hi everyone i have found a couple of properties they are duplexes 3 beds priced at 65k each with a rental approx $100 the rental market is a bit over supplied i am told are these worth more investigation?
They will be slightly negativly geared (just uosing Steve’s 10 sec’ formula). Can you afford them, if you buy them (factor in worst case scenario – 2 units being untennated)? Do they have goodpotential for Capital gain? What is the upside?
We need alot more info about your goals as well as about the proerty. Or so if we are to give an opinon or guess about capital gains, you have to give us a basic idea of where the property is.
Rgds.
Lucifer_auHow old are they.Where are they.What are they made of.I know where you can buy duplexes for $95 000 the pair returning $200.Or $60 000 pair returning $200.You have to look at the deciding factors.If there are too many vacancies it is risky.But there are many ways to solve a problem.In the case of my duplexes you could drop the rent a bit to get a tenant and still be positive.But in your case you cant drop the rent too much without feeling the pinch.
Russ.Michael,
In another post on this Forum, you said you’ve been investing in property in regional SA for 5 years. It’s likely then, that you would have some idea of what to look for when thinking about whether to investigate further the properties you’ve mentioned. Best of luck with it.
kay henry
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