Hi Guys,
I have read this forum for years and I don't ask many questions because usually I can read my gut feeling and intuition. I am feeling a bit lost at the moment and would like to ask for some advice and clarity about my next purchase.
Situation: I am preapproved for $135,000 however I really do not want to spend that much. What I do know is that I want to purchase for positive cashflow. Below are some of the issues that I have been thinking about:
* I would preferably like to purchase 2 x properties which are positive geared. I know I am looking in very rural areas and more than likely not major towns. I am not too worried about Capital gain in these areas. What concerns me more is a lot of these areas could face a downturn if mining or agriculture industries collapse. Also these properties are generally pretty run down and I don't want to purchase a property which could require a lot of maintenance or renovations. The other thing I am thinking about with these areas are that if I buy and hold, they could be up to 100 years old in 20-30 years.
* Trying to find 2 properties to purchase within my limit is going to be challenging.
* If I purchase 1 property closer to my limit, it probably will not present a ROI as high as a cheaper property.
* I don't mind buying a property that requires basic renovation ie: carpet, kitchen, bathroom and painting but a lot of the cheaper houses could have structural issues, if not now... in the future. Also if I shell out on a basic reno, in these areas... it will not add too much to the value.
* I would prefer to buy close to or located in major towns but this is near impossible with the limit I have. There are 100's of options in quite rural areas available within the limit but I have no idea where to start or what I am exactly looking for other than a good return on investment.
Sorry about the longwinded above but I thought I would just type as it came into my head.
I guess my main question is: Would you buy just because it presents a good yield but it could be a crap of a house or would you take a lower yield but a better property?
Any thoughts on the matter would be very appreciated. Thanks
I have read this forum for years and I don't ask many questions because usually I can read my gut feeling and intuition. I am feeling a bit lost at the moment and would like to ask for some advice and clarity about my next purchase.
Situation: I am preapproved for $135,000 however I really do not want to spend that much. What I do know is that I want to purchase for positive cashflow. Below are some of the issues that I have been thinking about:
* I would preferably like to purchase 2 x properties which are positive geared. I know I am looking in very rural areas and more than likely not major towns. I am not too worried about Capital gain in these areas. What concerns me more is a lot of these areas could face a downturn if mining or agriculture industries collapse. Also these properties are generally pretty run down and I don't want to purchase a property which could require a lot of maintenance or renovations. The other thing I am thinking about with these areas are that if I buy and hold, they could be up to 100 years old in 20-30 years.
* Trying to find 2 properties to purchase within my limit is going to be challenging.
* If I purchase 1 property closer to my limit, it probably will not present a ROI as high as a cheaper property.
* I don't mind buying a property that requires basic renovation ie: carpet, kitchen, bathroom and painting but a lot of the cheaper houses could have structural issues, if not now... in the future. Also if I shell out on a basic reno, in these areas... it will not add too much to the value.
* I would prefer to buy close to or located in major towns but this is near impossible with the limit I have. There are 100's of options in quite rural areas available within the limit but I have no idea where to start or what I am exactly looking for other than a good return on investment.
Sorry about the longwinded above but I thought I would just type as it came into my head.
I guess my main question is: Would you buy just because it presents a good yield but it could be a crap of a house or would you take a lower yield but a better property?
Any thoughts on the matter would be very appreciated. Thanks
