Is this a good property to wrap

[navycso]

Hi chris here

The property is located in Darra which is in the outer suburbs of Brisbane (15km from CBD) Darra backs onto the ipwich and centenary highway. The property is a modern brand new lowset unit with 3 bedrooms 2 bathroom and a single lockup garage. A tile, brick construction. asking price 159k. i looked up on The Real Estate Institute of Queensland and the only info they had on there is that the median house price is 115k and the median rent for a house is $175 p/w. New housing developments are in the process of being built, since then the population has started to increase sharply but has also increase the geo boundary. The brisbane city council has recently completed a suburban centre imporvement project in the shopping area on Darra station road.
Darra is right next door to the Centenary suburbs (mount ommaney) (median house price 420k median rent 220 p/w). Noting the shortage of property in brisbane could this suburb be the next boom???? I know it is not a positve cashflow (which is what i ultamitly want) if i were to Wrap it then i could possible achieve that. Or am i better to keep it for about a year or two renting it out and see what prices are like in a year or two and then wrap/sell the property. This would be my first IP. Oh exciting news i am off to a Rick Otton seminar on the 16th. Yeah me.

all these questions not enough time

chris

 

[Carson]

Hi navycso

I’m also new, though I think it will be difficult for a complete reply with out you stating your objective. You talked about positive cash flow, though you seem to be counting on capital gain.

Not that the two should be exclusive, though objective of both are normally different.

Good luck,

Mike

 

[Kevmeister]

What rent can you get for that house *specifically*. The median is just that - a median, and what you can get for your specific house might be far different (up or down).

 

[paulzag]

Hi Chris

You are in Sydney and the property is in Qld. That is a big red flag against wrapping.

I've wrapped long distance (Vic, Qld and NSW) but I've also been called and idiot (by my father even and he wasn't joking).

If it's your first wrap I'd suggest finding the best deal you can anywhere if you are going to do it long distance.

Units are also tricky to wrap (although I've wrapped or lease/optioned them too).

Let us know what you think after you've done the Rick Otten course. I suspect you'll look closer to home

regards

Paulzag
Dreamspinner

 

[Jacque]

So, Chris, how did you enjoy the Rick Otton course?
I have to agree with Paul here, in that long distance wrapping can be highly time consuming and inefficient. After all, that time spent travelling could have been better spent in your own state.

If you are going to go down the Otton way of wrapping, then cap gains are important to you, as refinancing your wrappee out as soon as possible means that the property must be valued by the bank (at refinancing) as being worth at least what the wrappee paid for it (or hopefully more) to avoid the "negative equity" scenario.
Just be sure to work through your figures and fully understand what wrapping will do for you. Getting finance is often the biggest stumbling block in wrapping, as well intentioned wrappers run out of equity and money before they can make wrapping the business that it needs to become.