HI EVERYONE,
I HAVE BEEN RESEARCHING RESIDENTIAL PROERTIES FOR INVESTMENT IN REGIONAL TOWNS.WHILE PRICES CAN BE MUCH LOWER THAN CAPITAL CITIES,RENTS RETURNS CAN BE QUITE GOOD.
DOES ANYBODY KNOW OF ANY RESEARCH MATERIAL RELATING TO COUNTRY PROPERTIES. OR HAVE ANY ADVICE.
REGARDS
JOFFhi joff
i specialize in regional cities/ towns aim for places over 5,000. i keep my ear to the ground and select areas that have some good economic prospects in the future. Last year i bought into Hamilton Vic pop 10000, prices have been really depressed over the past decade and pop declining. But hamilton is expecting to benifit from a Huge Mineral sand development by Iluka resources, the secondary plant in hamilton will employ about 100 new full time jobs, also RMIT University have established a nursing course at Hamilton, once again bringing in new people, with the return of value to wool i thought Hamilton would benifit so i bought 3 properties last year for 32k, 40k and 42K i did a bit of work new carpet etc. they are now worth about 75-85K. but that is in the past now we need to work out where is the next area to boom. will Hamilton continue to who knows, the iluka plant hasn’t even started to be built. i really don’t know where the next good propect is- anyone out there know some good stories around our great aussie towns?
regards
westanHI WESTAN,
THANKS FOR THE REPLY. I HAVE LOCATED SOME UP TO DATE STATISTICS WHICH POINT TO SOME VERY LOW VACANCY RATES IN SOME REGIONAL AREAS.ALSO WITH THE EXPLOSION OF PRICES IN COASTAL TOWNS,NEAR BY INLAND TOWNS ARE PICKING UP SOME OF THE BUISNESS.
REGARDS
JOFFJoff
where is this data available from ?
i know in talking to agents that rental demand is still very strong and supply is short.regards westan
joff
some info regarding median prices is available in the property investor magazine, as with a lot of figures it is always a bit out of date but helpful anyway. by the way what state are you looking at?
westan
WESTAN,
THE STATS I WAS TALKING ABOUT CAME FROM THE REIV HERE IN VICTORIA.PROBALLY THE SAME STUFF THAT IS IN THE MAGAZINES.
QUESTION FOR YOU, HAVE YOU HAD LOCAL AGENTS MANAGE YOUR PROPERTIES?IF SO,HOW HAS IT BEEN.HAS MAINTENENCE AND REPAIRS BEEN DONE PROPERLY?DO YOU HAVE ANY THOUGHTS ON WHAT WHAT SORT OF PROPERTY IS POPULAR AS A RENTAL IN RURAL AREAS?
REGARDS
JOFFHi joff
answer to those questions
HAVE YOU HAD LOCAL AGENTS MANAGE YOUR PROPERTIES?
Yes i do have local agents manage all but one property(this is rented to someone i know). i have managed properties in the past but it is too time consuming now, i’d rather look for my next deal than chase money etc.IF SO,HOW HAS IT BEEN.HAS MAINTENENCE AND REPAIRS BEEN DONE PROPERLY?
i,ve been into property investing for 6 yrs and haven’t really had a problem with repairs not done propertly (only bad jobs ones are the ones i have done). but have had some useless agents and some good ones. i find now that i have to spend time keeping an eye on the agents making sure they are on the ball.DO YOU HAVE ANY THOUGHTS ON WHAT WHAT SORT OF PROPERTY IS POPULAR AS A RENTAL IN RURAL AREAS?
My market is the lower end. i,m happy to buy ex ministry houses. i always present them very well so they rent out quickly. I find, for example, where i live you can buy an IP for 120k and get 150pw or buy an ex min home for 55k and get 120pw, its cheaper to buy two properties. Ex min homes are low maintenance. i try to avoid the worst street in the town, every town has one, often they aren’t that bad but it is all relative and some streets have a stigma.some question for you
what areas are you looking at i may be able to help with some info for you.regards
westanInvestor, it’s called the Caps Lock. [
]ah!thats’s what the caps lock is.sorry about that.
