Positive Investment Property

[Jay-684]

Just wondering if anyone on these forums aims to purchase positive geared property, and if so how have they gone with it?

I'm thinking of possibly purchasing a property in the next 12 months either interstate or in country NSW to rent out, but due to the fact i'll be fresh out of uni and on probably less than $40k p.a. I'll want to try and find a place that allows the rent to cover the repayments on the loan. So far when looking (this has only been a few hours) all the properties which have looked to be able to do this are in towns with tiny populations, increasing the risk of finding a tenant.

Any experiences would be appreciated. Even though I am doing a Business(property) degree at uni I am still very much a novice in terms of the practical side of property.

 

[bullmarket]

Hi Jay

One 'easy' way of doing it is through indirect property...ie...listed property trusts (XPJ Index on the ASX)

The advantage of LPT's is that they are much easier to get into and out of than direct property and you can spread your capital over different property classes and geographical regions much easier.

LPT's like REU, RAT, GSA, MPS are on prospective yields from ~8.5% - 11% atm...you should be able to get a line of credit or a loan for less than the above yields...

anyway, just my food for thought

good luck

bullmarket

 

[moses]

I own a rental property in a small country town (Coonabarabran) which is positively geared. There is never a problem finding tenants, although I would recommend aiming for clean neat tidy properties that clean neat tidy people want to rent.

The risk with small town country property is that values can remain flat for say 10 years which is frustrating if looking for capital growth. But when it moves it can be spectacular; in my case the value has jumped by +60% in the last two years, and prices are still rising. So I'm now looking for more property and regard my stock investments merely as a way of paying interest on speculative land acquisition.

goodluck,
Moses

 

[crackaton]

Hey not a bad idea