Re: ur convo on country properties
i just found at 7 hours north of sydney one $60,000 for $120 PW return, only thing is 2000 people in town,thoughts…..
place low offer?
Hey, Im actually looking up the same thing, but in VIC… lol, seems like you & me are very similar! Umm, Ive been looking up the ABS stats – try this: http://www.ausstats.abs.gov.au/ausstats/2001maps.nsf/HomePages/AusStats+BCPs coz it lets you look at the demographics of towns etc, sorta get a feel for the area before you inspect (if you plan on actually going there – Ive read a lot of posts today about people having not ever seen some of their IP’s… Personally I dont think that’d sit too comfortably with me – I want to see what Im paying for!)
As for 7 hrs North of Sydney… Im from Melb so cant help you there… but is it in a coastal region? If not, the way I see it (being a small town etc), youd want a place that’s pretty much near the centre of the town, and through reading the ABS stats, you should be able to see the needs of the people in that town (eg. family home, farm land, 1 BR dwellings, mostly single people? etc etc)
Hope this helps, otherwise let me know, PM or email me
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Before putting in the offer, Ask yourself the following questions:
1. is the town worth investing?
2. infrastructure?
3. tenants, will they be there in the future?
4. will the towns still there in 5 to 10 years time?
5. what’s your due diligence tell you?
6. will the population will grow in the future, why?
7. is there any major industry in the area? if so why they still there in the future?
8. will there be opportunity for grow (town) in the future?
.
.
.Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Originally posted by Nathan_b:Re: ur convo on country properties
i just found at 7 hours north of sydney one $60,000 for $120 PW return, only thing is 2000 people in town,thoughts…..
place low offer?
Nathan
As Chan has said, just because you find a property that meets the 11 second solution don’t be sucked in by the notion that this must be what everyone is talking about and therefor buy it without thinking it through.
I could find 10’s of properties in Australia within half an hour on the net that meet the 11 second solution. Where the difference lies is what you do after this.
As Chan has alluded to there are many factors in considering purchasing property. You do not want a property in smalltown, NSW that has no prospects for potential tenants. The idea is to look for towns that will see growth in the future. It does not even need to be big growth, just enough to sustain it.
‘Eat rich food, barbeque a yuppie’ [greedy]
Statistics. Gut feeling.Who knows.We bought in a little town and it always looks dead yet the prices have more than double over the last couple of years.The houses are still being tenanted and I wish I had bought more.Just remember the house is only a vehicle for you to make money.If you find one with a long term tenant dont matter if you like the place or not .You are still making money from the place.look at the people with the biggest portfolios. they are mostly in regional areas.Lots of people like to live in these areas so think about it. Its all in the book.
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.
Russ,
It’s fine if you buy property base on gut feeling, but for me I will never do that.You gut feeling won’t tell you the full story but statistics will. If the statistics tell you not to buy then I would not touch it, but that’s me.
If you find one with a long term tenant dont matter if you like the place or not .You are still making money from the place.How long will the tenant stay? 3-5 years? is it been signed in the tenancy agreement? what will happen after that? can you find the new tenant in the area? if you that’s great.
This is just a thought and remember it is any guess.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Just thought I’d wade into this one. I’ve long been a reader but rarely a participant of this forum. We’re getting an increasing number of calls about Tax Depreciation Schedules from investors buying in small country towns, as well as some larger ones: Kalgoorlie, Broken Hill and Mt Isa to name a few. Cash Flow Positive is a mantra that’s leading people to some pretty remote places. Demand in those places from like-minded disciples is pushing the prices up. I worry occasionally about the type of properties these people are buying. Let’s put aside for a minute how the numbers may stack up i.e. rent vs purchase price. Somebody recently came to us after paying $70K for an IP in Mt Isa. Rent was around $140, so that’s okay. My concern was that the property was built in the 60s, constructed of concrete blocks with a tin roof, and sitting on a pretty cheap block of dirt – and I do mean dirt. The amount she paid was way, way above the replacement cost of the building + land. That sort of thing worries me a tad.
I totally agree. This is my main worry and thats the main reason I would not touch anything in remote or country areas.
In the future these people will be disillusioned and realise the effort/hassle is not worth the return.
