i have a little money to invest and feel that if i don't do something soon re; get into property, i,ll soon be staring at poverty!? I was looking at purchasing an investment property in Gracemere just outside of Rockhampton because of its potential grow due to industrial growth in that area. You can get a new 4 bedroom home for around 360k and rent it for around $340 a week. Now i,m just confused! So whats your call Scamp
Wow , a McMansion in Rocky isnt cheap is it?
Why do you see this as a road to prosperity? depending on your income and how little the money is you are talking about, 360k and $340 a week could well be a boat anchor on your progress.
hi yarpos, yeah its a bit plush…not! They tell me its a growth region with the new power plant that is to be built there plus all the work coming up in Gladstone. I thought there might be the chance of some good capital growth. What would be your suggestion? Do those figures not stack up??
Drop me an email and i can put you in touch with an excellent agent contact of mine based in Rocky.
He can give you all of the low down on the area and in particular Gracemere.
I have purchased dozens of properties through him in the last 10 years.
Richard Taylor | Australia's leading private lender
Start small… much smaller.
Thinkruss :
Try and look at it from the other side. Don't start out with "I want a 4 bedroom home" but start out like this :
Figure out how much money you realistically could spend on a house, with mortgage. I think if you're a starter, this could be anywhere between 120.000 and 240.000 AUD$.
You can do a few things with this money :
– Find a fixer upper home.
– Find a townhouse with 3 bedrooms
– Find a cheap home in a bad neighborhood close to university or hospital or close to CBD.Consider renting out 1 or 2 of the bedrooms to students of starter workers that want to live away from their parents but don't want to pay premium rents. You can ask 90$ for the room per week , and share bathroom and kitchen for instance. If you do this for 2 students, you can get 180$ times 4 = 720$ dollars per month. Another benefit is that you can ask them to share electricity / water and council taxes with you ( don't share the tax benefits though ).
Another thing you could consider is buying a bit bigger fixerupper home for 200.000$ and divide the upper floors from the lower floors. Put kitchen / shower etc both up and downstairs, make some outside stairs to the first floor and rent out the whole first floor for 200 or 300$. This way you have privacy, but share the mortgage.
You can even decide to stay at home while you rent out both upper and lower floor for a positively geared investment.
That's what I did when I started out investing in homes, I had 3 students for 6 years in my own home. It can actually be quite cosy ! Make sure you only get girls, and make up a clear contract that they can't make a mess in the place though, and no parties ! There's a lot of students who actually study and don't party, and they are all looking for places where they can have a good sleep and not the common studentparties etc.
Good luck.
thinkruss wrote:hi yarpos, yeah its a bit plush…not! They tell me its a growth region with the new power plant that is to be built there plus all the work coming up in Gladstone. I thought there might be the chance of some good capital growth. What would be your suggestion? Do those figures not stack up??
they may stack up depending on your income, what you want to put in and the real growth potential of the area. The other poster here has given you a lead which may get you a more objective assessment of the areas potential, something I am not in touch with. I was just reacting to the price which more than equates to capital city prices , but then its booming up there
Hi,
Not sure how to start a new thread yet
i'm just starting out in property investing, like 2 days ago, I've read the book 0-130 props, i think im missing something, i have looked at 113 properties here in tasmania, not 1 meets the 11 second solution, props for $175,000 rent for between 120-170 per week, at 350,000, the avarage rent is around 320 per week.
Help or direction from your experience of using the formula would be greatly appreciated.
Thanks
joseph scott wrote:I have looked at 113 properties here in tasmania, not 1 meets the 11 second solution, props for $175,000 rent for between 120-170 per week, at 350,000, the avarage rent is around 320 per week.It's what I have been telling you all along : Houses are overvalued. They are overpriced.
You can look at 500 houses , and still not find one that's positively geared.
And it's not because rents are too low, it's because the price of the house is too high.10 times average income… crazy.
'Holding costs' … crazy.
Housewives owning 3 PI's… crazy.Don't worry, the crash will solve it all.
Hi Joseph,
Property affordablility has changed a lot since that book was written so it may be harder to find a property that meets that rule in the area you are looking at.
Steve's next book 0-260 properties in 7 years may give you a little more information on the current property market. Adding value to the property through renovations is one strategy that will increase the rent into positive territory.
But don't give up. Positive property deals are out there.
Cheers,
Kylie
Hei joseph
The book is outdated. No longer applied in this current investment climate.
May be when it crashed 50%Cheers
Scamp, Kylie, God of Money,,
Thank you for your responses…
Joseph
Thank you for your response one and all!! Good ideas Scamps
Hey Scamps did you see the news the other night? They reported a continued surge in property for at least 3 more years to come!!
thinkruss wrote:Hey Scamps did you see the news the other night? They reported a continued surge in property for at least 3 more years to come!!A surge in property for sale I reckon. There's no way property will go up for 3 more years, they have already gone down 10% to 40%, and will continue to plummet. More and more for sale, very few buyers ( if any ) and when sold, they are usually sold at 10% under the discounted asking price.
Can you provide a link to the news item ? Or was it some spruiker TV commercial disguised as a news item ?
Property will not go up for at least 2010. The bottom will be around January 2009, and prices will only reflect this bottom around 2010 – 2011, and the prices of 2010 will only be reflected in 2011 / 2013.
Well, that's my personal opinion anyway.
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