Hi Guys n Gals,
Cash flow + is not always a problem, I have 2 of them & would like to buy some more.
the income is no problem for finance,
My problem is now the equity to keep under 80%.
Any ideas ?
Thanks in advance for the assistance.Mark
Try Dysart, Moranbah and Blackwater in Queensland.
All are mining towns but are returning around 8-9% rental returns.
Regards
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
We have just bought a house in Moura. Houses are around $250 k and returning $420-$450p/w rent, returns of around 8%. The area was listed as Queensland’s biggest growth area- houses have increased in price in 12 months by 49.5%. The mines pay alot of the rents for their staff. Dawson Mine out there is opening another 2 mines with increase in production forecast and hiring another 200 employees so it seems like a good time to buy. Has anyone else done this? See the recent Sunday mail newspaper for a free report on boom areas in Queensland. Cheers, kel
I was close to buying in Moranbah 6 months ago but being very new to the investing game and never had bought in a mining town, i was sceptical about buying in such a rural area.
Seeing those sort of price rises in 12 months hurts a bit for not biting the bullet.
Can anyone with experience investing in mining towns or those against it share, their views on what some of my fears would have been in regards to what happens when the mining boom slows and demand is not there ??
If prices have gone up like that in 12 months have i missed the boat ?
RegardsMatt
Originally posted by Bradleyvonx:Turnby,
four weeks ago we purchased a property in Drayton/Darling Heights in Toowoomnba.
Purchase price was $265,000 current rental income is $610 per week.
Toowoomba has good growth and infrastructure, main problem is water restrictions dams are down to 18% but many places have water issues.
I am having a lock at several more properties today, same rental return is expected, probably a bit higher closer to $800 per week.NB
Raddles
Fairly good summation of Toowoomba. Toowoomba’s referendum on recycled water has spotlighted the town negatively. Toowoomba is no worse off than many other areas in Australia struggling due to the drought. Investing in Toowoomba is still a go – benifitting from the mining closeby, Milmerran power station and its size (100,000) so close to Brisbane. If as you said Raddles Toowoomba is about 12 mths behind Brisbane then I would suggest now would be a great time to invest in Toowoomba.??[biggrin]NB
Turnby,
You bought the property in Toowoomba 4 wks ago. How do you feel about renting to students?? Which agent are you using?[exhappy]NB
Turnby,
[blink]
I live and have two investment properties in Hedland.
I believe you can still create a positve cashflow in Hedland if you buy a house and renovate it.Cheers,
Hernando,
Matt E- you question what happens when the mining boom slumps etc…I did research on the mines in the area we were buying. Long term susantainability etc. The mine in Moura going through a huge expansion so we’ll keep an eye on that but expected supply to last at least 25 years so it seemed pretty safe. Mt Isa also listed as booming area and quite affordable so thats another option. Seize the moment- jump in. Good luck. Kel
Hi everyone,
I’m trying to find cash flow positive properties in NSW and Queensland, but have no luck so far. I live in Canberra where properties are going up in value very fast, and have five here. What I am going to do is rent out the rooms to uni. students, to come out even or even a bit positive. Rental demand is very high, and housing demand is high too pushing up the values.[blink]
you have to get out there more
You can buy properties in meekethara (w.a) for $30,000 that rent for $90 p/w ( excellent postive gearing)
If u are in victoria simply drive from bendigo to ballarat and look at the country towns in between.
No one in here will ever give you the suburb they are investing in…why would they, its hard enough to find 10% returns . I prefer to look for 7-9% returns in better towns with brick and tile houses…. To all those wingers saying where are the investments returning 10% +… They are there you have to go out there and not sit at the laptop hoping someone will say here you go and make you a millionaire over night.Thanks Jamie for your post.
I couldn’t find meekethara on realestate.com.au and then I did a search on Australia Post website and it does not exist there either.
Is the spelling correct?Cobar in NSW is still showing great returns. I am buying a property there with 10%+ rental yield.
cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
meekatharra is the correct spelling.. I own several there which i rent our to G.E.H.A (teachers).
It is simply evidence that there are 1000’s of cf+ properties out there but I am just saying that no one is going to tell you where to get the good ones , you have to do that your self.I have taken some interest in the Bowen Basin because we have done our research on the area and are reasonably confident that investing on the right properties will result in a very positive outcome, The median prices are increasing as confirmed by the recent historical sales. The population growth is set to increase with the increased production quotas and expectations in mining activity as well as the new mining developments that are in the pipeline. The average rent yield is already quite high in a lot of areas and set to increase in others with high possiblity of capital gain in the short to medium term.
Well after watching the resources boom of WA fly on by, and not having had the time nor the courage to dabble or put our toe in, I have finally been given the ‘nod’ [grad] by ‘himself’ to put our money where our mouth is.
I have ten days spare from the end of next week so I will be driving up to the area to look around and talk to real estate agents. We are in a position to invest in one or maybe two properties depending on the price, but we think that it is a good safe bet to look at building a sizable portfolio in the area.
From just trawling through realestate.com.au, it is clear that there is a lot of activity in the area with plenty of CF++ properties. I imagine that there will also be a fair amount available that one can see from just driving through the towns themselves and talking to people.
