G'day all…
Just seeking some advice on my next purchase. For 300k I can purchase a 2 bedroom unit CF+ in Darwin about 70sqm, but in Hobart I can purchase a 800sqm block of land and put up a 3 bedroom house. With FHOG available what do you guys think would be the best buy? cheers
tuggerDarwin all the way. Inpex has just announced a $25billion gas plant will be built in Darwin starting in 2010 that will require 4000 workers. That is an immediate 4% increase in population and there is already a very low vacancy rate. Darwin is rapidly becoming a capital city with stores like Harbourtown being built. Rents are increasing at a rapid rate and, to my mind, Darwin is the place to be investing.
Cheers
K
Just be careful what area of Darwin the investment property is in. Many undesirable tenants and neighbors. Also a big difference in professionalism of R/E's and PM's. Choose wisely.
Yes, I would agree with C2, except that undesirable tenants/neighbours aren't restricted to areas: they are all throughout Darwin. For example, you can have a $1M house in Fannie Bay, right next to a Housing Trust block of flats. I would definitely recommend physically inspecting any property before you buy it. I have had a REA agent tell me of giving "undesirable nieghbours" a carton of beer prior to an open inspection at a nearby property on the proviso that the neighbours get out of their house during the inspection.
I also agree with C2's comment about REA and PMs. I had a disastrous PM when I first invested up in Darwin, but the one I have now and have had for the last 4 years is golden.
K
thanks for your comments guys… I have changed my approach a bit and have purchased a block of land with the intention of building our PPOR in Tas. 800m2 block for $110,000, 7km to hobart and having plans drawn up for two townhouses, of which we will live in 1….hopefully that does the trick. Thanks again guys
tuggertugger,
Good to see you at least got something.
Linear,
Definitely agree most areas and some are worse than others.
What area was your unit in before?
I had units all over the place. Over the past few years I have sold out of Nightcliff, Coconut Grove, Moulden and Darwin Central. I still have a few in Stuart Park.
Linar,
We have some of the same areas covered.
Who does your PM or is it spread amongst the various RE's? Mine is spread.
Do you think you may have sold a little early or have you gone on to bigger and better investments?
Hi C2
We only use Focus First National. We did use a different agency when we first started out but they were a disaster and Focus have been excellent. I wouldn't use anyone else.
We did sell early and could have made more money but we put the profits straight back into property and have done quite well. We now develop. While if we had held on to all the property we would have had over 10 positively geared properties, I prefer not to look back at what "could have been". My husband and I quit our fulltime jobs over 2 years ago, after just 3 years of property investing. If we had held on to the properties we wouldn't have been able to quit work.
We have more properties on the market at the moment. Some people have asked me why I am selling positively geared property, especially in a market that is still rising. But for me, cashflow is king at the moment and I can make more money from the money I have in the bank than any capital growth I could get from holding on.
I'm happy to give more details in a PM if you are interested.
Cheers
K
K,
I see you are using Uncle Mick. That's what my wife calls him. Will pm you.
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