Finding a hood mortgage broker

Assuming a purchase of $125k or so, did the agent give an estimate of expected rental income around that purchase price?

 

Coburg in Vic ... you'll find plenty of hood brokers around there

 

Not sure why you would call Aussie when you have direct access to many great brokers on the forum?

There is the easy road and the hard road, and you take the hard road. Everytime.

 

Yes .. Moree have some of the highest rentals it seems... The fent was $185 weekly... BUT... The council rates are atrociuos .. At nealy 2k per year !

 

You'll find this is the case with a lot of really cheap locations. Councils still need to raise a certain amount of capital to maintain the suburbs regardless of if it's a $100,000 suburb or $1,000,000 suburb. Rental yields may be good in cheap locations but other holding costs are disproportionately high because goods and services in that location still need to be paid for.

It's not just council rates. It also applies to water rates, property management, selling agent costs, maintenance, insurance, strata corporation fees. The list goes on and on. 8% rental yield is not positive cash flow in this instance. Sounds good in theory but in the real world it still looses money.

You've posted that property managers in the area aren't interested in leasing this property and that mortgage brokers don't want to write a sub $100k loan. It's because this scenario costs them money. It's a loss making headache when they'd rather be working on something straight forward that is profitable.

 

Some people enjoy a challenge Nick, or like to wind the members up here

Under 2k a year is not bad.