what’s the smallest population…

40,000 minimum, richmond- unless it was somewhere like berry, nsw- those kind of touristy, old money places can’t be beaten- but too exxy to buy into :o(

Presumably the population figures are for those towns in isolation from cities- not for bourgeois stand alone places (in victoria, for example- i’m thinking Lorne and Daylesford- small places – not much popn- but very desirable).

kay henry

If it was coastal and not too remote I would consider anything.

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Anubis, I disagree strongly, I can name 10 smallish towns around here that unless you can find a place privately ‘you have got a snow flakes chance in hell’ of finding something to rent. Its cut throat allright to GET something to rent!

In my city (50000) there is always around a hundred vacancies advertised every week, and the prices to buy ‘anything’ are nothing short of ridiculus. (thanks largely due to large investors) WHY would you bother?

BC

I bought in loch-sport, it has 1000 people and i make a positive cash flow on a holiday house i built up there. So i believe its about the oppotunities that present themselves when investings. There really isnt any set rules, or guidlines you should go buy, but look at the facts and information, then you may choose a sound investment.

hi all

i am happy buying in smaller places about 5000 usually the smallest, rents have been very strong for years. there is a lot of misinformation about smaller towns. The ones i have invested in, in Vic and SA have very low vacancy rates. Often in smaller towns you get a far better quality of tenant as the property managers know who not to rent to. the idea that there is no capital growth in smaller towns has lost all validity over the past few years also.
so i’d look for bargains in smaller towns and cities, you get lower entry price, higher tental yeilds and better tenants.
Also look for areas that are having a lot of development. I’ll give you an example of what has been very good for me over the past 18 months, Hamilton Vic has the huge mineral sands project at its door step and Millicent SA has multiple inductries (including wind farms).
Last July i invested in Waimate in NZ a town of only 2500 people. i invested there because of a Project nearby to build a huge $1.2 billion hydro scheme. the property i bought for 40k is now worth 65k (62% capital growth in 7 months) not to mention the handy rent of 120pw.
So don’t dismiss smaller places there are some real gems out there.

regards westan

I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

Council Plans often discuss that kind of thing. I often look up the Council site and check out what is being planned for the city in terms of infrastructure etc.

Local community/neighbourhood newspapers are also a good source and some of them are even online!

kay henry

Though not very scientific, I can think of a few:

1. Check rental lists and see how long the same properties remain on there

2. Talk to property managers about the type of properties most in demand

3. Walk around suburbs known to have large numbers of rental houses and count the number that are vacant

4. Contact local council, welfare or regional development commission (these bodies would know if housing shortages are an issue)

5. Scan the local papers for tell-tale phrases like ‘housing crisis’ or ‘shortage of affordable rental housing in the area’, etc.

6. Sit in a REA office on Saturday morning and see how many people come in looking for houses to rent

There are heaps of stats for city areas but for country areas you need to do your own investigations as per above. These will not yield precise figures, but enough anecdotal evidence that things are tight might be good enough to make a decision.

‘Perfect’ markets with everything priced at the right value are only possible if all participants have access to information.

Where that information is unavailable or incomplete, the likelihood of market imperfection is higher. This can mean houses selling above or below their true value.

But if you have armed yourself with research & knowledge as Westan and others have done, imperfect markets can be the most profitable of all!

Regards, Peter

hi all

pisces, i’d like to add to Kay’s comments about fining out what is happening. another great way is talk to the locals. It amazes me what people know but can’t see the opportunities right in front of them. I’ve even gone in to local governments and spoken with the areas development officer. i’ve found these guys to be right up to the minute with what might happen in the future. they have an incredible amount of information and are often more than happy to share it.

regards westan

I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

Many many local papers are online. Just type the name of the town into google.com. I read regional/country town newspapers online all the time, if I am interested in an area.

Also, local real estates often have a “media releases” link attached to their sites. They are worthwhile to check out too, even if a little biased :o)

Basically, you can find anything under the sun on the net. Most local newspaper moguls are bought up by Conrad Black etc these days, and pretty much the world has caught up with the importance of having everything online. The world’s newspapers are on here. Last night, i was reading the local Geraldton newspaper online. It’s not that hard to find these things.

kay henry