Hello everyone,
I would like to ask you all a question – all replies welcome!
Can you tell me if you purchase properties that are cash flow positive in country towns/rural type areas?
The reason I ask is that I was reading an article and it said that you should purchase in towns with at least 50,000 people due to rental demads or lack of them.
Is that something you think important or do you just look at the positive cashflow and purchase anywhere? I dont want to get stuck with vacant properties!
Interested to hear your feedback!!
Have a fun day people – I am off to work soon
Lee [evo]
Hi Leebee1,
Others may disagree but I say – don’t buy in towns less than about 30,000.
There have been too many meatworks closures, mine shutdowns, rural downturns and there is the everpresent pop drift to the big cities in the past. These things are ongoing and usually unpredictable. Most smaller places rely on 1-3 industries.
If you do manage to get a CF+ place in a town somewhere – what do you gain?Maybe $30 week in your pocket. That is gone if the hotwater system blows up.
Then you have the cap gains issue. Yes you can gett CG but the market is more predictable and “smoothed out” in a larger centre.
Finding a buyer can be time consuming unless a boom is in progress.
I suggest finding a city property with a problem you can fix, or a snmall development opportunity if that is your bent.My opini0n only – I am not a proffessional – I know nothing etc etc.[eh][biggrin]
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
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