Help – I am a new investor and my mind is boggled!

I am from a regional area at Tamworth. You can still buy 2 or 3 bedroom properties here for $150K to $200K. Consider all your options before jumping in.  It will take you years to become cash flow positive in the city.  Your increases in price in the city still have not landed in Regional NSW.

I was cash flow negative until my new strategy of fully furnishing the houses in 2012 to the present time.  So far of the 4 properties purchased 3 are cash flow positive.  My strategy is to fix the bathrooms and kitchens (if needed) paint, then fully furnish with single beds and rent to the 457 visa holders in the Tamworth area.  There are plenty of jobs that the local kids will not do, (abattoirs & baida), so there are plenty of these temporary visa holders in the city.   The tenants are great payers, on time every time. 

Since 2006 until 2011 and on a low income below $30k I have invested in 4 properties in this area, initially renting unfurnished and suffering from bad payers and damaged houses even with Real Estate Agents as managers.  I now have a new strategy, my returns are with the purchase prices $105K returning $700 P/W, $120K returning $700 P/W, and $185K returning $360 P/W.  They are all cash flow positive – the only one not cash flow positive with a purchase price of $160K returning $255P/W which still has to be renovated and fully furnished. 

I have retired from working at age 60 in January after only 2 years of this new strategy on a passive income of $104K.  I still use agents to manage the properties.

Nashy i think you made your point,,,, in fact 3 times to be precise.

I have to say there are some areas of Tamworth you certainly wouldn't invest in.

I can think of many a safer town to invest with both positive cash flow and capital growth prospects.

Cheers

Yours in Finance

What does it mean to gear 110%?

My name is Hari Yellina and a property Investor around Australia and Asia. 

I have been asked a question about mortgage brokers, They need to own properties before giving an advice. 

My answer. 

• Mortgage broker is like any service industry agent, We cannot expect him to buy houses, before he can advise you about loans. 
• Doctors don't need to own hospitals to service you. 
• President of a country doesn't need to be a Billionaire or Military officer to run the country
• Lot of start ups are started by young people. like facebook and google. 

The point I am trying to make is, every one here is to make money. All you need to know is if he is getting you the best deal from the market. If he is honest with you. Does he have proper knowledge about the industry. How organized he/she is. 

Some brokers dont make lot of money because they are very honest with their clients. Choose wisely. 

Hari Yellina

Property Investor.