Broken hill your thoughts?

[hungsunday]

With capital gains that's only a factor when or if you sell it. Then your hit with the CGT.
It's good to diversify I think, a few houses with growth and 5-6% return and a few strictly for 10-20% yield. At the end of the day with the yield return you get the cream paid to you every week.

 

[Truly Exotic]

http://www.realestate.com.au/proper...essageid=176887706&rsf=emailalert-propdetails

64% ROI on this one!

a quick paint and new floor coverings would be awesome bang for buck

 

[hugh72]

http://www.realestate.com.au/proper...essageid=176887706&rsf=emailalert-propdetails

64% ROI on this one!

a quick paint and new floor coverings would be awesome bang for buck

I would like to know why the vendor is selling, I bet its never fully occupied or doesn't make that sort of rent return. Tempted to ring the agent to hear his sales pitch.

 

[cimbom]

I agree. I doubt he'd be in a hurry to sell if it was actually fully occupied regularly.

 

[Truly Exotic]

exactly,something returning that amount would probably mean that his occupancy is like 20-30% plus he probably mainitaing or even security might be a problem too

 

[see_change]

It's a business , not an investment property .

Cliff

 

[hugh72]

It's a business , not an investment property .

Cliff

Oh I missed that part, not passive, makes sense.

 

[cimbom]

Even as a business, I doubt the numbers are correct. In theory, you could be a live-in manager and work elsewhere as well anyway. The owner would be looking at like $1000 profit per week before expenses like utilities, etc. There's no way that's legitimate at that price point IMO. What does WIWO stand for?

 

[Hulkster]

Even as a business, I doubt the numbers are correct. In theory, you could be a live-in manager and work elsewhere as well anyway. The owner would be looking at like $1000 profit per week before expenses like utilities, etc. There's no way that's legitimate IMO. What does WIWO stand for?

Walk In Walk Out - no extra to pay for stock etc

 

[skater]

It's a business , not an investment property .

Cliff

Hehe, you beat me to it.

IF I was a local, I'd be tempted. Give it a good clean, paint, carpet, kitchen & bath & I'm sure the yield could be dramatically improved, but you'd need to be hands on, I think. This one is anything but passive.

 

[DaveM]

I like how the ad says recently painted... what in 1962?

 

[skater]

Even as a business, I doubt the numbers are correct. In theory, you could be a live-in manager and work elsewhere as well anyway. The owner would be looking at like $1000 profit per week before expenses like utilities, etc. There's no way that's legitimate at that price point IMO. What does WIWO stand for?

Did you look at the pictures of the place. There's money to be spent, and I'm betting that there's a few things that haven't been done, like, Um.....just trying to remember what Elliotte had to do....fire regs, or something.

You also need to factor into it that Broken Hill has yields that are a lot higher than city properties, so of course the yield is going to be good.

 

[skater]

I like how the ad says recently painted... what in 1962?

Hehe, that's recent, isn't it?

 

[ww2_nut]

If looking into buying in Broken Hill now I would be careful. From what I have heard the whole town has been heritage listed and facades cant be changed. Just what I heard

 

[cimbom]

Did you look at the pictures of the place. There's money to be spent, and I'm betting that there's a few things that haven't been done, like, Um.....just trying to remember what Elliotte had to do....fire regs, or something.

You also need to factor into it that Broken Hill has yields that are a lot higher than city properties, so of course the yield is going to be good.

I actually didn't look at the pictures but if they're claiming it's fully occupied at least semi-regularly, then they couldn't have had too many complaints from residents about the state of the property?

I also note that other 2-3 bedroom properties in Broken Hill are currently renting for the likes of $140/week compared to the ~$110/week they claim to be charging.

 

[skater]

I actually didn't look at the pictures but if they're claiming it's fully occupied at least semi-regularly, then they couldn't have had too many complaints from residents about the state of the property?

I also note that other 2-3 bedroom properties in Broken Hill are currently renting for the likes of $140/week compared to the ~$110/week they claim to be charging.

Sometimes the only place people can get a bed is in a boarding house. There's one near us that we had a look at a long, long time ago. Quite pricey to stay there, compared to a unit, and it was really daggy too. They are generally fully furnished, so it's a lot easier to move in/out than a unit, and the same tenancy laws don't apply. The residents were mainly divorced or single males, but there is a strong demand in some areas for people that have problems. I'm not all that up on the demographics, but I believe some of the welfare groups sometimes refer people to them as well.

 

[sumterrence]

I've been looking at Broken hill for a while but still a bit hesitate to invest there, can anyone with broken hill properties share their thoughts and how's their property doing so far?

 

[hugh72]

Declining population over an extended period means I wouldn't consider it personally

 

[christos]

May be cash flow positive, but looking water negative....

http://www.smh.com.au/environment/p...al-water-commission-axed-20150513-gh0ork.html

 

[TMNT]

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