Hi everyone,
i have been reading these forums for years now leading up to my first property purchase. But I think its time for me to ask for a helping hand.I am in the process of purchasing my first investment property, and have found two that i am prepared to make offers on (subject to advice recieved in this forum). Please excuse my inexperience.
PROPERTY #1
North Parramatta, 3 bedroom unit located in a quite culdesac and five minute drive to the station (Parramatta). Rents are qouted by agents around the 350 range. 33 year old building with little work needed on the interior of the apartment (value adding potential). After Steve’s excellent ‘buyer beware’ spreadsheets, i have established that this property is almost neutrally geared (given that i can reduce the asking price, which is very possible). Downfall…………………. this building is located one block away from the following. A small prison, a small cemetry and what seems to be a mental hospital. WHAT A COMBO!!
PROPERTY #2
Parramatta, 2 bedroom double storey unit, located five minutes walk from the station. In reasonable condition, no work needed, 10 year old building with rents qouted by same agents as above at roughly 320. Although after looking at the spreadsheets in accordance to asking price, this investment is very negatively geared. Despite this though, the location is gold.
They both have their pros and cons. According to other forums on this website, things like local prisons and cemetries dont affect capital growth a great deal. But seeing that im negatively gearing, its all about location right?
any advice will be worth its weight in gold.
Thanks for your insightsTarik
Sydney
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