Cashflow Capital
- Thread starter Texas
- Start date
Yes, tread carefully. My experience wasn't good. Don't use their finance broker if you use them. I had to pay a fee to their broker he was going to refinance my loans and get some supper cheap rates. Never experienced such a pain in the **** rooting around getting endless papper work and info only to be told I couldn't get a loan. Went to another broker, who only needed the financial s from my accountant who for free put the loans out for tender and had five banks keen to do business. Also one of their properties they wanted a commission on, was advertised by a regular agent and a price was able to negotiated way below the price cash flow capital had on it, I didn't buy it but I saw it had been sold about 6 months later at a price below what I had negotiated. I didn't feel comfortable with what they had to offer in the USA, after signing up it all seemed a bit suspect to me. May be some people have had positive experience with them it will be interesting to see if any-one replies with a positive experience.
Tex
Most of these companies are crooked operations.
I bet they are offering you new properties between 450 - 550k in resource towns in Australia. They get the sale and they get a hefty commission. I have heard around 20k
The problem is a lot of these towns now have a massive over supply of new residential properties as the development their was too fast for the population growth. Gains in a lot of these towns will be stunted for years to come. Be particularly weary of anything you are offered near coastal Queensland or coal towns in NSW.
The problem is that these companies don't care about you or your goals.
Having said all this I am into resource towns and think they can work well but you need to understand the underlying supply and demand. Something that these companies don't care about
Thankyou Buster and Strongy for posting and appreciate you taking the time to share your views. I'm not a client of theirs though, like many, are attracted to double digit yields apparantly on offer as they sound like the answer to the holding cost pain. As you say Strongy they look to be getting a commission on sale from the vendor rather than a buyers agent fee being charged and no doubt it would be a sizeable fee built into the purchase price. Ultimately i think its better to do the work and research to help me sleep better.
More generally, I dont have an issue paying a fee for performance if its deserved and is real. Most of us would probably agree with that right!
Im just struggling with the concept of investing in high yield mining towns as against established large cities with long term largely stable median prices. This may be comming from ignorance as I still have more research to do. My main concern is the more pronounced boom bust cycles often seen in mining towns and the heightened potential to end up in a negative equity position with no tennant. Ive seen this in Dysart Qld for example being directly affected by the coal price falls and resulting job losses last year. That obviously goes to your point Strongy about avoiding coal areas atm.
Anyway enough of my rambling, I simply have research to do. Again appreciate your thoughts.
Any suggestions on areas you consider worth investigating in Qld?
Cheers
Tex.
More generally, I dont have an issue paying a fee for performance if its deserved and is real. Most of us would probably agree with that right!
Im just struggling with the concept of investing in high yield mining towns as against established large cities with long term largely stable median prices. This may be comming from ignorance as I still have more research to do. My main concern is the more pronounced boom bust cycles often seen in mining towns and the heightened potential to end up in a negative equity position with no tennant. Ive seen this in Dysart Qld for example being directly affected by the coal price falls and resulting job losses last year. That obviously goes to your point Strongy about avoiding coal areas atm.
Anyway enough of my rambling, I simply have research to do. Again appreciate your thoughts.
Any suggestions on areas you consider worth investigating in Qld?
Cheers
Tex.
Thankyou Buster and Strongy for posting and appreciate you taking the time to share your views. I'm not a client of theirs though, like many, are attracted to double digit yields apparantly on offer as they sound like the answer to the holding cost pain. As you say Strongy they look to be getting a commission on sale from the vendor rather than a buyers agent fee being charged and no doubt it would be a sizeable fee built into the purchase price. Ultimately i think its better to do the work and research to help me sleep better.
More generally, I dont have an issue paying a fee for performance if its deserved and is real. Most of us would probably agree with that right!
Im just struggling with the concept of investing in high yield mining towns as against established large cities with long term largely stable median prices. This may be comming from ignorance as I still have more research to do. My main concern is the more pronounced boom bust cycles often seen in mining towns and the heightened potential to end up in a negative equity position with no tennant. Ive seen this in Dysart Qld for example being directly affected by the coal price falls and resulting job losses last year. That obviously goes to your point Strongy about avoiding coal areas atm.
Anyway enough of my rambling, I simply have research to do. Again appreciate your thoughts.
Any suggestions on areas you consider worth investigating in Qld?
Cheers
Tex.
Why Queensland?
What commodity do you want to invest in?
Just adding another nail to the coffin.
This BA group started sourcing properties in USA Detroit, some 2-3 years ago. I have heard of a few investors that got burnt by this group and what they have been sourcing has been inferior product.
As far as buying in mining towns, I personally believe it is the wrong time of the cycle to be jumping in and I see this strategy as high risk at the moment. QLD has been hit, mining towns such as Karratha in WA has also fallen back, rents/prices as much as 25%.
As you are chasing cash flow do a little research on SE QLD area, and I would search the forum, any posts on this area.
I personally would be looking at West Syd cos the market is rising, capture growth and if you look hard enough you may secure a property with reasonable yields.
MTR
how good is this??? identical product was pushing $900k 2 years ago
http://www.realestate.com.au/property-house-wa-baynton-114262471
http://www.realestate.com.au/property-house-wa-baynton-114262471
You sold at the right time
Oversupply at the moment in this market, could prices continue to fall, I am told rents have also fallen back considerably. I am not sure what is coming on the market in terms of vacant blocks etc. ???
MTR
You sold at the right time
Oversupply at the moment in this market, could prices continue to fall, I am told rents have also fallen back considerably. I am not sure what is coming on the market in terms of vacant blocks etc. ???
MTR
the thing is this whole resources is finished bear argument is a bit over sold I think, being counter cyclical I think it would be an ok time to enter the market, especially a large diversified town such as this. newman could be a different story.
Hi Strongy
No particular reason for Qld but rather a starting point. Going by the BREE stats for committed projects and mega projects I would think QLD and WA would be the areas to investigate in terms of Resource towns.
Cheers
Tex.
Have a look at this link, high yields low entry level - QLD
http://somersoft.com/forums/showthread.php?p=1050802#post1050802
I totally agree. China, Indo, Vietnam, Malaysia, India, they all still have a huge appetite for our resources. The sooner investors stop getting sucked into the negative news the better off they will be.
Same same with Gladstone (not that it's a mining town, rather an industrial city).
Some EXCELLENT buying right now and very good long term prospects. But it seems the herd only likes buying when it's too hot (and a bad time to buy). They did overbuild on the H&L packages and second hand ones of these are excellent value now... i.e 1-2 year old 4/2/2, $410-430k, rent for $600-650pw, awesome depreciation.
Just renewed my lease $750pw for 18 months off a $535k purchase price.
Well done, that's a good return
Nerang
Here is one in Nerang going to auction which could provide great returns due to dual income. RE agent quoting around $400-450,000. Am told Nerang market is starting to move. Do your own dd of course.
http://www.realestate.com.au/property-house-qld-carrara-114320135
I purchased a mortgagee property in this area for $360,000 renting close to $700 pw.
MTR
Here is one in Nerang going to auction which could provide great returns due to dual income. RE agent quoting around $400-450,000. Am told Nerang market is starting to move. Do your own dd of course.
http://www.realestate.com.au/property-house-qld-carrara-114320135
I purchased a mortgagee property in this area for $360,000 renting close to $700 pw.
MTR
I was looking at cash flow or a flip in QLD, the BA I was working with was also involved in selling a property on behalf of a particular bank totally different area, it was going to auction. I ended up snapping it up, purely for return
