Im looking at buying an investment property and need some advice?

Question

I'm looking at buying a particular property as an investment.
It has a decent gross rental return (6%) but has been on the market for 6 months and has not risen in value over the last 5 yrs (as stated by the real estate agent). It is close to the town centre of a growing town, and has a very steep driveway. It is 10 years old. I intend to get a soil inspection to ensure the ground is ok, as the house is on a high. Should I make an offer, say 5% less than the asking price? Why wouldnt the property increase in value when all other properties in the area have?

The asking price is 235,000, rental income is 270 a week. The current tenants have been in there for 5 years and are happy to stay longer. It is through a commercial realtor. I probably wont use a property manager as it is low maintenance and there are existing tenants. It is a quiet street, which isn’t far walk from town centre. I will get a building inspection

Answer 1

the good thing about doing this is you get to make money w/o paying taxes...legally! every year you will depreciate this property as much as allowed, then when you run out of depreciation...find somebody who has a similar property and simply swap titles! start depreciating all over again takeing care of the taxes on a annual basis! and...best part is that it is totally legal!!!