New Investor

Hey everyone

Still learning how to use this site. Owned three properties in Sydney 10 years ago but due to a divorce sold them all around GFC time. Wife received the cash and I got the business. If only I had kept all those properties (one now worth $2.2m on acreage and the other two were inner city apartments both doubled in value). The things you do for happiness.

So I am only now in a position where I have sufficient funds to buy one or two properties. Sydney seems too far gone for me (I live there) so now looking at other areas.

I do have an option to purchase a property in Darwin which is a forced sale (partner is in the middle of a divorce). Property was built in 2014 for $709k (two properties and land) and now appears to be worth around $560k. It is involved in the NRAS scheme and pulls in $20k tax free for the next 7 years plus rent of around $30k in rent. So net earnings from tax offsets, net income and tax refund is around $50k.

On paper it looks great if Darwin has bottomed. Would love to hear anyone's thoughts.

 

So far so good. I have a mate who works for RAMS and they have the provider on their approved list and the area isn't on the banned list. Income side we have no issues as I have a substantial income now. I will certainly check with the lender again.

 

For me I would not touch Darwin or NRAS properties both just don't make good investments for many different reasons. Have a look at Brisbane, i'm not biased honest

 

BTW sorry to hear about the break up, this is a good way to send you broke quickly.

 

I live in Darwin and might be able to help?

Darwin has bottomed in parts for certain stock. Other parts of the market are still cratering.... You have to be real careful.

Maybe PM me the address? I'll be able to tell you in 5 sec if it's got any chance at all of being a good idea.

Here's a quick and dirty list of the no go zones...
-Anything in postcode 0800, 083X.
-Anything on the wrong side of the Storm surge maps (insurance will kill you)
-Anything with strata over 1k pq.
-Anything without land (ie apartments) unless you can get it stupid cheap (under 250k) even then check the strata.
-New houses on tiny blocks

There's a few others but I've got a hunch that list should answer your question.

Also...how do you know it's worth 560k? It could well be 400.... Like I said you need to be real careful up here.

 

Hi @hammer, thumbs up to you for this solid, no nonsense post.

 

I’m a newby and also looking in Darwin. What is it that’s wrong with 0800? Is this only for investment or PPOR as well(if that even makes a difference). Thanks.

 

0800 is the CBD. It has a dangerous oversupply of apartments. Priced have dropped 30 percent and are still dropping.

The strata costs for these apartments are really high as well.

Impossible to see an upside in the medium term.

The CBD is crap for investent and PPOR at the moment.

If you want something cheap, buy a townhouse in 820. With a bit of digging you can find an old one for round 300k now.