Hi Everyone,
I am wanting to purchase my first positive geared property in Rockhampton. I have found a property that looks good and wanted some advice whether I’m doing the right thing. Its a duplex with 4 bedrooms each in Phitzmaier St, Nth Rockhampton. Does anyone know that area. Is it a good area? I’ve been told the owners will accept 260k or thereabouts and is currently rented at $390 per week. I’ve been told that Rockhampton is also booming at the moment. Any advice or help will be appreciated as I really want to start my portfolio with something that is positive.
Regards SerfOn a stand alone basis, ie- rent versus mortgage, you’re not CF+ (let alone with expenses factored in). Rockhampton is not booming, not according to the stats. It’s like a lot of places in Qld, the property market is scratching it’s head wondering whether to go up or down.
If an agent who is selling real estate in town tells you it’s booming, they are doing so out of self interest, not yours. Good Luck…G7Hasn’t Rocky already gone up considerably over the last year or so? Check the SS forum there’s a lengthy post about Rocky (lots of great info too).
The vendor is probably selling to grab the CG’s for something better. This deal could leave you with a property that will stagnate in value for years without providing an income.
Do your DD…….that doesnt sound too bad. anywhere up and down the queensland coast is a good investment i think. i agree that it may have had its run. as for positive cashflow, i think it would barely scrap in. not including rates, maintenance, strata levies??? you have a positive difference of $3380 (based on 6.5% int.rates). still better to be slightly positive or breakeven than negative if there is a reasonable prospect of cg.
Hi Serf,
Based on your figures and my assumptions.If you purchase a property for $360000 and borrow the whole lot including costs you would need to borrow approx $370000. At 6.5% interest only you repayments would be $337.50. Management fees in Rocky are approx 8.5% so management fees will cost you approx $33 pw.Rates are approx $2400($46 p.w.), therefore at the very least property will be costing you $416.50 pw. Add to this insurance, maintenance etc. I dont know if it is booming at present, but the properties my wife and I purchased there 2 or so years ago including a duplex have certainly risen in value. Weve never had a vacancy. Good luck on what you decide to do. MartinMartin
serfguru,are you the vendor for this property?????//
Originally posted by Brisbane 04:
If you purchase a property for $360000 and borrowummmmm Martin. Hate to be picky but Serf said $260k (or do you think that was a typo?)
I wouldn’t have a clue about Rocky prices to spot whether there was a typo by Serf or not although $260k and renting for $390 doesn’t sound right either.
Hi Serfguru
Not a +CF property at that price.
Keep looking and you’ll find something that fits.
For us to consider properties, we also do Steve’s 11 second test – which means you would need to get the property at $195K. Unless you’re a really good negotiator probably best to find a better deal.
Good luck!
JennyHi Betterbiz,
You are right caught me on a typo. The figures however are still correct. On a $270000 interest only loan at 6.5% the repayments will be $337.50 per week.[biggrin][biggrin]Martin
Hi .. the area you are looking at buying in is very close to the University, and hence almost entirely populated by university students, if that matters. A lot of the houses are relatively new and unexciting.
Property prices are very much on the rise in Rocky, partially because of the coastal rise (yeppoon). It is on the north side, and there is many better places to buy/build. I know several people who have properties that have risen substantially, particularly in new developments. There are currently new developments opening on frenchville rd (blocks are around $100k) and at the base of mount archer. If I had the money, I would be looking at a block of land in the hillside/norman gardens/mount archer/frenchville road area. The southern side of Rockhampton is much older, and virtually no land for sale, which can make houses in the right area quite valueable (some over $1,000,000). My place for example has risen around 80k in the 18months since we purchased it.
Cheers,
Simon
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