Wee Waa - No Takers?

From: Land Holdings


Hi,

I've been on this forum for a while however at the beginning of this year I moved to Wee Waa to teach Maths. It has been an exciting experience to say the least. I own a couple of investment properties in Sydney, however I am now looking at investing locally. There are some good deals out there but I would like to know of pitfalls. There is a block of 5 one bedrooms for sale at 95k, claiming total rent of $370 p.w. I know there is something wrong with it because it has been advertised ever since I've been here - no takers? The town only has a population of 2000 people. The main industry is cotton with some wheat and cattle.

I'd be interested to hear what other people think. To others out there who remember me: Paul Zag, Jeremy Laws, Kippy, The Wife and numerous others - Hello!

Land Holdings.
 
Last edited by a moderator:
Reply: 1
From: Asy .


Hey Soph!

Glad you are liking Wee Waa!!

I think if you try to get finance you may find out what's wrong with it...

It's my understanding, and NO doubt The man himself (Rolf) will correct me if I'm wrong, that banks don't like you to hold whole unit sets, and also, banks don't like to lend in towns where the pop is under a certain limit (Which I think is about 10,000).

Might be worth your while talking to a couple of lenders, and seeing if this theory is right, if you can get a loan, then start looking a little harder at the deal... the numbers sound GREAT!

Let us know what happens,

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
Last edited by a moderator:
Reply: 2
From: Robert Forward


Hi Land Holdings

It sounds like a very good cashflow property, but tell us what would the vacancy rates be like? Does is get high occupancy, say over 95%? What sort of tenants are you looking for to rent these properties to?
Is that industry going to remain in Wee Waa to supply you with tenants?

Perhaps talk with a government organisation and rent it to them for things like emergency accommodation for those on hard times etc, in other words public housing held by a private owner.

If you are unable to get finance, try and get "Vendor Finance" on the block.

Just a few thoughts.

Cheers
Robert

Property Inspection Reports @
http://www.creativefinance.com.au

The Sydney "Freestylers" Group Leader.
 
Last edited by a moderator:
Reply: 2.1
From: Paul Zagoridis


Welcome back!

Glad you got the gig! (nearly called you "Babe" ;-) Nella says Hi!)

Asy is probably right that finance is difficult. That's ok though there are many ways to skin that cat. Send me an email.

I generally like that deal except
1. vacancies can be a pain
2. Rates are normally astronomical

I've seen great deals like this become negative cash flow real fast because local conditions are overlooked.

Regards and good luck. (send me email!)

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
Last edited by a moderator:
Reply: 2.1.1
From: Jeremy Laws


Hello again! Thought you had fallen off the world. Glad you hadn't! IMHO the BEST properties are either - 1)When an agent calls you and tells you 'Its not listed yet, but are you interested in this...?' or 2)One that has been left on the shelf for a long time. Country towns can be tricky to buy in because of problems with Mortgage insurers and population levels. Add to that (which may not be a problem - contact a local bank!) not many people know about them so there is a reasonable chance sales might not happen quickly. Bear this in mind if you ever need to offload. You have good quality stock however so that shouldnt be a problem. And the great cashflow would pay for another 'Bluey'! If you don't want to buy it, I would love to have a look at it! Let me know what you have done. Great to hear from you again!
 
Last edited by a moderator:
Reply: 2.1.1.1
From: Land Holdings


Thanks for all the replies! I'm glad I haven't completely been forgotten. I'll keep you informed. Anyway, it's only three small weeks until the school holidays and I'm going to be one happy girl! I'm heading back down to my home town of Sydney with the great beaches and beautiful ocean views.

If anyone every thinks teaching is easy, try keeping 27 kids entertained on a hot 38 degree Friday afternoon for 80 minutes with only yourself and blackboard.

Glad to be back in action!

Regards,

LH.
 
Last edited by a moderator:
Reply: 2.1.1.1.2
From: Rixter ®


On 3/22/02 3:52:00 PM, Sim' Hampel wrote:
>If they were a classroom full
>of teenage boys, I'm sure
>you'd be able to keep them
>entertained very easily ;-)
>
>Of course, you'd most likely
>lose your job, and possibly
>even end up in jail, but you
>get that :p
>
>
Hay Sim,
Nothing wrong with being in Jail..its some peoples Bread and Butter & water (pardon the pun)

Happy Investing,
Rixter :)
 
Last edited by a moderator:

Sim

Administrator
Reply: 2.1.1.1.1.1
From: Sim' Hampel


I apologise if you (or anyone else) took offense LH, it was meant in jest. Looking back though, I guess it was a little crass and unneccesary. My apologies once again.

sim.gif
 
Last edited:
Top