Bowral

[zaligirl]

Hi All,

Have been looking to buy in Bowral.

270k on 800m2, rent $180, run down fibro is what I have been looking at.

What are your thoughts on this area, seems like good buying as this is a desirable location.

Ta.

 

[alexlee]

Zaligirl, you do realise that it's 3.5% yield, when interest rates at 8.5%? If it's an old house there won't be much depreciation. Assuming you're on 30% tax rate that means you're probably going to lose about 12-15k a year cashflow if you borrow 100%?
Alex

 

[zaligirl]

thanks Alex

Our long term goal is to do a small reno, then eventually knock down and rebuild, land over 800m2 in Bowral for this type of money is rare. But your right in regards to the yield, it is quite low. Any thoughts on were to buy, an hour out of sydney for this type of money. i have looked at western Sydney but have been turned off.........

Ta

 

[alexlee]

Our long term goal is to do a small reno, then eventually knock down and rebuild, land over 800m2 in Bowral for this type of money is rare. But your right in regards to the yield, it is quite low. Any thoughts on were to buy, an hour out of sydney for this type of money. i have looked at western Sydney but have been turned off.........

Turned off by what?

 

[zaligirl]

Turned off...............

Turned off by what?

Ive always asked this ?, " IF I purchased an IP would I live in it." And the answer is no I would not live in western Sydney, that is my own personal thought and I'm sure there are a million people out there who would disagree.

Ta

 

[sparky23]

Hi Zaligirl

Welcome to the forum!

Whereabouts are you from? There are tons of old houses on big blocks in the Illawarra in your price range.

 

[alexlee]

Ive always asked this ?, " IF I purchased an IP would I live in it." And the answer is no I would not live in western Sydney, that is my own personal thought and I'm sure there are a million people out there who would disagree.

Each to his/her own, of course. But that's one question I've never asked myself. I ask 'will SOMEONE live in it and pay me rent?' I don't buy shares in a company based on whether I would use their product. It's just that if you have to buy where you would be willing to live in, you really limit your choices.
Alex

 

[skater]

Each to his/her own, of course. But that's one question I've never asked myself. I ask 'will SOMEONE live in it and pay me rent?'

This is exactly right.

 

[evand]

Its not right or wrong. It's an opinion.

This is exactly right.

 

[Modal Harmony]

Hi Zaligirl, I have an older sister who has finally sold her PPOR in Bowral and took a really long time to do so. Apparently there was some press a while ago with the title "Town for Sale" due to the amount of houses on the market. I hear it's quite a sleepy place with no nightlife, so if your tenants are happy with that, then go for it.

Still think the yield is too low as Alex has said.....

 

[redsquash]

Where is Bowral and who cares?
Seriously , I think you could do better in a capital city, take a few weeks off work and renovate your guts out , then really get some decent money in a vibrant market, rather than a sleepy backwater where people from rye park would come to visit and let loose!