Hi
I’m a novice to CF+ properties (expert on negetively geared[thumbsdownanim.
I’m am currently looking at this property in the North West of WA.
$380,000 purchase price
$ 21,500 Costs$ 32,160 Expenses pa (Interest only, fixed)
$ 35,000 rental return pa$ 55 per week rental return.
It looks good on paper but it is an old fibro home, the capital gain is good but being a mining town it has a limited life ?
Is there anything else I should be looking for? It is a lot of money to outlay. Any thoughts?
Your help would be greatly appreciated.
Hi, if were me, I wouldn’t do it. The price is so high that you could get a house in a metropolitan area where captial gain is assured, (although cash flow may be a problem) and a fibro house could be a BIG problem ie, does it contain asbestos? Unless it was built in the last few years, it probably is, and you could be up for massive costs of either making safe or removal. Mining towns have limited life spans so eventually, the house will be worth nothing. Australia is littered with derelict mining towns complete with roads houses shops, all empty. Mining towns are good places to make positive cash flow, but for how long? It might be worth doing if the price were more reasonable, like up to 150k. Anyhow, that’s what I think. Cheers, Alex
Alex Shaw
Thanks Alex
I’ve been talking it thru with my husband and we have decided that it is alot of money to outlay.
We will keep looking for more resonablely prices CF+ properties I know they are out there.
Thanks again
Ros[thumbsup2]
Hi Ros
i too think you have made the right decision to let this deal go.
for the potential of $2500 profit per year
You can do way better, but its good to ask the question its all part of your learning process.
regards westan
USA deals, cash flow equity and capital growth all in one property.
International Property Consulting Pty/Ltd.
Property Investing New Zealand Ltd
http://www.iproperty.net.au
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