Hi all,
It seems to me that to be able to obtain a positive cash flow one needs to be buying properties under $150k. Most of these would be in country/rural areas which I would think would not appreciate much capital gain. Also a lot of these properties would need regular maintenance, thus reducing your positive cash flow. Also one would presume you would need to hold such properties for the long term. Am I right in these thoughts? Any replies and help would be greatly valued as I am still working out the best way to go with IPs.
Regards,
David Harding
eliteviews
D.E.Harding
Gidday eliteviews,
I agree with you, but what is your strategy ? In these times my strategy is +CF and hold for long term capital gain. But do not underestimate capital growth in the right country/rural area.In 2002 I purchased a 3 bed single garage brick and tile home in Wauchope NSW for $117k (the previous owners paid 115k 3 years previous) made $15k in improvements to update the kitchen, bathroom and paint out.It rented for $210 per week.In early 2004 it sold for $269k!
Property values will now stagnate in this area but in the long term will jump again as nearby coastal towns will continue to have huge growth.
For me due diligence is the key.”Seachange” has pushed house prices on the NSW North Coast (eg Port Macquarie)through the roof, but for areas located just inland from these coastal areas a “Greenchange” is coming. It may take a while to turn around but it’s worth the wait if long term investment is your strategy.
Happy Days,
cm.cm
Hi CM,
I’ve read all about the ‘seachange’ and seen it happening, but could you please tell me/us about the GREENCHANGE.
Im aware of the ‘hinterland factor’, but I havent read much about it apart from Mathew Matusik in an API mag awhile ago.
Where else can I read about this.
Cheers
LOANwolf…[cap]
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