And all these people expowsing ‘Sight unseen’ is ok if the figures add up. Not in my view.
Good to hear from a property professional in the field.
I think people are only looking at the cash flow figures and not the assets fundamental value. If you look at the fundamental value of an asset, you can see why people are prepared to contribute to the ownership of a property eg. ve-.
Originally posted by yack:
And all these people expousing ‘Sight unseen’ is ok if the figures add up. Not in my view.Even the most blase of commentary I’ve seen on this forum has said that “sight unseen” may be fine IF other forms of research are complimentary.
Numbers stacking up is but a part of this supporting information.
I didn’t say avoid country areas. You put it more succintly than I did, Yacka, when you said investors need to look at an asset’s fundamental value. To take your point Rubbachook, alot of research is done by prudent investors on rental vacancies, town demographics, employment etc. I just think consideration of replacement value of the property + land value should be an essential part of the evaluation process.
Even if I did all my research, I would still like to see what the place looked like.
I would like to see
1. surrounding properties – bad neighbours can effect your ability to rent for a good price
2. condition of property. I would want more than photos. When does it need repaining? Are there any major holes or water damage or stains in carpet. etc etc
3. There could be smells coming from local factories or abbattiors (i cant even spell it)
4. local infrastructure eg. bowls club. if in bad condition – it could show signs of the place falling in population.
5. Graffiti – this can sometimes tell about problems in general area.
6. I would even like to experience the feel of the street. Maybe you may even need to go through a few bad streets to get to your investment property.If you know an area really well and I mean really well, maybe you know the answers to these. But even in my area I would not be satisfied with the purchase of a property unless I knew the answers to these.
I am a builder by trade and I can tell you that some of these little doll houses can be a pain.
If the skeleton is good it doesnt matter about the roof and walls.
If any of you guys needs some major reno in Regional NSW mail me! It might not be as bad[cowboy2] as you think!
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Hi Nathan_b,
I am new to this forum, having just read Steve’s book.
I am not ready to invest yet, but, I live in Coffs Harbour and grew up in Taree and I know the surrounding areas.
If your town is near me I should be able to give you general info on the area to help you make your decision.Cheers
KylieHi Nathan,
received your email and sent you 2 replies but these were sent back to me.
do you have another email address I can send them to?Regards kylie
HI JUST A QUICK NOTE TO INTRODUCE MY SELF, AND INVITE ANY ONE INTERESTED IN A INVESTMENT PROPERTY IN KALGOORLIE WA. TO EMAIL ME AND I WILL SEND THROUGH A INVESTMENT LIST, WITH PROPERTIES WITH LEASES RETURNING FROM 7.5%. I AM A SALES CONSULTANT WITH A WELL ESTABLISHED FIRM, WE HAVE A VERY STRONG RENTAL ROLL AND OFTEN HAVE PROPERTIES WITH G.E.H.A LEASES.
PERSONALY I HAVE BEEN WITH THE FIRM OVER 2 YEARS AND AM A INVESTOR. I WOULD BE HAPPY TO GIVE ANYONE INTERESTED IN OUR MARKET MORE INFO, OUR PROPERTIES RANGE FROM AROUD $100,000 FOR A 1 – 2 BED BRICK AND IRON UNIT. I THINK THIS SITE IS FANTASTIC AND IS FULL OF GREAT INFO, REGARDS SUESue
Stop Shouting – your waking up the kids
Depends on wehich properties one is buying into (re the original question). think Lorne, Vic; think Berry, NSW; or Bowral, NSW. They all have a population of a few hundred, but you would have NO problem getting a loan for them (might find it hard to get entry in those places though- they’re exxy).
I just bought into a place with a few hundred people… BUT… it’s oceanfront, with national park behind it, and has one of the greatest natural structures Australia has. It’s a tourist destination basically, but with a solid population (albeit small) throughout the year. There are NO vacant rental houses there currently. And I don’t have to rely on abbatoirs/factory/mining industries to sustain it.
If you are buying into an area with a small population, there are different ones- some are isolated country towns; some are untouched treasures. The place I am buying into had 700,000 visitors to it last year.
So all small towns are different. Of course, EVERY place one buys int- whether it be an innercity area, a country town, or a coastal village- requires research. Do your research first, then put in an offer.
kay henry
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