Hello all,
I am looking at a property close to CBD in Adelaide and there is an house 300 m away on the same street rented to housing commission. Will this affect the value or turn away tenants? Does it make it a wrong investment?
Thank You in advance.
regards
SanthoshNo – no one cares about who is living 300m away from them. ;)
There’s housing trust properties sprinkled all throughout Adelaide, so this is a common occurance. Where it might be more of an issue is looking at the amount within one suburb/area – but the State government is selling its stock off at an extremely fast rate so even in that case there could still be value in buying in those areas.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hello all,
I am looking at a property close to CBD in Adelaide and there is an house 300 m away on the same street rented to housing commission. Will this affect the value or turn away tenants? Does it make it a wrong investment?
Thank You in advance.
regardsSanthoshI could be wrong of course but if it bothers you, it could bother other prospects (tenants and buyers down the line). I know it would bother me enough to investigate more in depth. It’s not necessarily a wrong investment (especially if it’s reflected in the price) and as Corey mentioned they are being sold off by the government so that could also work to your advantage in the future 😉
Sorry can’t help with a clear yes or no answer but hopefully the above helped anyway? 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Thank you gents.
Is Adelaide a good place with good cap gain prospects? This property I am looking at is negatively geared now and is at Daw Park, Adelaide. Its 8 kms from CBD. Its a 3 bed 2 bath house in good renovated condition. asking price is $640K and can be rented at $450/wk.regards
SanthoshHi San,
Wow !! I have heard (from two on here that give regular updates – DT and Corey Batt) that Adelaide has been getting a good uplift in values recently. But I could never see myself paying $640k for something that only brings in $450 a week. With all other costs added, this could be HUGELY negative geared.
Is this one that fits your goals? i.e. you might have a Host of positive geared IP’s already, and need a neg geared one or two to offset the others. Corey or DT can probably tell you if that price sounds “About right” or “over the top” anyway.
Too rich for mine…. ;)
And, re the Housing Commission place, I’m with Corey – I don’t know many of my neighbours who live 100m from my place, let alone 300m. But then, if there was a regular congregation of Harleys and leather-clad persons with patches at a house 300m away, I would take notice, and perhaps steer clear if purchasing…… Discretion before valour !!
Benny
Hi Benny / Corey / DT and others,
Thanks. I have pulled out due to the negative cashflow. I am hearing from BA’s that its not possible to get positive cashflow properties in metro cities. Positive cash flow will be available in regional area but there won’t be any growth. whats your opinion?
Its now my 9th month searching for my first IP. I have learned a lot but still looking for the good IP.
Thank You
SanHi San,
I am hearing from BA’s that its not possible to get positive cashflow properties in metro cities.
That could be right if wanting to be within a few Km of a city centre. But further out, I’m sure you can still find +ve geared properties (in Brisbane at least – maybe not in Sydney or Mel, but I am not there).
Generalisations can be a trap – beware. Do your own research to arrive at YOUR truth.
Perhaps reread Darryl’s story – he created his own truth by buying in Regional and/or Outer suburbs of major cities where he COULD get a positive return, and then HE added Equity (price growth) by renovating:-
Could you do that too? ;)
Benny
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