashpoor, welcome to the forum,
A few options are,
Apply for low Doc Loan(as you are self employed and have had trouble getting finance) based on IP value of $45,000 put down a 20% deposit = $9,000 + 5% costs $2,250 Total $11,250
With the $60.000 you have you may be able to purchase 4 ips valued at $45.000 and still have $15.000 for improvments or the sleep at night Fund,
Regards
Steven[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Richmond
Thank you for advice,have taken all on board especially not putting all cash in one deal.I am having trouble getting lo-doc loans in country areas.
Regards
CashpoorHi Mobilemortgage
Thank you for reply.Please refer to my reply to Richmond.Regards
Cashpoor
Hi cashpoor,
A lower LVR may be a way around the problem,
Regards Steven[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
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