does any one have one there? I used to know a few people who just bought there,
wondering whats happened since then
http://www.realestate.com.au/proper...essageid=183908116&rsf=emailalert-propdetails
12.2% ROI isnt too bad
I've got a small block of 3 x2 bedroom besser block units there. I haven't had any issues with them.
With that house, I'd be concerned with the condition of it. The advertisement says it's liveable as it is, BUT take a look at the tenant. Is the place clean, under all that mess? Is that market rent for a similar house? I'd presume not, since I'm getting $150 for a 2 bedroom unit, but it could be due to the state of the property. Sure, they've been there for 7 years, and may possibly stay another 7, but is that the best use? Would it get a lot higher rent with a coat of paint & new carpets? Or is it in a crap part of town, and would be hard to get a tenant? I can't answer that one, so you'd have to do some research.
Broken Hill has always been a cheap place to buy into, with a very good yield. Some would say that it's a gamble, buying out there, but we've been happy with our purchase, and it came at a very nice price tag with a lot of cashflow.
This one is one of our Regional properties, and it's sole job is to churn out cashflow, which it does nicely. We know we will never see much CG from it, and that's fine because we've got a heap elsewhere doing that job.
I don't believe in retiring to LOE, I believe in living off rents, so a few properties with high yields don't go astray, however I would be very concerned if my entire portfolio was made up from areas with limited/no capital gain prospects.
