Hiya all. Im 23 and saved up around 15k so far. Uni just finished and I got a couple of months holiday [biggrin] so I was thinking of using my time to look for a +ve geared investment.Am new to this so go easy on me guys [biggrin]
I live in brisbane and i’ve looked around the market abit. Basically I want a 3 bedroom house which rents in brisbane for maybe $250 per week.
To make it a +ve geared property what is the price range I sould be looking for to purchase. Does anybody have any suburbs in mind that I should concentrate on. I was thinking out on the skirts of brisbane maybe logan or inala, or around there
Cheers in advanced.
Hello New Collector
Good on you for taking the first steps, and for asking for some tips.
I take it you are looking for a cash flow positive property where the rent brings in more than the expenses. It is very hard to find these in the current market. Basically you are looking for a rent return of 10.4%pa. So a rent of $250 pw to be cash flow pos would require purchasing the property for $125k or under! You probably haven’t seen too many properties for sale at this price for a number of years.
At the moment you will have to make the profit by renovations, subdivisions or some other way to value add.
Steve’s 2nd book is a really good resource to learn more about how to make profit in any market.
All the best with it.
Dale
Hey newcollector,
Im in the same boat as there. Im 21 with 2yrs uni left. I live in Perth and have been looking for CF+ve properties also.
From my searching i have realised that finding residential property in the perth metro area with high rental returns is near on impossible. I then started looking into regional and rural areas and managed to find a couple of places that were almost +vely geared. However, when turning to commercial property i immediately found a number of small offices for sale. The one i am currently looking into is asking for $55,000. and could be rented out for 5500 p.a. As it is a private sale u could expect lower closing costs and i worked out that after expenses and taking out a loan of $60K would net me about $254 p.a.
Although this is a tiny annual net return, it will have cost nothing to aquire so its free money, also any capital growth would be a bonus also…
So my advice would be to explore as many markets and options as possible, as there are deals out there, you just have to be looking in the right places.
Cheers and Good luck!!
ChogesThanks for all the replies guys.
Hey Choges, where is this commercial property. Capital city or suburb. Also, where did you find it. It would be great to increase the sources I use to search for properties. ATM I am looking at realestate.com.au and domain.com.au as well as real estate agents I pass by
You could also consider Lesae options or Wraps to turn a negatively geared house around so that it puts a $ or 2 in your pocket.
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.com
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