We all talk about what is required in a town for it to be a good prospect for property investment. Things like government infrastructure, franchises moving in, destination tourist facilities and the like. Steve has given us the “Ballarat” example, so lets get together and make up the top ten hotspots in Victoria for buying our “positive cashflow property” and our reasons for the selections.
I’ll start by nominating “Warragul”. The area is one of the fastest growing in Victoria. Lots of franchises established. Good government involvment in schools and colleges. Lots of facilities for retired persons, RSL club, bowls, golf, etc.The Eastern corridor through Packenham and Drouin is one of the fastest growing in Australia. There is a bypass freeway scheduled to be built in the next few years, which will make the trip into Melbourne exceptionally quick. There are still properties that offer positive cashflow potential.
Country rents have never been higher.
Look forward to your choices!
Cheers,
CanuckCool recommendation Canuk.
Much appreciated.
Adonis
Hi,
We have done well out of Nambour in Qld as it seems to be a region that is experiencing good growth.
I understand there is a multi-million dollar refurbishment of the shopping centre in town that is helping the local economy mushroom.
And then there’s the Big Pineapple just up the road that’s sure to pack ’em in [
]Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for the reply Steve. Queensland is a bit far away for me at this point. Like you said you have to be able to get in the car and go have a look! Get to know the area. I have done this with close to a dozen areas in Victoria now and done the research on the criteria required. Some have come up to the mark and others, which I originally though were good, have not! Once you find out vacancy rates and expected rental returns and do the sums, it’s not brain surgery to work out if the area is going to be “cashflow positive” for you. It can be hard to find the right property, but they are out there!!
I find if I take the annual(gross) rental return, allow for two weeks vacancy and a further 25% for all outgoings, this gives me my net income. Then comparing this to the annual interest(ie 6.5%),you either have positive or negative net return. I know lots of people who don’t take vacancy or ongoing costs into consideration when doing the calculations. Lots of real estate agents don’t and advertise a high return on your investment. Good way to get into trouble! I have found if the property is cashflow positive after these considerations, the actual net return is higher as the 25% deduction is more like 12-15% in real terms. but better to be safe than sorry!
Anyway, good luck to all of us!!Cheers,
CanuckI am new to the idea of postive cashflow investing and think your idea of listing the top 10 rural Victorian towns is a fantastic idea. It is amazingly helpful to be given areas to start looking. At present I am doing some research just West of Melbourne and am finding positive cashflow housing a little difficult to find. Any other areas you suggest?
thanks again…Steve,
Just wondering what property price range you are wrapping in Nambour?
We have had 30% capital growth in 6 months on our properties in Logan, but it seems they are similar
in price or cheaper than Nambour.Would you suggest considering wraps there.
Regards,
IBI have had found Bairnsdale, and surrounding municipalities good areas. I must admit that I am quite new to this though, have you looked in this area. It also seems to be experiencing some growth… Can you suggest any other areas?
I would seriously consider Queensland.
The purchase contracts up there are
apparently designed to protect the buyer so
much more than in Vic, or some other states.Purchase is conditional on a building inspection which can take place when you are back in your home state.
What I look at is the long term prospects of a town. If I can buy a property in a small to medium size town and positively gear it from the start, I ask myself what’s the down side of this deal? Worst case scenerio could be a few percent in Capital Growth per year over the next ten years. If so, I still have someone paying the property off(Money in my pocket) and made money on the limited Capital Growth. However, if the town is showing signs of population growth, the Capital Growth will most likely average out at 7 or 8% over the next ten years. You tell me, wheres the down side? Like Steve has stated this works well when you have more properties. Don’t try to make a fortune on 2 or 3 properties. If you’ve factored in your maintenance and costs of holding the property, the risk is low and controlable.
Given this, have a look at Corowa, Rutherglen, Sale, Traralgon, Warragul, Drouin and Eaglehawk. Some are growing towns, others are growing destination areas. Look for Golf courses, RSL clubs, Medical facilities and freeway access to Melbourne.
