Hey everyone, thanks for the input, but we tend to have moved off the topic a bit! My original question was something along the lines of what do you all think of growth & prospects for country towns? Also, for the Victorians amongst the crowd (& those who have invested/are investing in country Vic) where do you predict will be good for future growth? I would ideally like a few +CF properties with above average capital growth for the area (just to start with), then move back towards the Melbourne suburban area once my equity builds up in the country/regional properties. Hmmm… long sentence huh?! lol, I never was too good with English in school! Replies much appreciated!
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Originally posted by Risky:I think country areas is the ideal opputunities for new investers to feel the waters without getting to burnt.
What will happen if the property stay vacant for month after month? I think this’s also the downside. New investors might just jump in to buy regional properties without doing complete due diligence will also get burnt badly. And therefore, fear wil kick in and not there to invest anymore in the future.
Back to your (H.C.) original question, I think researching the area that you want to invest is vital. One must know the risk and return in the areas that they want to invest.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]“What will happen if the property stay vacant for month after month? I think this’s also the downside. New investors might just jump in to buy regional properties without doing complete due diligence “
Indeed, I keep forgetting that although I am all for investing in smaller towns as they offer spectacular yields, low entry prices, you need to check out the rental demand before you buy, for the kind of place you are buying, for the *actual* place you are thinking of buying. You need strong rental demand for it to work. In the places I’m investing and bird-dogging, there are high yields, good properties for cheap $$$, and high rental demand. You need all three factors. one rental agents has 70 people on the waiting list for rental properties and zero for rent. the other rental agent in the town tells a similar story.
I have never ever heard of properties sitting vacant for months and months *in towns with rental demand* unless they are total dumps with major problems, such as are majorly in need of maintenance and a clean-up.
They can still be great deals to buy provided you fix them up though and turn them into a desirable rental property.Originally posted by Risky:I think country areas is the ideal opputunities for new investers to feel the waters without getting to burnt.
What will happen if the property stay vacant for month after month? I think this’s also the downside. New investors might just jump in to buy regional properties without doing complete due diligence will also get burnt badly. And therefore, fear wil kick in and not there to invest anymore in the future
Ive got to learn this quote thing [angry2]
Yes Chans your perfectly correct , you could be burnt if you jumped in and bought a ip for under 100k with no due dilegence in a regional area but my point is it would be a little bit more painless than the same invester doing the same thing in the city for 300k. [mario]If you want the rainbow youve got to put up with the rain!
Country predictions… Country growth… the real topic for this thread?! Can we try to stick to the point please! I really need other opinions on this! LOL! Thanks
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Originally posted by Risky:Yes Chans your perfectly correct , you could be burnt if you jumped in and bought a ip for under 100k with no due dilegence in a regional area but my point is it would be a little bit more painless than the same invester doing the same thing in the city for 300k. [mario]
What about the same investor don’t buy in country areas as well as in the city, but looking for quality investment property say 20 to 40 km away from the city? I am sure it will grow in the future and I will never invest in the ciy anyway.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]speed up the process with cg.
u cant achieve this with most rural towns.
capital gain works harder for u than small profits from rentals.
find the needle in the hay stack
rural with future growth.
gereldton thats my answer for us in w.a.Holden Commadore, not sure how ive been reading these posts but i thought they have all been about investing in the country and whether investers are there for capital growth or cashflow which i thought was the topic? but then again it is hard to put all your thoughts down in a post and sometimes it doesnt come across like how its meant to . [jerry]
Chans i agree with you again [cigar]
Regards Risky (Ford man)[thumbsupanim]
If you want the rainbow youve got to put up with the rain!
Originally posted by holdencommodore:Country predictions… Country growth… the real topic for this thread?! Can we try to stick to the point please! I really need other opinions on this! LOL! Thanks
country towns that provide both +ve cashflow and growth are worth while deals, but how much growth/capital gain… are we looking at?
…just enough to get our stamp duty and legal cost back, or growth that will always be 1% higher than inflation…?
Cheers,
sisSIS, with predictions of C.G, what sort of things should I be looking for? Growth within the last 3 years or so, and probable future growth through reading Council minutes, predictions etc? What other resources should I be looking at? Also, personally I would be looking for something with +CF (or neutrally geared if its a good property… Im willing to sacrifice that relatively small amount) with CG in like with a few % above inflation. By the way, while Im on the topic, I really need graphs of real property prices for Melb if anyone knows where I could get them, that would be great! Thanks for the reply SIS.
Risky, like Ive said before, Im really not that great at expressing what I feel about certain things (aka. property inesting questions! lol), so my apologies for that, but thank-you too for your continued response.
Great to have such a great resource in all these knowledgable members!
