All Topics / Help Needed! / Advice pls – How to get deal over the line
Hi all
I seem to be encountering a shortfall of about $25,000 to $35,000 when comparing the selling price to the rental rates when searching for properties. When I look at the going rents for the area in general, the rents are kind of low in my opinion.
Any advice as to how I can work things to push it over the line, so to speak. This is to get it to be closer to or into positive cashflow.
Looking for first investment property so I am lost and getting more feel of things.
Thanks everyone! [cap]
rgds
Answers come from the courage to ask
I know JUST how you feel ! [blink]
No matter how much you look; the return always falls short of the cost of holding the property! I reckon there are too many investors satisfied with 3-4% gross return.
On the other hand,I suppose if it were close to neutral as we all want, there would be heaps of people looking for them!
I have just bought a house showing 5.1% return but I can and will develop the property to eventually get me maybe 8%.
(See my thread on Adding Value Forum)This is the only way I can see to get ahead of the game. Also quite safe. I am scared of my poor ability with shares – I have a poor record.(I bought Telstra2!!)
Best of luck I can sympathise… [cowboy2]
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
I think the trend of advice you will see is to add value, to find something that is scarce, to buy a porblem propety and fix it up…It takes a creative mind to invest at the moment and you need to start looking for reasonably priced properties that you can upgrade to make the rental return higher.
We have held off from buying until the right property comes along that will provide cash flow +ve returns, it takes patience and thinking outside the square!
Good luck
Achieve the Dream!
Hi Alexpk,
Can i ask what state you are in and whether you are looking in regional or city areas?
Regards
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Hello Alex,
Have you considered Commercial property?
It is actually not as scarey as you may think.
You just need a little more cash to start, as the loan ratio is usually at best 25-30% deposit downWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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