Please please think about this!
How many forumites commute 30+ minutes a day each way?
Most of Sydney does!
Take a rural town, no take the largest inland city in NSW – Wagga Wagga – University, RAAF base, Army base etc. etc. There are a number of smaller towns within 30 minutes drive from Wagga that are quickly becoming dormitory “suburbs”. This is also happening in other inland towns like Bathurst, Dubbo, Orange etc.
Please don’t be put off by the raw population numbers. There are good deals a few minutes out of town!
A good three bedroom house with ensuite and garage can be built for 130k, brand spanking new and with all that up front “depreciation” stuff. The land can be bought for under 12k a block in most areas a few minutes out of the city
Think laterally – build brand spanking new ones. The renters will flock towards new rather than old!
Food for thought!
Comments please!
I AGREE!!!!! [
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We used to live in Geurie which as I have said before is a tiny village located between Dubbo and Wellington when we purchased ($95000) to rent there for a decent house was about $200 -$250 and when we left prices had jumped to $130,000.
The prices have increased and so has the rent side it is convenient place to live especially when you were like us and one person worked in town and the other in the other town.
I think people discount those small towns too quickly when we purchased in QLD we went to a small town again and already the prices have increased and I am telling you none of these villages come within cooee of the population above 10,000.
Seek and ye shall find!Bronwen
If the good die young then I will live forever
Obviously there are no hard and fast rules about having a population >10,000. If can buy these properties are particularly low prices and all, then get a good yeild then why not? Though might be a little harder to finance.
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Jeremy Lunn
MelbourneSome lenders will not lend above 80% in towns with less than 10 000 population size. This is a LMI issue.
There are mainstream lenders who will go up to 90% and offer you normal loan rates to do so.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I would agree with the comments so far – that +ve cashplow opportunities may be missed if you ignore towns < 10,000 in size.
I think the main issues to address with towns below 10,000 (besides the mortgage ones which I’m sure a competent mortgage broker can resolve, hey guys…) would be:
1. Vacancy rates
2. Property management &
3. MaintenanceBy speaking with local property managers & trades people you should be able to get answers to these 3 questions.
Just remember isolation could add travel costs & delays to points 2 & 3.
Anyway its just common sense. Do your due diligence & you can’t go wrong.
But hey, I’m just starting PI so maybe so more experienced PI’s could let us know if I’m on the right track, and whether I’ve missed something.
Cheers,
David Paxton
“You Only Live Twice”In the town I am thinking about, Junee, near Wagga there are two banks with full branches in town, the Elephant and the ANZ.
They are very keen to lend money for property in town at the sale price on an 80% LVR. This also applies to investment propertys so finance should not be an issue
Hey xyzzy.
It’s nice to see some other poeple think the same as I do.
I live in one of those small towns near Wagga Wagga, I moved hear 13 years ago & the small farm I bought has increased in value by $300,000.00 + over that time. My bussiness in the same town has grown by 500% since 1997. There is no vacant rental homes & the town has shown steady growth over the past 13 years.
Be advised that rural N.S.W. is doing very well even with the drought.
Yes there are some down sides to being in a small town, but if I for one had of stayed planted in Sydney I would not had the opartunities that have come my way out here.
craigc” If you don’t go you will never know “
Hey xyzzy.
I’m not shore if you know much about Junee. It does have some problems that the agents & banks will not tell you.
If you like e-mail me and I’ll give you some insight.
cheers
craigc
[email protected]Isn’t there a private prison out there? Or am I confusing it with another NSW town?
Peter
Yeh there is a private prison out there.
craigc
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