I'd rather buy big land in a "lowlife" suburb than paying $1.2 million for a box in the inner city with a 2% yield.
There's much better value out there.
And people aren't lowlifes for living there.
You might need to change your view of the area so that you don’t let your attitude get pushed onto your pm. If you think of your pm as a lowlife, what will you expect in the way of tenants?
alfrescodining wrote:I'd rather buy big land in a "lowlife" suburb than paying $1.2 million for a box in the inner city with a 2% yield.There's much better value out there.
And people aren't lowlifes for living there.
Agree with the last sentence – just because an area's deemed to be a lower socio economic area or whatever they want to call it – doesn't mean that the people living there aren't decent.
Not sure if I agree on the land comment though – but that's just me.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It really depends on your level of confidence in the tenancy and the level of risk you are prepared to take based on that tenancy.
I used to be hopelessly conservative on my tenancies.
I would stick to a level of lower middle class (in other words, new immigrants who knew how to look after a place and poor people who were on the climb up). Low rent payments, but on the other side .. lower property expectations too.This strategy works on the premise that a person who has worked for a days pay knows how much the value of items is .. and therefore has a genuine degree of respect for the property.
Overall .. thats what i'm really looking for in a tenancy. Someone to respect my property and pay me money for it.
After coming to the conclusion of that last sentence, I then realised that the demographic group really didnt matter .. it was the responsible tenancy that I was looking for. So, I narrowed my criteria to people of ANY grouping .. who were able to pay on time .. and be responsible for my property.
It DOES mean that i will query the property manager till i extract the core elements of the tenancy from him/her, but for me thats worth it more than the money.
I dont pick on race or sex or age. I will however take into account their ability to care and respect my properties.
As an American investment company, we have experience in this area.
We are finding that many investors are now looking into low income housing areas.
With the economical down-turn in Memphis Tennessee, our rental properties are across all ranges, from good neighborhoods, to bad. I would recommend that you have a target marketing (purchase) area, but also be open to other opportunities to grow your portfolio.
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