Charleville QLD

Doing a quick search on Charleville I am surprised I cannot bring up any results here.

I know its way out "woop woop" but a quick search reveals there are some houses on the market for instance one 5 bedroom for $115,000 that is getting $180 a week in rent.

To my quick calc's thats an 8.14% yield? Without drilling down further you would think this would be CF+ or Neutral??

I know the town will probably not experience any capital growth what-so-ever, but if one was just looking for income it could perform ok (that is until the place becomes vacant and you can't find a tenant)..

Anyone have any comments/thoughts on Charleville?
 
sorry, no thoughts about charleville, but try typing in:

site:somersoft.com charleville

into google to get heaps of results.
 
To my quick calc's thats an 8.14% yield? Without drilling down further you would think this would be CF+ or Neutral??

Yes - that yield is correct. But if you borrow ALL the money at say 5.14% and overheads of paying mtce, PMs, repairs etc run to 1.5% then your nett yield is
1.5% :eek:

1.5% of $115,000 = $1,725 per year. not worth doing / taking the risk.

If you had all the money in cash, then you are getting 8.14% - 1.5% = 6.64%

You can get 4-5% on a bank deposit with out going to woop woop and taking on tenants, repairs etc and other unknown factors. Why would you bother?:(
 
If that's the house I'm thinking of, I rang up about it a while ago. Agent mentioned that roof needs replacing and has asbestos in it.

A mate bought out in Charleville last year, he's happy with his purchase, but travels through that area a fair bit so knew it well, and can keep an eye on it. He's also bought a place in Bourke NSW which he says is even better... He's never had a problem with tenants in either place though.

I made another post about Charleville under another heading, but speaking to local agents and mate last year - major industries farming/cattle and large abatoir set up to handle kangaroo export. It was just explanding when I called last year, but not sure what's happened since Russia slowed roo meat imports.
 
Yes - that yield is correct. But if you borrow ALL the money at say 5.14% and overheads of paying mtce, PMs, repairs etc run to 1.5% then your nett yield is
1.5% :eek:

1.5% of $115,000 = $1,725 per year. not worth doing / taking the risk.

If you had all the money in cash, then you are getting 8.14% - 1.5% = 6.64%

You can get 4-5% on a bank deposit with out going to woop woop and taking on tenants, repairs etc and other unknown factors. Why would you bother?:(

because the 115k doesnt get cap growth?

eg. mum had 290k in TD @ 7.4%

Took out and invest in property with approx 4% net yield, but has had 80-100k cap growth in the last yr
 
because the 115k doesnt get cap growth?

The OP, had said he was expecting "I know the town will probably not experience any capital growth what-so-ever" which, although his expectation, in reality has not been the case historically.

If you were expecting zero CG - then it is not worth doing as I said.

However, if you look at the figures on Charleville, back in 1999 the median priced house was around $50K, now it is around $140K - nearly triple :eek:

I can still think of easier ways to make $90K in 10 years though ;)
 
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