cmon guys, help us on our quest towards finding freedom, if your all serious investors and researchers i can understand wanting to keep some info secret, but sharing is caring and asif where all gonna go out and buy where is recommended and talked about. we of course need to do our own due diligence so all i am asking for is that some of you share some of your knowledge with us. please. give us something to work on. as i am also happy to share my experiences to those who seek.
Originally posted by freedomfinder:cmon guys, help us on our quest towards finding freedom, if your all serious investors and researchers i can understand wanting to keep some info secret, but sharing is caring
To answer this I’ll start by asking what would be more caring – providing a list of town/city names to start off with or suggesting how one might find those places yourself.
Assuming you’re going to want to buy more than one property, I’d go for the latter.
So where are the high yield areas?
The answer is that they are either where property prices are cheap and/or rents are high.
So you need to identify these areas.
The real estate websites can held you if you look for the places where there are properties under $100 000.
Make a list. Most will be tiny towns you’ve never heard of, but others will be some larger centres.
Then do some research on these centres you’ve identified.
Find out what rents are like there. Also if the town is growing or dying, any new or closing industries and if there is much demand from tenants for places to live.
All of the above is available via the internet, plus local newspapers, the local ABC radio and local people you will talk to.
And that’s pretty much it!
Regards, Peter
Give a man a fish, he’ll have fish for a day; teach a man to fish, he’ll have fish for a lifetime… or something.
kay henry
peterp thanks for info which is easy enough but to take the next step is not so easy in my opinion. would one need to travel to these little towns to inspect many houses and negotiate some deals which is o.k. but how does one handle the upcoming maintenance issues that relate to older properties being 1000,s of klm away. will some of these costs eat in to the projected cf+ and perhaps make them cf-. i suppose thats the risks. i think i just need to bite the bullet and give it a go ah.
Well some say i do it the hard way , but yes , i travel, there , talk to the locals, inspect the houses talk the council, etc etc
Regards Bear
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There are many simple solutions to such a question. First you must consider your financial obligations to your family and your current mortgage/financial provider. You need to determine your position in relation to your finances.Robert Boyd
I do none of that. I check everything on the internet. Info on population, social problems, tenancy vacancies, good and bad suburbs, industry information- existing and planned, maps of the town/city, flood information, climate, median incomes, ages, median prices and CG etc… all of this and more stuff can be found on the net. One site will lead to another or give me an idea of something else i need to look up.
In regional areas, you can ring up many independent RE agents and ask them what they think of an area. I have done this many times- if I’m serious about a place. I ask them about the asking price (if it’s worth it), the location etc etc etc. All RE agents I have spoken to have been great.
It would be a less successful strategy probably to ring up a sydney RE agent and say “what do you think of penrith/bondi” or whatever.
The rest is up to a good pest/building inspector, a good Property Manager and that’s about it- set and forget. My last two purchases were found on the internet and i didn’t see them until a few months aftewr purchase. It’s likely I’ll do this over and over- using ones legs is less and less necessary these days- particularly when one is busy with full-time work.
kay henry
Man I just got busted by the wife because we heard the fireworks outside. When we went out to have a look she said “I knew we should of taken a drive and seen the internet”.
I think its probably better we stay home because the dog would probably jump the fence from shitting herself.
Between women and the dog, I am literally trapped between complaints.
PhewRobert Boyd
Peter,
As a newbie – I’ve one question. With a lot of had work, can you still get properties that yield 10%?? in NSW or VIC
Thanks
Lee
Originally posted by lgregory:Peter,
As a newbie – I’ve one question. With a lot of had work, can you still get properties that yield 10%?? in NSW or VIC
NSW and Vic are not my areas of interest, so I have not extensively researched this.
But other people have reported finding such places (usually in very small towns) so they must still exist : )
Yields are greater outside the two larger states.
In these areas the issue is not so much ‘are there 10% plus properties’ but ‘am I happy with the risks that these properties entail?’
If not, there are things that can be done to lower risks.
In my case I opted for average yields around 9% and properties in large regional cities that either:
1. have low property prices compared to other cities
2. have high rents compared to other citiesAnd satisfactory vacancy rates, population growth etc.
Yes you do need to travel, but I have not tended to inspect huge numbers properties (not being a renovator).
I look at many on the internet, ask the agents about others, get the rents, holding costs, etc of the best of these and only inspect those where the asking price appears cheap relative to rent.
As for maintenance, I have tended to buy lower maintenance (eg brick & tile) properties built in the last 20 years. My bias towards larger regional centres also assists in finding property managers & tradespeople.
I have been operating according to a belief that 9% from highly tenantable, low-maintenance, easily managed, well-located properties in large regional centres is better than 10-11% from the opposite in smaller towns.
But I’m content to be a fairly passive investor thousands of kilometres from my properties. An active investor who can do more than me in countering the risks of smaller towns would do better than me due to the higher yields.
Regards, Peter
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