Mini, the various websites will keep me busy for a few nights, thanks a million for the info, good starting point for me.
Patrick, to you too a big thank you for the information. Will certainly look at properties in North Queensland.
To save confustion between Rose and RoseMarie, I’ll use my nickname from now on, which is RM.
Very best regards
RM“Plan the work and work the plan”
Rosemarie, RM! –
well figuring that you are Swiss, I’ve been pronouncing your name the German way in my head (german was my first language!) – is that correct?
cheers-
Minijoy to the world
I can tell you that there are a few still there. REsidential of course.
I was looking at blocks of units/flats that were returning great dollars. I found them on Domain.com and Realstate.com.au I will get some links and post them up later if need be.
Patrick Bouhamdan
General Manager
Cherry ComputersHi Patrick,
I would love to get the links to find out more about gladstone, being a Queenslander myself. If you could put them up that would be great.
Lara
Lara Hansen
This is an 8% return without negotiating based on purchase price.
http://www.ljhooker.com.au/property_listing.php?id=646874&type=Residential&category=buy&click=1
Is a 7% return without negotiating based on purchase price. COC would be better.
I have emailed a few agents and waiting on replies.
Also, we just bought a few in Broken Hill NSW. PUrchase price of around $40k for a house renting for $110 a week. Still many there available. We used http://www.elders.com.au/brokenhill and http://www.schinellas.com.au/
Patrick Bouhamdan
General Manager
Cherry ComputersHi
Broken Hill, whats that place like??????
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
Thanks Scotty B
But if you mean for a fee I would have to say no thanks.
I enjoy helping out for free.
Here is a link for your town great return, 10 year guarantee.
Patrick Bouhamdan
General Manager
Cherry ComputersHi
Like the link [rolleyesanim]
Unfortunately that’s a poor return for Karratha.
The property is on the outskirts in a new Suburb, you can achieve much better returns than that with a little extra effort (not just a 2 second search on the web) [grad]
Asking price is high but I suppose that’s what you get with a guarantee [biggrin]
You still didn’t give any input on Broken Hill?
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
What kind of information you looking for?
Broken Hill was once famous for its mining and now is trying to change its’ focus towards tourism.
Properties range in price starting as low as $20k for a renovators dream upwards well above $200k.
The low end of the market is a good place for that investor looking for cashflow. We bought one last year for $18,000 and now rent it for $130 a week. Spent about $5000 in repairs.
There are many listed around the $40k mark which I am sure would rent in excess of $100 per week.
It really depends on what you are looking for. AT this point I am only looking for low end properties that provide great cashflow.
My point on your town Scott B was just that I don’t think it would be hard to find places without a fee. I am not sure about others, but I would be happy to pay a little bit more to receive a 10 year guarantee. The armed forces or mining companies do that often to house their staff.
Patrick Bouhamdan
General Manager
Cherry ComputersHi
Cheers for the info on Broken Hill [thumbsupanim]
It’s actually quite hard to achieve 10% in Karratha.
A 7% return in Karratha is to low by far, even with a 10year lease. Depending on your situation you may even have a negative cash flow in a country town!
There is a possibility that it is a company built property with the lease written into the O&A. Mining firms aren’t known for their generosity especially when they have the negotiating power. Very few firms in the Pilbara pay 100% of the employees rent, therefore they will try and secure a long lease with lower rent to ensure the employee doesn’t have to pay too much to make up the difference.
Remember you still have to pay a property manager (Rio likes those) usually at 10%, maintenance (cyclone area) and the mortgage (with a structured lease you can’t simply rise the rent if interest rates go rocketing up)
Sorry but 7% is too low, why pay more for 7% when you can pay less and get 10%!
Anyway I could go on and on but it’s not really the point of the thread [offtopic] cheers for the info & good luck
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
Patrick, many thanks for the links you have provide, really appreciate it.
Mini,
My name is such a mouthfull that everyone shortend it to RM.
Wie lange bist Du schon in Australien??Cheers
RMJust wondering byronent…
This is my first post. I’m in my first year out after graduating from uni and so am very new to real estate. I have been reading these forums and found them very informative!
My question is about the property listed in WA which you posted up with a 10yr list. The return is 7% which to me sound great. However, does this mean that the chances of capital gains on this property may be quite low? I think that it may be low because:
1. this is land which is used by people who work for this particular company. If the company moves or closes then there would be no/little demand for this land.
2. assuming that land value is low, what happens to the investor after 10yrs? is it possible that you may not get any rent? or very low rent because it is no longer subsidised by the company?Are these possible risks on this particular investment?
Just a few questions as i’m trying to learn. Let me know if i’m way off the mark.
Thanks all.Yes quite right I think there are risks as you mentioned. I know there are still CF+ve places for sale in NZ like 10 percent and over and still in CG areas to boot, or at least stable towns. That is, ones that you buy as a ‘going CF+ve concern’. I also see prices in Aus dropping across the board which means that CF+ve properties or close to it are starting to pop up all over the place and not just Broken Hill type places.
BUT having read steve’s new book and after reading all the Mappers’s stories it is quite clear that you can MAKE a non cashflow property into a cashflow one by ‘doing stuff’. whether that is renovating, subdividing, adding a wall to make an extra bedroom, finding a tenant, etc etc that’s basically the way you do it if you want to do it here and now and where you live rather than in NZ. Then again that’s way too much work for a lot of people which is how come most of us didn’t by a mill worth of property in a year, and the mappers did.
but we could have. is all I am saying!
joy to the world
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