Walking distance to shops, facilities and CBD’s is recommended.
Buy bigger blocks if possible for unit or subdivision development in years to come.Good luck to us all!
Cheers,
CanuckHi, anyone got any ideas about the top 10 towns in NSW?
Yass would have to be near the top….property is so sought after there. Orange and bathhurst also look really good. Which others can anyone think of?
In Victoria, don’t discount the future value of Warrnambool….the baby boomers will head there in droves in the years to come, giving Warrnambool and the towns along the south west coast a real boost.
Savanna100
Hey Savanna 100,
I agree that Warrnambool is a popular choice, but the prices there have jumped over the past 18 months. I’m sure there’s still room to move, but finding a positively geared property may be hard. Good luck to anyone looking in that area. Let us know if anyone does the deal!Don’t know the NSW market except for Moama and Corowa. Both have good little weatherboards on decent blocks near facilities that come up from time to time. Good rents in area.
Good luck to us all!Canuck
Gladstone, Queensland. The Gladstone region is experiencing great growth. The population here is expected to explode from 40,000 to 60,000 by July 2004. This growth is being fueled by several major industrial projects. Currently under construction is Comalco’s $5.6 billion Alumina Refinery. Due to start construction shortly, the Aldoga Aluminium Smelter is a $3.8 billion project. There are several other projects proposed for the region and to find out more, take a look at this site (it is a long one) :
http://www.sd.qld.gov.au/dsdweb/htdocs/global/content.cfm?id=10182
House prices here have already jumped considerably, but are expected to keep climbing. Investing here you will find great capital gains and great yeild. 10% returns are not uncommon. Here is another site:
http://tours.surroundpix.com.au/?agent_id=186
Callan Christie,Professionals,Gladstone.Hi there,
Great posting for people unsure where to start looking or for those who think finding a wrap house is too difficult.
Keep up the good postsSooshie [
]There are no problems, only solutions!
A word of warning about Gladstone. The prolonged drought has resulted in limited water being available for industrial use. Many of the future projects are being put on hold, such as the new smelter, until conditions improve. Don’t get me wrong, there is still a huge amount of work going on up there but some projects have been downsized or put on hold indefinately.
“TOP TEN”
1. Warragul(including Drouin)
2. Shepparton
3. Traralgon
4. Lakes Entrance
5. Echuca
6. Healesville
7. Ballarat
8. Mansfield
9. Daylesford
10.BendigeBased on population growth(Growth corridors), Proximity to Melbourne and existing or proposed freeways, Lifestyle changes for Baby Boomers(over next 20 years),destination or tourist towns, Rental occupancy rates and high rental $$ yields, Facilities and government infrastructure.
Within all these the property should be close to shops, schools an in general CBD of the town. House should be in reasonable condition on a big block if possible. “They ain’t making any more Land”. These sort of properties can be hard to find, but when you do find one it’ll be worth it. Like they say, if it was easy everyone would be doing it!
Cheers
CanuckFor tables showing rental yields for houses and units for every town and suburb in Australia, get a copy of the current (Dec02/Jan03) edition of “Australian Property Investor” magazine. This will at least point you in the direction of where the high yields are. The figures are from Residex, so they’re well founded.
Hello to you all,
I just came across this great forum and would be very gratefull on some advise. My husband Chris and I are moving to QLD in Sept 03. We have bought a van and intend to research the best places to invest by renovating and building a property portfolio.. Any suggestions on where to start ( best capital growth areas)..As we are going to be mobile nowhere in the sunny state is a problem.
Regards
Kate[8D][8D]Hi,
Can anyone suggest some good country towns in South Australia for investing?Thanking you
Ms Elvis[
]eh, how come when i go do a search on Lakes Entrance, i can only find very exp4ensive houses? $100-$200+ !
dont look positive cash flow t o me!hi fullout
that’s right most regional towns have very limited stock of properties for sale, it is getting harder and harder to buy cash positive. Properties at the lower end are selling before listing.
westan
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