I currently am house hacking a 3bedroom house in a small mining town in central queensland and it has been going quite well. Over the past year I have been looking in my town (approx 6k population) and surrounding areas for my next property.
"Almost" all single family homes in queensland is not going to be a cash positive investment (at least no where around my area). So I have been focusing my attention on multifamily property where there is at least a chance to make some positive cashflow.
After searching there has finally come up a 4plex that could be a viable investment. It is located in Tannum Sands, Queensland. Its a small residential town that services a larger regional city of Gladstone which has some natural gas plants, a port, refinery, smelter and power station.
Overall the town and surrounding area will be stable and shouldn't depreciate so the question is will this property make money? I wanted to get some people to cast there eyes over my numbers and possibly provide some advice on some metrics they look at when determining an area to invest.
So the asking price for the 4plex is $650k and current rents are 3x$260 and 1x$290 (market rent would be around $260-$280 currently). The overall condition is good and there would be very little money spent on repairs. Rates i estimated at $4k per year. Vacancy I need to check with real estate agent but is 8% (at least in my town). Property management is approx 10% of rental income. Insurance for a duplex in my town is approx $1600 per year. I set aside $2k for annual maintenance but think it would be less than this.
One thing that is a blessing and a curse at the moment is the interest rates at the moment are great approx 5%.
If anyone wanted to check out the property I'm happy to share as it is listed for sale publicly (not sure if it breaks forum rules is all).
When I run it through my own calculator taking into account principle paydown it doesn't really cashflow well but will pay itself off and will much money (as long as it doesn't depreciate).
Anyone have any thoughts or advice for me?
I wish Australia wasn't such an inflated market. Maybe just wait for the bubble to bust? haha
I think the Aussie market is too expensive.
You will find much better value in the US.
Just make sure to surround yourself with the right people so you don't become another horror story like may other Aussies did.
Thanks and have a great day.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing