I’m quite new to this and still getting my head around it all.
I just wanted to get peoples views on purchasing IP’s in regional areas, central west for instance. I have read different theories and reasons why they don’t make good investments but I personally know people who have done quite well. Any comments / guidance would be greatly appreciated.
Cheers…
This topic was modified 9 years, 8 months ago by Fegger.
Regionals are usually good for cash flow and capital growth is usually the sacrifice. There are some exceptions to that rule but not many.
I started out my IP journey with 2 regional cheapies that served me well as a stepping stone. Purchased, did a basic cosmetic reno on both and rented out both for 8% and 10.5% return straight off the bat. Was also able to draw on manufactured equity to leverage next purchases.
At this stage of the cycle i would certainly look at regional centres in NSW. things are beginning to move again after many years in regional NSW. Anywhere that has good infrastructure and planned infrastructure is good. There are good returns to be had in places like Inverell, Grafton etc. As stated previously you trade some capital growth for return however if you buy now, i believe that these centres will experience some growth in the next twelve months as a flow on from Sydney, Central coast, Newcastle etc.
Viewing 4 posts - 1 through 4 (of 4 total)
You must be logged in to reply to this topic. If you don't have an account, you can register here.