Picks For Positively Geared Property
- Thread starter james_w
- Start date
I have some picks, but cannot disclose as yet as I dont want to over heat a warm beach
Some areas have been hit in recent times which is where the money is to be had.
was waiting for you to pop your head in but no locations listed pm me just one please
Told the neighbour what the cheapie was listed for and his jaw dropped and he said "what, is that all?" He has a tiny 3br in very poor condition and the bank just valued it at the same price as the big 4br is listed for. If I had the money, I'd be buying that house
I have some picks, but cannot disclose as yet as I dont want to over heat a warm beach
Some areas have been hit in recent times which is where the money is to be had.
Come on mate, this is one of your worst brags ever.
I have some picks, but cannot disclose as yet as I dont want to over heat a warm beach
Some areas have been hit in recent times which is where the money is to be had.
waits patienatly for a location to be disclosed...
I take it cyclones don't worry you ?
Moving further inland, any thoughts on St George Qld?
Buy in price seems ok with solid yields however unsure about the growth drivers that other area's to the north are enjoying with mining investment.
Last couple of years seem to have had solid CG however unsure if there's much more in it at present.
Any thoughts appreciated.
Buy in price seems ok with solid yields however unsure about the growth drivers that other area's to the north are enjoying with mining investment.
Last couple of years seem to have had solid CG however unsure if there's much more in it at present.
Any thoughts appreciated.
My concern with these towns is what happens when the resources boom dries up and there are no companies willing to rent your home? Then there is a mad scramble to get your home rented to the first applicant for the cheapest price....
Is that a valid concern ?? Is that a hill to hard to climb ?? What exactly do you you mean by dry up ??
If a mine has 80 years worth of reserves and a supply contract for the next 30 years, what exactly is your fear ??
Is it high enough to stop you dead in your tracks, or are you good enough to jump right over it.
Obviously these areas are high return / high risk which I understand. However I don't see how houses can continue to sell for the prices that they do, and get the rents that they do in towns that basically have nothing else except for a mine.
Also call me sceptical but there seem to be a lot of houses for sale with new or near new 12 month leases. Seems like a lot of people are getting out while the going is good and while they can offer a 6-12 months of contracted with huge rent.
And by the way - don't get me wrong I am not against property investing - I have 1 and building a second atm, It is just at this stage I would hate to be left with a $400k debt and no renter in a 2 bit town in the middle of nowhere.
Just my thoughts....
So would I, but I wouldn't mind owning something in a 2 bit town in the middle of nowhere - if it was very close to a mine that needed housing for it's mine workers. In that case, it wouldn't be a 2 bit town and it wouldn't be in the middle of nowhere.
Your choice....sounds like you've already made it. Good luck with your strategy.
Even one has differing risk levels.
There is probably nothing wrong with buying in a mining town as a portion of your portfolio to offset risk.
At the end of the day you need to understand the underlying commodity price and future supply / demand to work out if you believe the town is to thrive against that of the project(s) at hand.
If it's a new one horse town (single company) that has kicked off a project with marginal profits, in an environment with rising operating costs and volatile price swings be careful.
If there are plenty of diversified minerals and companies with the largest employer running a highly profitable operation (low production cash costs) then you're fine. Price volatility won't impact low cash cost producers to the same extent.
Just think about why the town is prospering now and ensure it can in the future. The deal is more than just initial purchase & rental yield.
There is probably nothing wrong with buying in a mining town as a portion of your portfolio to offset risk.
At the end of the day you need to understand the underlying commodity price and future supply / demand to work out if you believe the town is to thrive against that of the project(s) at hand.
If it's a new one horse town (single company) that has kicked off a project with marginal profits, in an environment with rising operating costs and volatile price swings be careful.
If there are plenty of diversified minerals and companies with the largest employer running a highly profitable operation (low production cash costs) then you're fine. Price volatility won't impact low cash cost producers to the same extent.
Just think about why the town is prospering now and ensure it can in the future. The deal is more than just initial purchase & rental yield.
What's the downside as far as stability of rent goes (ie are paying usually paying rent on time, given they're always on site and probably aren't around to pay rent)?