I have been searching the net for IPs to add to my portfolio, i have come accross some IPs that seem good enough, but the only problem i can see is that some of these IPs are located in comission housing areas.Has anyone on this forum had/have any IPs in these ares, is it a good idea to invest in these areas? Do they add to many expances ie maintance etc. Any help would be greaty appreciated>[blink]
Very unwise IMO.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Can you say why it would be unwise Dazzling.
I know an area that is Housing Commision, which is cosiderably lower in value than some of its surrounding suburbs. A suburb nearby was changed from it’s restrictions on housing commission a couple of years ago, and it has jumped in value. In approx 18 months, the council is planning change it from housing commission and remove the owner-occupier restriction that applies to much of the area.
I was thinking that this sounds like the type of place to look for future flips.Mal
Getting out of your comfort zone, can help you become comfortable
Hi there,
you need to work out what type of commission area it is. many people associated commission areas with high crime and low incomes but this is not always the case. Some important factors are 1) who will manage the property and find tenants(2) cost of insuarance for that area/post code (3) what factors may increase the value of the area in later years.
C2
I don’t entirely agree with Dazzling. In some areas of NSW for example Housing Comm enclaves are slowly being torn down with occupants being moved more into the general community. You’d be well advised to thoroughly research the area in which you wish to buy to see if this kind of thing is happening.
Eric
I say unwise because adamj_81 indicated that he wanted to add to his portfolio.
I can only presume from this that he has more than one IP. If that is the case he probably has some equity available.
I’m thinking the following about housing comm. RIP’s ;
Low nett yield.
Tenants who generally are not financially savvy or responsible.
Lots of maintenance headaches and costsI wouldn’t buy anything that had those characteristics…but then I’m not buying it…so don’t listen to what I say. Do your thorough DD on the specific area and make your mind up from there.
Really, I don’t think adamj_81 has provided enough details for anyone to analyse anything.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
It can be rewarding if you get the right property. My friend picked up one in Macquarie Fields in Sydney (the area with the riots recently). She paid $140,000 and resold it a year later for $269,000.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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