Hi all, What are the pros and cons about having an IP in a rough area. I mean it will be unfurnished, it will be insured, there will be a bond. So if anything does happen it I'm sure it will be covered by insurance. Also I've noticed in these areas the rent is usually higher than in other areas. I guess this is offset by the lower capital growth.
Does anyone have any experience in this area? From an investment point of view, I'm thinking it will be a good investment, Is there anything I am missing? Or anything extra I need to take into consideration?
Thanks
Hi there
the main thing in such areas is to have a good property manager –I note that we purchased a property in an area which used to have a bad reputation – but due to excellent property management, the area has turned aroundthanksBe fussy with who you choose to occupy your property. Let tenant have a dog (to deter intruders and keep good tenant happy). Install security screens, doors and security lights. Good Luck.
Some areas i have looked at such as parts of Rotorua and wanganui in NZ property managers don't want to know about .
Also in the US according to Westan there are large areas that property managers wouldn't go even with an armed escort !
Everyone has their own ideas about investing but I personally would not touch a rough area. I do not want the stress of the house being destroyed or the rent not being paid, saying that, the house can be destroyed and the rent not paid in any area. I personally go for capital growth in coastal areas on large blocks. Thats what works for me, I would rather have 2 quality properties than 10 rough area properties, but each to their own. Good luck in your investing and do what works for you.
Cheers
Vyvyen
You must be logged in to reply to this topic. If you don't have an account, you can register here.
