NSW Facebook friend's first IP purchase...

The OP is female.

 

If Moree has some potential, why haven't you bought into the area with the half of regional NSW towns?

 

Stupid question but what does op stand for?

 

Original Poster. Thread starter. I.e. me in this case. I am female.

 

Thanks gockie.

 

Yep...what @Gockie said.

 

what's cheap.? Not familiar with this area

 

Cotton country, agriculture and not much else from memory when I've been there.

 

Thanks, NSW? is this where NBirch buying for clients?

Did this area achieve any growth in last 2 years? just curious

MTR

 

I doubt it, its one of the few places in NSW along with Broken Hill that has very weak or negative population growth.
I do recall that NB was buying there at some point.

 

Seems to be upwards... but somewhat slowly and definitely not consistently though.

 

ouch, not promising
I suppose they won't lose their shirt like those in mining towns, but not a good start.

 

Yeah... a cheapie... as long as he gets good reliable tenants it should be fine for cashflow. But not a CG star though.
I was shocked he signed away his right to a cooling off period with his own volition, it being his first property investment in that location...
Oh well.

 

He must be incredibly naïve, or perhaps he thought this could be used as a bargaining tool to buy at a lower price??

I think what's interesting is we can probably all look back at some mistakes we have made especially when starting out property investing, just got to make sure we don't repeat it

Those cheapies are really not my cup of tea because they will most likely not come close to cash flow positive once you take out all the extra maintenance costs due to age and then of course you perhaps have another risk, the quality of tenants.

I have offloaded most of my old properties due to maintenance involved and only keep the new stuff now. All to their own I guess.

Marisa

 

I didn't get to the bottom of why he decided to sign away his cooling off period, I figured what's done is done and I would only make him feel bad if I asked why he did that....

Maybe he thinks he is being clever by doing that ("look at me, i'm a committed buyer") but I would be laughing if I was the vendor. I'm sure it's not like it would be a once in a lifetime buying opportunity...

You are completely right here. I know the mistakes I made as a property buying newbie... definitely have learnt from those experiences and won't do them again.
But its absolutely better to learn from others where possible.

 

You can still get houses there under $100k
Who knows, he might be laughing in 10 years.

 

Or it could accelerate his goals depending on the lessons learned.
I daresay most people here have gained success due to the failures in the past.

 

He could well be.

I guess Moree will do somewhat similar (or... maybe better?) than Sydney for the next few years where other newbies may be investing.
Or it could be like my sister's Mt. Austin property... no CG in the last 4 years... she missed the Sydney boom completely...

And at least he didn't buy an overvalued OTP...

 

The really important question is what did he pay???
I bought a place in broken hill for 48k late last year
Spent a bit on it - all in for 75k , rented in a week for $200
Got it revalued at 100k
So yeah crap town but still a workable outcome

 

No idea. When I see him next i'll ask.