Hi guy’s,
Just was wondering if anyone had some comments about what sort of town population would be considered reasonable for IP in country towns?
As a new invester I found it diffucult to do research on areas not know to me. You either have to pay to services like residex or know someone who lives there. Often regional townships do not have very good web services either. In my searches though I have found the following info to be generally true and was wondering if anyone else had some of their own ideas they would like to share or would like to comment on mine.
My own theories:
In general I have noticed that if a town has it’s own Police Station or hospital then it supports a reasonable township. Also if there are permanant bank branches located in a particular town then that also gives you some idea as to the size of the population. (Banks don’t like to keep branches open unless assured of good attendance)
The number of public and private schools in the area are a great way to roughly detirmine the wealth in the area and the family make up. eg lots of families and kids.Any comments?
You will always miss 100% of the shots you don’t take!
hi ronulas
i have made it a rule not to buy in towns under 5000, but i think there can always be exceptions. for me if the numbers a good ie rental return, then i would look at rental demand some smaller towns you may get stuck with vacant properties during quieter times like winter when not as many people are moving. it is also important that there are local property managers, as you need them to look after your property, many smaller places don’t. i would also look at the towns future prospects. one day you may need to sell so towns that are moving forward will sell quicker. some banks will not give finance for smaller places also.
regards westanHi Ronulas,
I have made the same rule as Westan, we must like the number 5000. But as he says, there are exceptions to this rule.
I’m still at the stage that I can’t buy in a new town, without going there to get a feel of it. Some towns I’ve looked at with more than 5000, seem dull and old and dying. Some towns with less than 5000 seem fresh, vibrant, happening and worth investing in.
So I guess, if it feels right DO IT.[
]Del
Hi Ronulas,
Due dilligence, some small towns we have looked at are good rental towns. That is they support workers from nearby factories ie/ Strathmerton has Yoplait. This little town supports a good number of rentals, I don’t know what the population is but the rental vacancy is low.
There are a number of Victorian towns that have good factories nearby. But, be careful, there is a lot of moving going on at the moment. That is there has been a number of industries moving to new shires, check out Moama / Echuca.
I agree with Willandel, some small towns have a much better feel about them, just remember to be a local.
Regards GregMary & Greg Bridges
It’s better to give a little than to never give at all.[
]Hi Ronulas,
I am new to IP and have only done 2 deals, in both cases the Financer required the town population to be over or as close to 10,000 as possible. I believe even 5000 or so would be OK providing the township or neiboring towns have good employment figures and solid inforstructure.Hi again,
I forgot one important factor for you to consider. Towns with populations under about 5000 banks will have different criteria with lending.
So, before you sign on the dotted line, do your due diligence and check that with your lender.
See ya,[
]Del
Hi Ronulas,
From the research that i have been doing, I have learned that if large department stores or fast food companies operate within a town then they have done the due dillegence on the population numbers. These big companies put alot of effort into the research before committing to building in regional towns. You can get this information off the internet as the large companies have generic website e.g http://www.mcdonalds.com.au. most of them have a section on store locations.
Some other things to look for would be power stations, mining towns or universities…. Hospitals are definately a good indicator
Happy hunting [
]Becky
Invest in People for a Prosperous Future!
Hi Del
Got this quote off Bob Proctor’s web site today.
Thought you might like it……..
“Trust your hunches. They’re usually based on facts filed away just below the conscious level.”
Dr. Joyce Brothers
Psychologist and Television PersonalityTake care
Dave []Thanks for that Dave,
You’re right. That’s a great one..[
]I think I will write that one down!!
I really believe the saying “if it feels right – do it!!! So many people procrastinate and go grey worrying what is going to happen if I make a mistake and buy the wrong one etc….[
]
They spend their life researching, instead of taking part.Life is a wonderful journey. Try new things…
Take part in it – don’t watch it pass you by.[]Have a great day,
Del
]
]Hi Ronulas,
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]The topic ‘Good population for country Towns?’ is closed to new replies.