Thanks!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Yeah Geraldton is ok.It doesnt just support farming areas in the region .It is a huge crayfishing port iron ore port mineral sand port live export port and they have just spent millions upgrading the port Thats just the beginning.Why you people insist on downgrading regional W.A I just dont understand.Then theres tourism Etc.etc.And you all talk about growth.Statistics dont mean a thing.Spend some time in these areas and then you might get to know what they are about,sorry to get off the thread but I get a bit defensive about my area.[angry2][angry2]
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Originally posted by holdencommodore:what sort of things should I be looking for?
look for things like:
growth
government and council improvements
population
property prices trends
future job aspects
developments
local knowledge… just small things, but things that happen normally before a suburb begins to go up in price and value…
other times its just gut feeling…
Cheers,
sisholdencommodore,
Buy API magazine and it does show graphs of areas and capital growth, but really, you’ve been given a lot of ideas on here- now ya have to find out the stuff yerself
)Russ said:
“And you all talk about growth.Statistics dont mean a thing.Spend some time in these areas and then you might get to know what they are about”
Russ… Statistics DO mean a thing. I have got all excited about areas, and then looked up some data and found the area was the fastest declining area in Australia. Industry data, employment data, population data, flood data- sheesh! How could these not mean a thing? We all learn differently. Some people are comfrotable with looking at an area. I learn by *reading* about an area. It’s part of my oswn due diligence. I think as a spotter, you’d also be encouraging your buyers to find out everything they possibly can about an area, too, yes?
kay henry
Thanks for the tips SIS, and Kay, Ill be buying API asap! I read about it on a different post, and it seems very common & useful to many investors. Is it usually available from most newsagencies? Or should I just subscribe (dont have a credit card, so subscribing to things like that is just a real pain!)
Thanks for the advice though everyone(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
I think you can get to carried away with statistics.Cyclones,floods,heat cold,remoteness.There are a lot of factors to look at with everything.But you know. people still choose to live in some of the darndest places.They live on the beach front and there houses corrode they get windswept but they still love it.Others choose the heat of the desert.Why? Because we are all different.You are not buying a house for you to live in. You are buying it for your tenant to live in and these tenants choose to live in the darndest of places.But by all means if thats the weay you want to go then so be it for you. Just remember figures dont tell you everything.Look at the median house price for examplew.It may be up in one quarter because people chose to buy exp. proprty next it might be down cause people bought cheaper property .Statistics[baaa]
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Russ, I understand what you’re saying, but Im trying to figure out a mixture of things… what type of tenant will I attract if I buy in a town with extreme conditions as those you mentioned? Either one that likes that kinda environment, or one thats likely to leave. I dont know if that really made sence, but I want to setup some kind of system as a screening process for my future investments, because – as your signature indicates – there are a fair few +veCF properties, but most of them probably end up +veCF for a reason… I just like statistics to be able to back-up my opinion on a town thats all. Thanks for the advice though!
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Hi H.C I dont mean to tread on toes with what I say.Its just that some people regard statistics as the be all and end all.Think about what statistics tell you.They generally show what the average is.Some people will say dont buy there because of such and such.But one part of town doesnt mean all of a town.Dont disregard any area till you know what is happening all over the area. Do the walk do the talk.I know W.A I dont have to look at statistics..There are a lot of areas that are no good but there are heaps of places that are good.Keep posting my friend cause You are learning from a wide variety of people.Russ.
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Thanks again Russ, your comments are helpful. Like you said, you know your area through experience, which is what I also believe is necessary in the area of an investor’s choice… But seeing as though I dont have that yet, Im a bit aprehensive as to what kinds of areas I should be looking at. Having always been good at maths at school etc, I just naturally (<– doesnt look right! :S ) look for the hard evidence of mathematical proof. It is true what you say though, at least I know this from experience, that there are vastly different pockets and areas within the one town. Also, someone’s signature is ‘averages represent everybody & no-one,’ which is also something you basically mentioned.
Thanks again Russ.(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Well i am only new to all this so new infact that i have only just recived my buyer beware pack. Since i started getting into this i have been looking at property all over the country and i am getting really frustrated with it, i have not found anything that even comes close to the mark
HAVE ALL THE POSITIVE GEARED PROPERTIES GONEChris
Hey Christine, & welcome to the site. I dont want to get off the topic of the country property scene here, but the way I see it, +ve gearing exists for a minority of deals. See, anything can be made to be +vely geared – just have a huge deposit & youll have a +vely geared property instead of -ve. Bad example, and extreme, but you get the idea. Im currently studying my estate agents licence in Vic & have found that by talking to agents & letting them know what you want (+vely geared properties), basically acting as a buyers agent, they are really helpful. If you simply scan through the ads in the local paper or office windows, you wont find as many +vely geared properties as if you let the agents know you’re keen & ready to buy. The internet’s also a great resource, but agents still have to advertise & pay to have the ads online, so you may find that this pushes up the asking price by a few $100 – $1000’s because the vendor then has to pay for advertising expenses etc. Talk to agents, try to get onto the properties before they’re properly advertised etc.
Worth a try anyway!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
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