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Thanks Chris-Syd,
While you are at it, what is a IMHO & LVR?
Is there a posting somewhere, where I am supposed to have picked up on the shorthand?
I recommend looking at the Australian Bureau of Statistics site (http://www.abs.gov.au/). They can tell you a lot of what you are looking for, plus the latest cencus is due out any day now.
Placing the name of suberbs will often give you links to local council web sites also, these can be very insightful, as far as any new developments, plans and the direction of the area. As well as any probelms/issues that they are currently trying to address. These days local councils post drawing, plans and all sorts of information on their web sites for people to access, they also have contact numbers, so you can call them and enquire about rates etc for the area.
One of the much more experienced investors on this forum recommended looking for IP's within your own area, outwards. I like this notion also. I am from the NT and have purchased locally, then further out, to Darwin, and am now looking further out again to Palmerston…. which I highly recommend exploring. I was able to visit the areas cheaply and was more likely to hear from people ' on the ground' about what was happening about the place.
Plus, it is amazing some of the conversations you can have with people when you 'go'. Most people are stoked to tell their story and you can learn a lot from their expereince. Talk to locals, ask them if they own, why/why not, where they recommend buying, if they know the bloke/women selling etc. Very insightful.
All the best.I live in a mining town myself. Place is located in North East Arnhem Land, called Nhulunbuy – better known as Gove.
Known mostly as a bauxite mining town, remote area where the people earn big bucks. But if you dont work for the mine, you rent.
Rent costs no less than $650/week and more like $700- $800/week.
Extreme housing shortage. I have a house here I purchased for $300k and rent for $800/week. Also purchased a duplex with my cousins for $700k rents at $1350 a week.
So what's the hitch? Why isnt everyone buying? Leasehold land. No big deal to me, the mine signed up another 30 year lease and was just purchased by Rio Tinto. The mosre significant problem I see (for buyers) is that the Leasehold land means that most lenders require buyer has 30% of buy price (in other words, will only lend 70%). Not easy for new investors, but possibly no big deal (I would think) for those who already have equity… that's how I got mine. BOrrowed off a unit I had in Darwin.
Houses now sell for about $350-$400.
My parents bought 4 or 5 over the past 20 years for much less money and are laughing. People said they were crazy for risking their $$ in a mining town. They only have 2 left now. Purchased the first for $20k (20 years ago) and rents for $800/week. Nothing flash, only a donga. The other they purchsed for $120k and they rent for $750/week.
Hi Sunsetred,
Just a side note. You mentioned you are working in Blackwater. I purchsed an IP there about 5 months ago. Are your IP's from there also?
Was glad to read the mines are going strong there. Took the advise of a friend who had been researching the area for a while and bought quickly…. never been there nor do I plan to go there, so always glad to hear 'good stuff' about the place.
Cheers.
1st IP purchased for $300K 2 years ago. rented for $800/week, valued at $360K
2nd IP purched for $270K 5 months ago rents for $320/week, valued at $350K
3rd IP purchased for $220K 5 months ago – halfs with sister in law and rents for $400/week (doubt value has raised?).Shareholder in consortium (talked my family into investing 'safely'; we purchased a duplex for 700K, rents for $1380/ week
What is a PPOR? – sorry, new at this. My guess is own home? if so, we rent.
Enjoyed reading everyones story.Much like 'A New Man' mentioned in their post, we sold our first property, purchased a car… and got hit with CGT. Ahhh However we wanted to sell and needed the car, and the CGT was a good lesson. We had not researched this enough and should have looked into it more (in case this is relevant).
We researched sale prices in the area, advertised it in the local paper and sat tight. My attitude is that if the house is worth the market rate and I am in no rush to sell and buyers are around, then I can afford to wait for the right buyer to come along. We had many people contact us and organise inspections. LOTS called/enquired, some looked.
Much like myself, many of the people were looking for a bargain and didn't want to pay what we wanted for it. However, because we were not in a rush we could afford to wait, we did get a buyer (about a month of waiting) and the price we wanted.
Lastly, I thought that 'Crashy' had some good points but a little strong in the delivery (of advise). Important to note that this is your first Reno and new to the 'game'. Some excellent advise Crashy, but could be lost in the strong delivery – Just a thought.
Cheers and best of luck
