Very unlike me to get on a forum such as this to share my details, however after just finishing Steves latest book and myself a very amateur P.I. was hoping that a few of u may be able steer me in the right direction.
Got caught in the hype of boom 2003 (Wollongong, NSW) and bought unit with mate (wont do that again) with long term view before his position changed and i bought him out at high LVR.
Loan currently $290 I.O but unit would only be worth $300K if lucky and rent yield only 4.2%.
Should i cut my losses now and attempt to sell and save my contribution to the current loan for another attempt from scratch now that this time around i have a little more knowledge and stay clear from neg gearing.
Some searches led me towards mining towns in Central QLD where houses selling for same price as my unit but achieving extra $300 a week in rent. A couple i saw were slightly positive cashflow, however, was wondering what some dangers might be in investing in such a rural mining town (somewhere near Mackay)Cheers
Matt
I can’t comment on whether you should sell and cut your losses…but I swear by mining towns.
Have been investing in Karratha WA as well as Mt Isa Qld for the last couple of yrs now.
Both areas are going through massive expansion and both are major regional centres. Both have extensive govt. services and infrastructure and service the outluing area.
Both are still booming while city centres have stalled.
I target new 4 bed 2 bath homes and tend to buy vacant land and add the house.
There is huge demand for new housing in these areas as most of the existing stock is very old and dated.
The new stuff commands a premium in price as well as rent.Karratha is still showing staggering returns with property prices going through $700k for new houses with market rents rangeing from $1000 pw to $1500pw. Long leases with company tenants.
Mt Isa is more moderate with property prices for new houses ( there currently are none) rangeing from $455k to $500k
I am currently building 16x in Mt Isa with some presold off the plan.
3x to build in Karratha with plans to do up to 20 for the year.
And btw.. no, I’m not some huge developer, just a small time investor with the odd partner and jv investor who are keen to have a go.
kp
Rents projected by local agents are in the region of $600 pw to $700 pw.
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