Hi Michael.

This is great commentary, many thanks.  I agree with being in the correct areas.  i noted some rather cheap properties and I suspected they wold eb in teh wrong areas.  Questions for you if I may : – Are there a lot of company rentals ?  What do you think is the potential for the next 20 years, with the infrastructure going into Mining I can't see a downturn – or am I wrong !  Singleton seesm to be cheaper, but a good growth rate from a lower outlay is still growth, I am thinking after the first IPO, we may do another quite quicky.

Would appreciate your comments.

many thanks
David

I have been investing up in the Hunter since 2003 (mainly Singleton) – I think you have selected 2 great towns but may be a little late with your arrival as prices have gone up over the last 8 years but there still seems to be some room for a bit more of an increase especially if rents continue to climb like they have in the last 3 to 4 months. With regard to your strategy you have to be aware of the areas to avoid in both towns are there are some parts that are considered a bit rough/undesirable and will limit the opportunity for company rental. Furnishing will increase your rental yield but will also limit your potential tenants. You sound as though you are doing some homework I would suggest you take a drive up there and spend a day looking around speaking to the locals – I have always found that informative.

Cheers