I have read of the “Domino Effect” which points out the price wave from the city to the country.
What I would like to know if you can help me, and i hope that you can, is in regards to property purchase in the bush, when I say bush I am referring to places like Coohlah, Gilgandra, Forbes, Cowra etc.
I have taken the advice of some opinions via these forums in regards to the + geared properties that are so scarce, and have completed some ground work with a few realtors so that I can get a few of these hard to find homes hot off the press, and they are out there.
To get to the crotch of my question so to speak, do you feel that it is worth the effort buying half a dozen 80 to 90k properties in the bush with moderate to good rental returns or would my money be better spent invested in shares or perhaps a top ten franchise?
I cant see the sense of borrowing 300 to 400k for a investment property in Sydney somewhere with a $260 return per week when I can acheive a lot better return from the bush. The only concern i have with this formula is in regards to the growth.
I know I am asking a bit with minimal info but if you get the drift and can help me in my state of confusion then I would be most happy!
Great site guys, most enjoyable.
Regards,
GG
<<<<<The only concern i have with this formula is in regards to the growth.>>>>
I invest for growth. I dont want the same income in 5 yrs as you would have now if you buy in the bush.
I prefer surburbs in the city.
Hi Mysta,
I, too, invest for growth and focus my attention on city property (as distinct from high rise apartments) with the increased likelihood of regular growth.
Long term – I am of the opinion this is ‘safer’ for me.
If Sydney returns are an issue for you (I appreciate the issue) then there are other capital cities with better rental returns. As you have contemplated other places spread around the state there is no reason you couldn’t spread your wings across a border too.
Me and Yack against the world [biggrin]
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Originally posted by Derek:Me and Yack against the world [biggrin]
I also ONLY invest in the suburbs
same as yack and derekmysta
Coohlah & Gilgandra are not quite in the same league as Forbes & Cowra. Forbes and Cowra are much bigger towns with many industries feeding off the larger population. Not that I am aware of any new developments in Gil’ and Coolah, but if there was to be CG, it would more likely to be in Forbes and Cowra.
‘Eat rich food, barbeque a yuppie’ [greedy]
Then please explain your reason for investing in the suburbs?
Look at my situation, I have to borrow a minimum of 300k for a rental return after fees and so on of 230 per week. Is there method in that madness?
Do i have to put my hand in the back pocket for the next decade waiting for the seven year itch?
The rent returns in the suburbs just aren’t there anymore. Look at Calgary, we spent a good six months over there renovating basements with my brother in-law, they were buying a brand new house for 160k spending another 20k converting the basement for habitation and scoring 1600-1700 per month rental return on their 180k outlay!
Numbers dont lie, and Sydney is, just a lie.
GG
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Come across country and have a talk to Russ.Youve got nothing to lose.I like your logic.
Russ.[biggrin]So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
<<<<<Look at Calgary, we spent a good six months over there renovating basements with my brother in-law, they were buying a brand new house for 160k spending another 20k converting the basement for habitation and scoring 1600-1700 per month rental return on their 180k outlay!>>>>>
Are you talking Calgary, Canada? I also understand that council rates are a shitload more expensive in Canada than Australia….
I will be in Montreal and Ottawa in Sept/Oct. I will check things out there then.
Hi Mysta,
As a growth focussed investor I prefer to invest in areas with a degree of ‘growth certainty’ and while Sydney would fit this criteria (7.93% 20 year average growth) if the rent returns and entry levels were more investor friendly. That is why I suggested you may want to look interstate where rent returns and median prices are less.
Cashflow is only one part of the equation – Sydney is a proven long term growth performer and this aspect needs to be added to your ‘profit’ equation.
For 20 years statistics of all cpaital cities check out http://www.navra.com.au/articles_display.aspx
Derek
Read my comments? Think I can help you? PM or email me.
Originally posted by mysta:Then please explain your reason for investing in the suburbs?
Look at my situation, I have to borrow a minimum of 300k for a rental return after fees and so on of 230 per week. Is there method in that madness?
Do i have to put my hand in the back pocket for the next decade waiting for the seven year itch?
The rent returns in the suburbs just aren’t there anymore. Look at Calgary, we spent a good six months over there renovating basements with my brother in-law, they were buying a brand new house for 160k spending another 20k converting the basement for habitation and scoring 1600-1700 per month rental return on their 180k outlay!
Numbers dont lie, and Sydney is, just a lie.
GG
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Hi Mysta
I bought a property in 1999
Malvern east Vic $310000
House 2 doors down sold last Oct
smallel black much smaller house
price $765000!!!!!!!!!!!!!!!!!
no mater how mucjh more the rent was in a +ve
i would never have been in this possitionGuys,
So how many quality investment properties can you buy per year. I know I keep ask you guys the same question.
If you buy one quality investment property per year (say) then in the same year you can also buys 3 +cf properties to help the cf of the first property.
People keep saying that country/regional areas does not grow and at the same time they complaint that I can’t find any +cf property. Why, before there are so many +cf property, but not now? That’s because the country/regional area does have capital gains as well but slower. If you can’t find +cf property in the area that you are looking for, that’s meant the area is already grow. So look at somewhere else until you find one.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Are you talking Calgary, Canada? I also understand that council rates are a shitload more expensive in Canada than Australia….
I will be in Montreal and Ottawa in Sept/Oct. I will check things out there then.
Calgary/Edmonton is not that bad, the good aspect you have to consider is the fact that you can buy and sell in a day if you want and dont have to pay capital gains in their province. The dearset fee is the realtor at around 5/6k government crap and charges is around 1k.
The realtor we were working for was buying houses of the desperate for dirt, doing a quick reno and selling within the fortnight!
he started off in Calgary as a butcher, got a real estate lic in 3 months.thats right 3 months and started buying and selling. Trying doing that number in OZ!
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
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