buying far away from home

What makes you so confident that it will “turn” pos cash flow??? Remember, it could go the other way just as quickly, but if you feel it’s right for you…..go for it!!! Oh and don’t forget to take a cut lunch as well as a few other choice munchies/nibblies for the looooooooong drive!!!!

Jo

Hi Ko_star

while it does worry some people if they have a property a long way from home personally i couldn’t care less where it is. If the deal is a great one then i’d buy it even if it was 20,000km away, (Jo then you need a real big lunch box). Sure i’d build in a bit of an extra premium for the hastle of having it further away.
Personally i wouldn’t buy a house because it is close to being cash positive, it must definately be. And the fact that it is cash positive should be just one consideration.
By the way, unlike Jo, i’m the type who has only ever bought cash positive properties. But being cash positive in itself doesn’t make it a good deal, realistically you want to have the potential for capital growth. Cash positive is just one factor in an investment decision.

hope this help a little
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 Ko,

…well, I agree with Westan on this although I don’t know how far NZ is from Melbourne – all I know is that its far enough and I bought there thanks to Westan.

My point is this, – it doesn’t matter where it is – as long as you with/without someone else do your due diligence and the figures turn out in your favour, then go for it.[biggrin]

kind Regards,
George.

I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

Ko_Starr,

People work out what they’re comfortable with. My first place was a 5-minute drive from where I lived, but it didn’t mean it was any more low maintenance than my place 1000 km’s away. I use property managers, so I have a hands-off approach. I think one reason people balk at buying places at a distance is because they feel that they don’t know the area well enough. There is so much checking of an area that can be done, that you can feel safe to buy far away if you read every piece of information about the place. Google can assist you with this.

Also, if you’ve ever holidayed at a place, or travelled around Australia, you will probably have heard of reputations of the locations. You can ask on here if you’ve found a place and want to know about it. Remember though, that people often “talk up” locations that they’ve bought in, and might not be as objective as you might hope. I find google to be my guide in reading about locations. You can try this… go to google.com.au and type in “blahtown”… if he town is small enough, you might only have to read a few hundred links :o)) But if you want to specify, you cal type in the following words:

*flood *employment *rental yield *median price
*social problems *population growth *population decline *industry *real estate boom *crime * *tourism etc etc…

Each new link will give you idea on what to look up next. If you go to the local council webpage, you can find out what is planned for the town, or services that are declining.

If you buy a cheap house- for say 40k, and the rent is $90 a week, think about expenses- including the cost of the mortgage- and possible repairs.

Also think of contingencies like if there will be a property manager in the area, how many tradies are in the area, and will it cost you a heap to employ them.

Some people enjoy the few extra bucks they might get from a CF+ house per week- some people on here have said they get an extra $10 per week for their house. But you’ll be paying tax from that “profit”, so you might think if the property has any capital gain prospects. Will it be worth it to have the drama of a place that might give you $7 a week profit?

Having said that, my places make no profit- in fact, they’re negatively geared. I invest money into them because I like real estate, and am happy to hold them for the long term. I don;t “earn money while I sleep” hehe- I *lose* money while I sleep :o)) But I’m quite ok with that. Most small businesses don’t make money in their first year, and I see RE as a small business- invest in it, and watch it grow.

If you become a specialist in the area you wish to purchase in, you’ll be ok. I have learned a lot about many areas of Australia by reading about them. Sometimes, the more you read, the more you have reason to decide NOT to purchase in the area. But buying in a distant location can work. Some markets might have “better value” than in the location you live in now, so you might choose to buy elsewhere.

kay henry