Hi all,
Is Australia still in the property market for positive gearing? I am finding it extremely difficult finding good properties (i.e. good location, transport, school, shops) that meet the criteria of ’11 second solution’ as per ‘From 0 to 130 Properties in 3.5 years’. Has anyone been able to find any this year?
Appreciate your feedback.
Hi
I hope the market is still good for positive gearing, but I am starting to have my doubts!
I have been actively looking for my first IP now for over 2months and while I have found a number of IP’s that fit the 11 second rule, after investing considerable time digging deeper none actually stack up in terms of positive cash flow.
Is it just Queensland or is the market less than ideal at the moment?
BenI haven’t seen an 11 sec rule property for a few years. It’s a great theory, but not in today’s Aus market.
I don’t think you will find an ‘off the shelf’ pos geared property anywhere (unless you look at small remote rural towns, but I wouldn’t recommend that) – you will have to create one.
Buy a run -down property that can be subdivided and needs a reno. Do up old joint and either rent or sell, build new house/unit on subdivided block and keep as renter. The Depreciation deductions will be great on the new building, along with the profit from sale of old house or the increased rent on it plus the rent from the newie.
That’s about it I’m afraid unless you want to get into wraps and lease options. Not my cup o’ tea.
Finally, commercial property – potentially good returns and cap growth, but unless you go bigger is more risky. Smaller businesses are more likely to move on as they grow or they often go broke, and getting new tenants can be harder if economic times get tight.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
look for mining towns, mine development on the horizon etc and you will find +ve cf properties. ie buy $230ish and rent $400ish. Also, have a look at Katherine, NT. These are the only types of places where the 11 second rule might apply now as the market has changed so much since the book first came out.
For more UTD and relevant info have a read of Steve’s last book 0-260 Properties in 7 Years.
Have funI looked at Katherine a couple of years ago as I heard there was a new major highway planned from The Alice to Darwin, via Kat.
Couldn’t find a local agent, or an agent that handled the properties (they were all out of town – a long way) that was interested. Alarm bells started ringing, and got louder when I saw the same properties advertised on the web for several months without selling.
I kept envisaging high vacancy rates, lack of management, difficulty with maintenance etc. Not enough rent return to offset the possible headaches.
I just did a r/e.com search – found 2 properties for sale. Both were under management from an agent in DARWIN.
Also did a search on Kat r/e agents – none.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi eliz
There is quite a long thread dedicated to this subject at:
https://www.propertyinvesting.com/forum/topic/22508.html
Good luck.Cheers, Paul
Paul & Karen Dobson
negative2positive
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Phone: (02) 4984 9540Talk to us about Wrap Training Joint Ventures.
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Thank you so much for all your replies! I will have a look at the places you have recommended.
I am studying renovations and how it works. Never done it before so not confident with it.
I found this website: http://www.cashflowcapital.com.au/. Has anyone ever bought properties from here? Once in a while a property does meet the 11 second rule but I am not sure if they are good.
renos are great fun, but hard work.
Allow more of everything to get the job done – time, money.
There is a thread somewhere on this forum about cashflow capital. Be careful, research the area they tell you about yourself.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi eliz30,
You can also have a look at http://www.positiverealestate.com.au
They are buyers advocate and offer cashflow positive or positively geared properties.
Regards
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
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