Where are cf+ areas for my 1st IP.
looking to spend $90-$120k with a return of say $160-$180.
will look anywhere in aus.
thankyou!
looking to spend $90-$120k with a return of say $160-$180.
will look anywhere in aus.
thankyou!
Cf+
- Thread starter dwlakeshores
- Start date
Do a search on www.realestate.com.au or www.domain.com.au using the search parameters you are looking for.
Cheers
Cheers
broke hill looks like it has some good buys - does anyone have any IP's there?or know any info on the area?
Rixter said:
Strongly disagree with that.
Our group has purchased 4 IP's in the past 18 months, all CF+ and all within 7km's of a major capital CBD. Average consistent growth over the past 41 years has been floating between 11.2 and 12.9%.
dwlakeshores....don't accept this common held notion that the only CF+ IP's are in some outback one horse town with no CG prospects....it ain't true.
If you read Dazzling's other posts, you'll find that he says that he is talking about cashflow positive after all costs.Rixter said:
The key is that he invests in commercial (and reasonably large size) investments, and is not a fan of residential re. Each to their own, but I suspect that the investments he is talking about are not suitable for a newbie. Hapy to accept clarification/correction on that one.
not sure about how these towns will go now but...
I bought a unit block in Mt Isa in Dec 03 for $130K, 3 units, 6 years old, renting at $340wk.
In Sept 05 was revalued at $215K, renting $400wk with potential for more increase in both value and rent after DA and reno work.
Dont tell me there is little growth potential of areas in mining areas. Short term gains very possible as demonstrated above. Maybe i got lucky...but i looked and looked and looked and have no regrets.
What it is like now...not sure, not looking to reinvest in these areas but not all towns can be painted with the same brush
OSS
I bought a unit block in Mt Isa in Dec 03 for $130K, 3 units, 6 years old, renting at $340wk.
In Sept 05 was revalued at $215K, renting $400wk with potential for more increase in both value and rent after DA and reno work.
Dont tell me there is little growth potential of areas in mining areas. Short term gains very possible as demonstrated above. Maybe i got lucky...but i looked and looked and looked and have no regrets.
What it is like now...not sure, not looking to reinvest in these areas but not all towns can be painted with the same brush
OSS
One of Dazzling's other posts (as often stated in his posts on that "other" RE forum) suggests purchasing IPs with:quiggles said:
Land value of IP must be greater than 85% of the purchase price.
Pretty phenomenal figures
regardless of whether they be residential, commercial or industrial!!! And....that's not even looking at the gobsmacking yield percentages claimed to be generated by the so called properties of which are supposedly within (7 km radius?) spitting distance proximity to major cities!!! I'm impressed, or should that be, I'm baffled with........ But hey, if you can do it, why not I say??!! Gotta hand it to ya boy.....you really know how to razzle em' Dazzle??!!
G'day Daz,
dwlakeshores is asking this
If so, would you share some figures with us to demonstrate the point? Thanks,
Regards,
dwlakeshores is asking this
Now, given that you are talking of your group purchasing properties, are your kind of purchases possible to one with this amount of available $$$? Specifically, can DWL be a part of something like this?
If so, would you share some figures with us to demonstrate the point? Thanks,
Regards,
G'day DWL,
A little ol' lady went and bought a property in BH using the FHOG - AND GOT CHANGE !!! Can't remember the actual figures, but she ended up paying NOTHING to buy a property back then. Made the papers in Sydney when it happened. Around that same time, I'd heard of people paying $9k for a house, and subsequently renting it at 25% or more yields.
Is it like that today? Hell, I don't know.....
What have you found? (and, no, I'm not buying at the moment )
Regards,
I heard a GREAT story about Broken Hill (2 years ago?) - it went like this:-
A little ol' lady went and bought a property in BH using the FHOG - AND GOT CHANGE !!! Can't remember the actual figures, but she ended up paying NOTHING to buy a property back then. Made the papers in Sydney when it happened. Around that same time, I'd heard of people paying $9k for a house, and subsequently renting it at 25% or more yields.
Is it like that today? Hell, I don't know.....
What have you found? (and, no, I'm not buying at the moment
)Regards,
Les said:
G'day Les....specifically no....s/he cannot be involved specifically with what we are involved with. With 120K ol dwshorelakes won't be able to buy the front gate.
What s/he could buy is one of the little deals that seem to be everywhere. Ah...that's in a capital city, not timbuktoo as alluded to.
