G’day all. Relatively new to this and just reading Steve’s book at the moment. My problem is that having carried out a ‘bit’ of research, it seems that if you multiply the ‘rent’ by 1000, you get similar to the asking price of the property. However, if you halve the rent and then multiply by 1000 (11 second calc) it seems impossible to even get close. Am I just looking in the wrong areas? I live in prahran but initially looking in Geelong and ballarat. Pleased to receive and advice.
glen jackson
Hi Glen,
Welcome to the forum!!!
I don’t think you will find too many properties fitting into the 11 second calculation in either Geelong or Ballarat, maybe some might come close, but generally, I don’t like your chances. You may need to look further out.
But as they say “never say never” so no harm in keeping your eyes/ears open; you may get lucky!!!
All the best,
Jo
Thanks your prompt reply Jo which much appreciated. Yes, think you might be right and having read a few more of the posts on here, I see that I am not alone in my ‘wonderings!!’
Might have to spread my wings and do some real work on it.
Thanks anyway
Glenglen jackson
That’s the spirit Glen!!!!
As long as you are willing to put in the “hard yards” do your due diligence, I think you will do fine; it may take a bit of time, but doing your homework will ensure that you have thoroughly checked out your options before signing on the dotted line!!!
As for the “+CF” or “11 second” type question, oh yeah, that gets asked all the time, probably on a weekly basis!!!
Cheers,
Jo
thanks yours again….dangerous reading this site….Now got N.Z, W.A, Tassie and Mt isa rushing around in my head!!? Might have to sell the trip to my wife as a ‘holiday!!’
Glen
glen jackson
Hi Glen
Yes it is dangerous, i started looking at NZ early last year, i had two “holidays” to NZ, now i live here/there.[confused2]
watch out![biggrin]
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Glen
Westan said
watch out!Too true, he has either sold half of NZ or owns the other half.[biggrin]
Regards
Yeah, and the bits that westan isn’t buying or selling several others of us are chasing down!!! NZ is definitely the place to consider for good solid cf+ houses at the moment!!!
I understand Westan ending up living there as well. It is a great country, I could spend many more weeks there than I get the chance to…..
Cheers
CDCastleDreamer
“+CF properties in NZ available now”Glen,
You would have noticed that Steve bought his properties in Geelong and Ballarat some time ago. He invented that wheel, and the horse has bolted. I promise there will be no more bad mixing of metaphors tonight
Just think of a number- say 100k, and then double that amount to get your rental yield- so 200 bucks. That would be around 10% or near enough. These days, you have to look beyond regoinal really to get these yields. Like mining and country towns in Australia. There are still some real cheapies in Victoria. Pick up a copy of Australian Property Investor magazine, and look through the median prices for Victoria, and circle the cheapies. It’s a start. Then check those places on the net, and then find better and better places.
You don;t have to find the cheapest place. As someone said on here recently, they look at 100 places before they buy one. I reckon that would be about right. The more places you see, the more you’ll have an idea of what’s out there, and what to look for. So you’ll see a place that might look shabby- maybe a 50k place… and then you’ll find another one that’s renovated… or you’ll find one that’s 1970… and then you’ll find another one for the same price, perhaps same location, that’s built in 1980… So many things to look for- but it’s all good fun
kay henry
Hello again Glen,
Although I have not read Steve’s book (boo shame I hear you say!!!) I do believe he cleaned out Ballarat and Geelong of (pretty much) all it’s +CF properties; he played it very smart our Steve!!!
As many here have said, yes there are still such properties but they will be further out, maybe even as far out as you referred i.e. NZ which has many +CF properties (if you don’t mind investing o/s). NZ is a lovely place, so I don’t see this as a bad thing at all, and definitely worth considering!!!
It is also a good idea to talk to REAs and develop a rapport with them; if they know you are looking, they will keep you in mind. To give you, but one example, I got a call from an REA in Ouyen who has/had (not sure if still available) a house for 35K renting for $70 p/w; only problem is Ouyen’s population is declining steadily, although the REA assured me it was on the increase!!!
Anyway, I think you are doing the right thing, and sooner or later, your research will lead you to the right one for you. Happy hunting….
Cheers,
Jo
Hi Jo
normally i’d say keep away from Ouyen , but if the mineral sands projects start to happen around that part of Vic who knows?
as always do your own checks
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Westan,
Yes you’re right that is true!!!
There are quite a few +CF property options such as the one I have mentioned above in place like Ouyen, but for me personally, these “if’s” are just a bit too risky for me; my pace-maker wouldn’t last the distance!!![lmao]
Jo
NSW Property still available:
Purchase price $74,000
Capital growth rate 6%?
Year 10 value $170000? who know?
per week $160
Condition: The property is a 2 bedroom strata titled unit on the 3rd floor of a complex of 19 units. Construction is double brick and cement with aluminium roof. Internal size of the unit is 50sqm. The property is approximately 30 yrs old. The unit is furnished with Air conditioner, jug, toaster, microwave, cutlery, plates and cooking utensils, beds, TV, table, chairs. All of this is in fair condition. The unit has a pleasant outlook and faces west with views across the park and the district. The property sold 4 years ago for $75,000.Location: The unit is located within a major northern NSW town with shire population of 29,026 people. 50km to the beach, the area has experienced strong capital growth. The town offers all amenities which are all within a couple of kilometres. Public transport is at the door and train station nearby. The property is located on the main street of the town near the CBD.
Tenant: The property is not currently tenanted as the bank foreclosed on the unit and kicked the tenants out. However the property has a very strong rental history with minimal vacancy rates. 1 week vacancy factor will suffice. The unit will rent for $160 p/w.
So 11secs still OK. This shown property are still around if you still want to invest in property…Kind regards
Jet Dollars
Retire Young, Retire Rich . . . REALLY? . . . I didn’t know that!Distressed sale, Chan? [wreck]
kay henry
Originally posted by kay henry:Distressed sale, Chan? [wreck]
kay henry
That’s correct, the property actually value at around $95k.
Kind regards
Jet Dollars
Retire Young, Retire Rich . . . REALLY? . . . I didn’t know that!
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