Hey guys,
I’ve just had settlement on my first IP and am starting the search for my 2nd. I’m looking in Orange, N.S.W, in the bad part of town up around Spring st. and Jindalee ave. The place i’m looking at will be CF+ and is on a nice piece of land. I’ve been able to find past sales and have found out that it sold 3 years ago for $20,000 more than the advertised price now.
Firstly I was wondering whether people think it’s a positive or a negative that it was $20,000 more 3 years ago and also whether anyone has any experience buying in this part of town or just any advice from other people who have bought in the bad part of town and how it worked out for them.
Thanks guys.
To be honest with you Stringer… I do not know about that area at all. But some basic tips/thoughts to improve your investment property is.
Don't just look at capital gains but also rental yield. Are you able to rent this property for a decent yield or is it not worth the hassle (my bets are on that it definately is worth renting out)
If old and dilapitated maybe renovate to recieve capital gains and higher yield.
Remember, 3 years ago was when the GFC struck and property values dropped almost immediately. So don't be daft and think that its a bad thing that it was worth more 3 years ago… Your property value will still rise (eventually)
Having said all this… If you feel that it is worth asking on this forum whether or not its good then chances are you do not think it is good enough. Always go with your gut and if you need advice, ask a professional.
Hi Stringer
I am starting to do my research on Orange for a IP property, how have you come to say that part of town is bad as that was my guess because of all the cheap property there, have you been on the ground?
Thanks
Hi Mate
Listen talk to any investor and they will tell you that you need to have some capital growth plus good rental yeild.
I would be a bit weary buying in that place you are talking about. Because if <moderator: delete language> you need to sell, ask yourself these questions. WILL I be able to sell? WILL I be able to sell fast and at least cover my costs? If you answered no to any of those questions then save a bit more cash and buy a house a bit closer to the town center. You will find two or 3 blocks away there will be some good bang for your buck there for almost the same ammount of cash and the quaility of tennat will be better.
Good luck.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