Westan,
you are right about ex ministry houses.we brought one in south frankston 2 years ago for 117k and it is now worth around 210 – 220k. the only downside is that our rental return is still 170pw the same ae when we bought.but we are happy to leave it that to keep our very good tenant,given the capital gains we have made.
we are now looking for only cash flow positive properties.we thought somewhere 60k-80k returning around 120pw.so far we have looked at far east gippsland around lakes entrance/orbost and western districts particularly the horsham area.thanks for your advice.it is really great to talk to somebody about this instead of boring our friends with it.
joff[8D]Hi Joff
Can’t tell you much about east Gippsland.
But i can help with around the West of the State (i live in Stawell 120km past Ballarat, as i have advertised in a previuos post). Anyway I have purchased 2 properties in Horsham this year one for 74k will rent for 155pw Thats not a bad return. another for 65k rent currently at 120pw, when the tenant moves out i will paint, carpet, carport and get 155pw also. i try to avoid smaller towns under 5,000 population but my brother bought in Murtoa 30km from Horsham (pop 1500) he paid 27k and has a tenant paying 100pw not bad either (i found this deal for him, should have kept it myself) where i live in Stawell one of the major employers has just announced (on Friday)they are expainding and could create 100 jobs? this must help our property market which is already moving up.
i keep a doc. on a few towns and what economic developments are happening, if anyone want a copy email me, or if you have some info to add also email me at [email protected]
Joff call in to see me at Stawell if you are going through to Horsham
regards
westan
i also love this stuffWestan,
I was in stawell last year for a night and thought it really nice place.You can always tell how country towns are doing by walking down the main street and looking for new cars, vacant shops and the condition of the gardens especially those maintained by council.Stawell reminded me of colac, everything was spic and span and looked prosperous.
Do you have any thoughts on the Portland area?
It seems to fit the profile of what we are talking about with the added bonus of being coastal,which believe me is all the rage here in melbourne.
regards
joff [8D]Joff
Portland interesting you mention this
i’m a bit dissappointed to talk about this. A mate and i did some real good work looking into Portland. I even spent an hour with the cities development officer getting all the up to day news. then when it came to negotiate a deal i stuffed up. a property was on the market for 45k i offered 39 and wouldn’t move hoping the seller to sell down to me anyway he accepted another offer of 41, 12 months later this home is worth 80k.
Anyway why i liked Portland hasn’t changed
Wind farm project $100 million. Given go ahead
Posible Components factory up to 1000 jobs with Capel Prince.
Potential $1 billion paper factory to be built between Portland and Heywood 1000 jobs (10 years away).
Increasing use of the Port largely due to mineral sands project of Iluka resources around Douglas Vic.
Possible rutile (mineral Sands)processing plant (could be at Hamilton?)
possible Expantion of smelter 25% increase in size.
Also tourism is increasing to this area
so the economic future looks bright a lot of jobs in the future meaning increasing population and rising renta and property prices.
regards westanWestan,
Did some serious homework over the weekend and as you say Portland is looking good.
Questions for you:
generally speaking, what is the maximum distance out of town (Portland or Horsham for eg.) you would consider buying.? do small acerages with house rent well? Do they attract better rent?
thanks for all your help.Joff [8D]
hi joff
sorry i don’t really know, i’ve never looked into it. i’ve always stayed within the town boundries. off the top of my head i thing that out of town properties take longer to rent and rent is lower? you had best check this with local rental managers. Also if it is not zoned residential you may have some difficulties with finance, they may ask for more equity than if it was zoned residential. So my feeling is out of town may be good lifestyle but not so good investment. The maintenance could be higher and i wouldn’t be too keen on mowing the lawns if the property was vacant?
I’ve got a friend who wants to sell him property in Portland after 80k in Correa Crt, rented for 120pw but could get more. i tell him to hold but he is a trader of shares and can’t get it out of his system. if interested can get phone no’s etc and photo’s
regards westanWestan,
thanks for the reply. your points about locations pretty well match what the local agents are telling me.I am very interested in the correa crt house.it is advertised on the net.more info can be sent to [email protected].
Joff
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