As an example for all of the me too's and me three's...here comes the spoon.
Little retail shop. Perth suburb - small shopping strip of 12 shops. Tenant on a 5 yr lease - been there for 8.5 years. 6 months into the new lease. Tenant paid all outgoings, including maintaining...i.e. small whinging factor.
Capital Aspect
Purchase price $ 115K asking price.
Vendor not willing to negotiate.
100% loan plus costs = $ 125K
Interest = 0.0725 * 125 = 9.06 K
Income Aspect
Nett rent was $ 200 p.w.
Outgoings (~ $ 3.5 K p.a.). That's strata / CR / WR / LT / ins.
Pump some equity in to satisfy Bank, borrow the lot and some little box is producing 1.4K p.a. on a 108% lend. ( $ 27 p.w.)
Not something we would touch, for the following reasons
We don't like strata titles
Cannot control the dirt...and has no dirt.
I think more scrutiny and more searching, and far less spoon feeding required. All but one of our deals have never been on the internet, so all of the chaps on the other side of the paddock may struggle. If it's not on the internet, doesn't mean it doesn't exist.
And Monopoly...yes, you should be baffled...I'm not out to impress anyone. I just can't stand it when people say investors need to go out to whoop whoop to get good deals and it's impossible to find deals in the city....it is impossible if you want to be spoon fed on the internet, but if you sift through the awesome deals out there....big things are possible.
Monopoly, come over to Perth with your hubby....bring your hard hat and steel caps and I'll walk you through the "so called properties" with the gobsmacking signed and executed Leases....not your average 3x1 quaint little house.
Enough...if you don't believe me...not a problem.
I like your reasons for not buying the aforementioned property dazzling and why would you?
what are you actually buying with that deal..a small part of the total building and no control?
I'll be the first to admitt that your in a league way above me when it comes to investing in property and what your outlaying as well, I for one enjoy your posts though- i may be able to squeeze enough together for that front gate but thats about it..if i own it though it'll be a "toll gate".
I'm up for taking monopoly and partner out for coffee if she visits the wild west though, I'm sure we could learn a lot from her as well..
REDWING
what are you actually buying with that deal..a small part of the total building and no control?
I'll be the first to admitt that your in a league way above me when it comes to investing in property and what your outlaying as well, I for one enjoy your posts though- i may be able to squeeze enough together for that front gate but thats about it..if i own it though it'll be a "toll gate".
I'm up for taking monopoly and partner out for coffee if she visits the wild west though, I'm sure we could learn a lot from her as well..
REDWING
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Geez Mate!Dazzling said:
So you're the next IP Guru Huh!, just wondering, how can this "small time investor" get a signed copy of your book, I'd love to read one from ya
oh yeh!, and I'll take you up on that walk through the "so called properties" if Mono can't make it, just tell me, how much would I have to pay for that "front gate" and what do I need to open it with, a key or a spoon?
BF
dwlakeshores said:
Les said:
I recall that story, or something very similar.
It was reported in the SMH for memory - a woman who bought her first home entirely with FHOG money. I think the property was located in Silverton (a very small town NW of Broken Hill) which is famous for it's pub and a guy out there who carves out old pennies for a living.
"Mad Max II" and "Priscilla, Queen of the Desert" were filmed around Silverton and there are pics of the actors in the pub. One pic is of a very young Mel Gibson dressed as Mad Max playing cards with the bad dude with the bad hair cut from MMII.
Anyways.... my brother has lived at town called Menindee on the Darling River for well over a decade and visits Broken Hill most weekends.
On a few occasions I have asked him about the prospects for the city. He's never been very optimistic.
I understand that you can get some pretty high yields out there (well into double-digits), but the capital growth prospects could leave a lot to be desired.
If you are serious about the area - go out and have a squizz. It is a lovely town - it's just in the middle of nowhere.
Mark
bigfella966 said:Geez Mate!
So you're the next IP Guru Huh!, just wondering, how can this "small time investor" get a signed copy of your book, I'd love to read one from ya
oh yeh!, and I'll take you up on that walk through the "so called properties" if Mono can't make it, just tell me, how much would I have to pay for that "front gate" and what do I need to open it with, a key or a spoon?
BF
Well done BF...how very droll....I'm sure that certainly added alot to DWL's understanding and answered his initial enquiry.
...and sorry, that invite extended was for Monopoly only 'cos we are such good pals...I can't be associating with strange men - now can I ??
