Investing under $300k for Cashflow Positive / High Yield property in VIC ?

Agree with Corey – if cash flow is the aim of the game then don’t limit yourself to one geographical location.

The only issue with that is <15km to CBD and CF+ don’t match up in Melbourne generally. There certainly is a strong population growth for Melbourne, whether this translates to the same population growth in regional areas where you might find cash flow neutral/positive is another question.

Tread carefully and always make sure you weigh up all the factors of an investment – not just the cash flow.

You need to go outside Melbourne- find a block you can subdivide and sell off the new lot to pay down debt or build the dual occ and get 2 incomes to be cash positive. There are properties like this within 100K of Melbourne CBD where rental demand is high- easy to commute to work.
Property may cost around 200K+. Build cost about $150K+. Rental income about 600/week+

P Donnelly how do Australian residents go for borrowing in Asia ?

What is the maximum lvr we can borrow.

Funnily enough we can’t cope with the demand from Asian investors wanting finance to invest in Australia.

Cheers

Yours in Finance
0-40 Properties in a decade. Ask me how.

Sure but that wasn’t the question.

Question is how much can I borrow against the property ?

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

jmnes12 wrote:

Asian investment properties are generally very hard to get finance for. Typically it’s cash only, or if you’re a premier account holder at HSBC or another global bank equivalent you can get mortgages with preferential rates. However this is getting harder…

Quite right unfortunately, only exception being international banks, and even then mostly inter-Asian ones like HSBC, Bank of China, etc – not only that, but non-residents also cannot open standard bank accounts for rent deposits, bill payments, etc, so really impossible to do without local representation to cover all of that.

On the upside though, affordability is far better – you can get positive cashflow properties yielding much higher percentages than in most other developed countries at a fraction of the price (starting at around $25k, so really a minimum mortgage deposit in Aus) – and tenants are very stable, and docile as lambs in the vast majority of cases.

So, in practice, the price of one average property in Aus can get you anywhere from 4-8 of them here in Japan, which also accounts for better hedging and diversity (one tenant leaving means 12-25% of the income stream stopping, as opposed to 100% in Australia, plus better socio economic and geographical spread).

The caveat is that this 7-12% net pre-tax yield p/a or so comes at the expense of capital growth potential – the last four years have been kind in major cities here, but prior to that we’ve had two decades and a bit of deflation and price drops (hence the excellent deals that can be found now).

SiteManager wrote:

Hi All,
As a beginner investor, I’m looking for investing under $300k property for Cashflow Positive / High Yield property in VIC state, it can be any type House/Town House/Apartment, it must be existing one as I do not prefer to buy new OTP or H&L package.
Where about that you’d suggest me to invest ?
Note: From Steve McKnight seminar, he mentioned that Ballarat VIC 3350 is one of his property investing location, so I guess he can’t go wrong in selecting the area ?

Hi @sitemanager to just answer your question for decent yields in VIC without too much risk I would consider Ballart, Bendigo, and Wodonga as viable options. Mildura possibly at least the vacancy rate is tight but I haven’t checked the economy there recently to know what the current vibe is.

I see you are a new investor, I would certainly not recommend investing overseas at this point in time.

Is Melbourne your own backyard?
There are strong fundamentals in Melb, highest immigration in Australia for one.
We have already seen considerable growth in many areas.
If you are looking at buy and hold house unless you go regional, townhouse or develop, ie build at rear of development site it will be difficult to achieve cash flow positive properties.

Have you looked at Geelong?? I think this area has been earmarked for major infrastructure in the near future.

There is still cash flow properties in 17 km ring, west and north, perhaps not as desirable areas but may be worth looking at pockets. I have been developing townhouses in Thomastown close to rail, these will be cash flow positive with depreciation schedule. Around $350K mark, this may/may not suit but it would fit your criteria of cash flow positive and relatively close to CBD.

Beware that older properties that are slightly cash flow positive they can easily turn into negative because of the higher maintenance issues.

MTR:)

jmnes12 wrote:

I would say without any on the ground intel, be it a spouse, relative or someone you can trust there is no point in buying overseas property

Agree completely, once you venture away from home it becomes less about real estate due diligence and more about team due diligence – there’s simply no way to personally handle matters from afar in any efficient manner – putting together the right team who have reliable local representation, expertise and know-how is the main skill set an international investor requires.