The following article is from the Couriermail from last October – given the news story is six months old, the problems with housing is still ongoing and will still take a lot longer to be dealt with. In the meantime, we believe that despite most people thinking that they have peaked, there are still plenty of opportunities so I am going up to do DD and ‘eyeball’ the actual properties and who knows, maybe strike some that haven’t even made it on to realestate.com
http://www.news.com.au/couriermail/story/0,,20654535-5003416,00.html
Astra
“per ardua ad astra”
Hi Jen1 , I’m new on this site to and have just started reading steve’s book. I’v just moved to Mackay from the goldcoast.
I’v found the prices here are so expensive and rent equally expensive.Mackay is a coastal town surrounded by coal mines, therefore there’s plenty of wealthy people here, so i’m guessing thats why the markes is so high. Due to the high demand and lack of rental properties people wil just about pay any price to rent a decent place.
Average 3 bed, 1 or 2 bath houses that need renovating are between $290k and $350k and you can pretty much name your price for rent (Within reason) Because people are so desperate.
I’m only new to property investing and am going to buy my first place in a couple of months. I’m single and only earn $650 a week.
The repayments a month seem so daunting to me and is quite frightening. Can anyone give me any insightfull information about the area of Mackay as i dont have the knowledge or experience about sound investment properties.[blink]Originally posted by slapbass351:Hi Jen1 , I’m new on this site to and have just started reading steve’s book. I’v just moved to Mackay from the goldcoast.
I’v found the prices here are so expensive and rent equally expensive.Mackay is a coastal town surrounded by coal mines, therefore there’s plenty of wealthy people here, so i’m guessing thats why the markes is so high. Due to the high demand and lack of rental properties people wil just about pay any price to rent a decent place.
Average 3 bed, 1 or 2 bath houses that need renovating are between $290k and $350k and you can pretty much name your price for rent (Within reason) Because people are so desperate.
I’m only new to property investing and am going to buy my first place in a couple of months. I’m single and only earn $650 a week.
The repayments a month seem so daunting to me and is quite frightening. Can anyone give me any insightfull information about the area of Mackay as i dont have the knowledge or experience about sound investment properties.[blink]The first one is the hardest Damon.
If you do good research and –
1. purchase a property that is solid and rentable,
2. in an area that close to all amenities like parks, schools, malls, transport etc,
3. use interest only loans,
4. buy something built after 1987 to maximise “on-paper” deductions for your tax return,
5. add value to increase rent returns and cap growth;then you can’t go too far wrong.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi those querying Kambalda in WA
I have an investment property there in Kambalda West (which is considered better than Kambalda East). I purchased nearly two years ago a 3brm brick/tile house. Building inspector said it was one of the most sound properties he had inspected there. Paid $85k. Now the same property has increased to between $120-140k. There is potential to increase this figure by some small reno’s. [biggrin]Rent is $170 pw. I spent quite some time researching the area prior to buying there and really thought I had a GREAT deal. The one problem I have had is keeping a tenant in place. It averages out that the place can be vacant for upto 3-4 months at a time. Not good……..
I keep an eye on the area and trends and have recently checked out realestate.com.au and noticed that nearly all the homes for sale at the moment are under contract/offer. There appears to be something going on, don’t know what yet. Wondering if it’s the same investor buying up big? Has anyone heard anything about it? I also noticed that where in the past you would find approximately 10 pages of rentals available, now there are only 2 pages of rentals.
Anyway, the bottom line for me is that I have decided to hang onto this property over the longer term and try to realise some capital growth.
Happy hunting all
Nieceo
Hi those querying Kambalda in WA
I have an investment property there in Kambalda West (which is considered better than Kambalda East). I purchased nearly two years ago a 3brm brick/tile house. Building inspector said it was one of the most sound properties he had inspected there. Paid $85k. Now the same property has increased to between $120-140k. There is potential to increase this figure by some small reno’s. [biggrin]Rent is $170 pw. I spent quite some time researching the area prior to buying there and really thought I had a GREAT deal. The one problem I have had is keeping a tenant in place. It averages out that the place can be vacant for upto 3-4 months at a time. Not good……..
I keep an eye on the area and trends and have recently checked out realestate.com.au and noticed that nearly all the homes for sale at the moment are under contract/offer. There appears to be something going on, don’t know what yet. Wondering if it’s the same investor buying up big? Has anyone heard anything about it? I also noticed that where in the past you would find approximately 10 pages of rentals available, now there are only 2 pages of rentals.
Anyway, the bottom line for me is that I have decided to hang onto this property over the longer term and try to realise some capital growth.
Happy hunting all
Nieceo
Hi
Our Karratha investment property has been tennanted now since October 2006. Rent $1,300.00 per week. Final cost, $621,000.00. Three months later the same house three years older realised a rent of $1,800.00! We tried to pick up another for $1,000,000 which would get around $2,300.00 per week but were beaten to the post. They are hard to grab but around. I am looking today at South Hedland at a two story pretty grotty townhouse asking $260,000. The rent is only $260,000 but with a cheap reno, who knows. However it is on a block with a seperate strata title . . . ready to submit plans and build. Karratha/Hedland is crazy and the astute purchaser will find gold especially if you are prepared to make th trip and hang round for a while. Blessings. MARKHi slapbass
I'm from mackay and started investing here and the bowen basin about 4 years ago all of mackay seems to be a good place to buy as run down areas are getting better with new high rises the best advice I can give is do the numbers if they work buy it and there is still cash flow positive properties in mackay.
p.s the first is always the scariest
Thanks Rob
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