Hello everyone. I have for several months now been a keen reader of the forums here. I live and work in London. I left Australia eleven years ago in my early 20’s. I plan to return to Australia in two years time, with my British wife and two young children to settle permenantly.
My wife and I have been interested in property for about 5 years now. We talk about property a lot. We watch every real estate program on cable TV and buy many books on real estate. We are well knowledged up on real estate. We’ve read Steve’s 0-130 book and hence found the website. It is our dream to manage and develop a real estate empire. Our goal is to control our destiny and as much as possible to work “school” hours and to have flexibility in how and when we work, and to do some good. We are not afraid of hard work. Our motivation springs more from a genuine interest in real estate, architecture and town planning than it does in making a buck at any cost. We have no desire to make a profit at anyones expense. We believe very strongy in a good deal being a fair deal to all parties.
Our dilema is that we have a four week period early next year in which we will be visiting Melbourne and we would like to establish the bread and butter basics of our empire. Realistically this would be the acquisition of several rental properties, the beginings of an empire.
We plan to eventually live in the Gisbourne / Macedon region, (about 50km west of Melbourne), and would like to buy investment properties that are accessible within 1 hour of this area.
We have been dealing with a mortgage advisor and we have pre approvals for about 400k of borrowings at 6.72%. Realistically this means we can buy probably two or three rental properties for between 180-250k each. Our problem is we want positive cashflow, we figure we should be looking at 8% gross yield to cover vacancys and expenses.
The big question we have is, is this a realistic proposition, to find two or three properties at 8% gross yield, in the area we are looking at which is basically Sunbury/ Macedon / Gisbourne / Bendigo / Ballarat, anywhere that is accessible from Gisbourne / Macedon, and to do it in four weeks.
Are we mad ? Is the market just too highly priced, should we come back in 2 years time and look then ? Are the deals there in this market for where we are looking
Hi,I think you would be lucky if you could get 3-4% in these areas.
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