Wednesday, April 04, 2007

Get Outa Your Comfort Zone

I live in the biggest city in my country and the average price for a house is now $500 000. Average rent is about $400. So the average return is around 4%!!! This covers the insurance, rates and maitenance and the rental manager's fees with a few thousand left over to cover the $40 000 morgage repayments. Unless you have deep pockets this investment just ain't gonna cut it even with all the tax benefits that you would get. So when it comes to getting outa your comfort zone that can include getting outa your town and looking for bargains somewhere else. Other towns need to have a decent sized population, say 30 000 up, or be very close to a major town, and have several decent sized employers rather than being a one industry town which will suffer if that particular industry goes through a down-turn. It also helps if you put a minimum return of say 10% from your rents. With these few rules you could find some thing decent but the big problem is to manage from a long distance. This is where you need to employ some good people skills and find some good people in the town you are interested in. Not an easy proposition. Do you have any ideas about this? Some experience in dealing with far away property investments? Blog in and share your stories. And remember if you have family or friends who are interested in property investing refer them to www.realestaterealinfo.com

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