thanks jo,
much appreciatde all your advice.
i will put together a spreadsheet with some minimum standards or infrustructure the area must have.
thanks
dave
Can i ask what town you are discussing here?
Maybe another member here has already done their due diligence on it
Byronent
Adelaide SAHi Henry,
Thanks for your comments.
In no way I would have paid the 15-20% more then what it is worth. If I made an offer it would of been below what I beleive it is to be worth and my last offer (if original not accepted) to be what I beleive it is worth. This would have made it.
Also, what is the problem over only making a small amount of money a year? At least it is CF+ and a start. However if I did decide to buy it after I go and check the town out and made a appropriate offer, at market value it would be more then a few hundred a year.
Why doesn’t anyone ever mention the names of these towns? Bizarre.
Originally posted by Henry:You should never pay too much as you will never get that money back.
NEVER SAY NEVER!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdOriginally posted by inez:Why doesn’t anyone ever mention the names of these towns? Bizarre.
Bizarre??? Nahhhhhh….they’re just plain embarrassed!!![blush2]
Or they don’t want some troll to swoop on their investment possibiliy before they get a chance to do it. You may have noticed that they have no problem naming the town after they have bought in an effort to get more people to buy there and push their price up.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWell FWIW Dave buddy….this little gem you can keep all to yourself….I wouldn’t touch it with a barge pole!!!! [wacko]
Depends how you define the population in the area. It may be a large postcode that includes many towns and the lenders may do it. I have a few lenders happy to do 80% fully verified loans in most areas – including country towns as long as the home is zoned residential.
In any case, I also have access to private lenders who will do rural zoned properties either low doc or fully verified. Of course, rates would be higher.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdSeems to be a lot of sarcasm and very little constructive advice on the go. Smaller towns seem to suit some people and not others. There is money to be made in small towns and, at the moment they offer better oportunities than urban areas. As far as your town is concerned, Dave, you have to examine the pros and cons carefully. There isn’t a ‘rule’ to apply to all towns because they are all different. The infrastructure of small towns go beyond the boundries and you have to look at the possibility that employment is found in surrounding areas or towns, that schools are also available not just in town but nearby and of course, medical services do operate differently in rural areas and can, in fact, be more effective than those in cities. We have all heard horror stories of people in ambulances being transported from city hospital to city hospital waiting for a bed.
The point is that you have a positive cash flow situation and using good sensible criteria you can determine the value of this as an investment.
A quick look at a town is not enough, you have to look a bit beyond the boundries to effectively analize it’s potential.Keep in mind that the retiring Baby Boomers will consider small towns and rural properties as candidates for life style retirement. Selling off a city property and buying a cheaper place in the country is exactly what many retirees will do. This suggests a steady future for these types of investments.
We have a tenant couple in an IP who prefer to rent in the country in retirement so they can invest and afford to do the things they prefer to do. We may see a lot more of this.
Baby Boomers more than likely won’t want to retire to “one horse” towns Marsden, they are a fussy breed, they like their creature comforts and won’t tolerate driving many kms to get to their nearest police station, hospital, medical centre etc., but would rather have all the amenities as close by as possible.
Are you speaking from experience Jo?
SURELY NOT!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdDepends on whether you class me as a Baby Boomer!!! [biggrin]
Guess it depends on which cut off date is correct 1961 or 1964.[blink]
Originally posted by Monopoly:Originally posted by inez:Why doesn’t anyone ever mention the names of these towns? Bizarre.
Bizarre??? Nahhhhhh….they’re just plain embarrassed!!![blush2]
Nahhhhh, they are just convinced some of us would jump on their opportunities. I small town is not hard to find and the deals they are talking about would be a cinch to pinch.
Byronent
Adelaide SAI suppose, Mono, that there are some very remote ‘small towns’ that lack these services. On the other hand, there are many, many more that have a complete range of services designed to take care of all the problems you outline. Remarkably, the police are extremely mobile and if you are speeding it is always wise to be aware of that fact. Medical systems certainly work in a very effective way. The school system is excellent with student ratio numbers a fraction of that in the big cities and towns. There is an incredible number of affordable private schools. That infrastructure is lacking in the country is wrong. Generally it is very good.
Your right tho Mono, you have to do some thorough checking but small towns are usually more transparent than bigger centres and the answers are easier to find. All in all, a good thing.
Don’t tell me that BBs are not going to retire to the country as a matter of choice and finance. I can see it right in front of me! I have sold properties to these BBs who plan to cash up and move. We have a retired couple who rent one of my IPs because it is more economically sound. They cashed up and moved to a country rental! We don’t live in a Bowral either but a real country town making it’s living off the land.
Relax Marsden, I have nothing against small country towns, far from it, I used to have friends in Rugby (NSW) where (at the time, can’t say today) the population was all of 50. And I never said infrastructure is not good in the country (you did)!!! What I said, and am still saying is that there needs to be adequate infrastructure (regardless of whether the population is 100 or 10,000) in order to support its community, without it, sure the town may well thrive for a while, but eventually it will go belly up.
As for BB’s; you are dealing with the minority!!! A colleague of mine currently completing his doctorate has been researching, having just completed a 5 year study of the BB’s tracking their movements (trends) reports that the numbers of BB’s moving to “small” (<1500 people) towns (rural or coastal) is minimal!!! And it is not because of “lack of” infrastructure (although yes, I did have a dig about that, my apologies) it was because of long term feelings of isolation from family and friends!!!
So please, can we call a truce now…you know city to country??? [winking]
Cheers,
Jo
Originally posted by dave78:The property is a 3BR house on a large block of land that have sub-division opportuniies. Has a new tenant that has signed up for $120pw for 12 months. The house is on the market for $59,000. The average home is selling in this area that is of similar age, size, and quality has been sellig around $45,000 to $50,000. I am guessing the owner is going for the hihger selling price as he has a good rental return. I have also been told it is rare to pay more then $100pw rent in this town.
Hi Dave,
In providing the above information you have provided sufficient reason not to invest here anyway.
Not only is the house priced at the upper end of the market, the rent is too and as a rule of thumb country people like their little bit of space – so to consider a subdivision in a wheat farming area is a bit pie in the sky – given subdivision costs are likely to be to close to or more than the cost of purchasing a block of land in the same locality.
1000 people in a one industry town leaves you very vulnerable to changes in the state of the wheat industry – which continues to experience increasing farm sizes with fewer families remaining in the town. WA is littered with wheatbelt communities that see the young adults finish school, go to boarding school, move to the city and rarely return and thus they see a downward population spiral effect taking place.
These departing people are not being replaced by others who move into the town seeking a cheaper lifestyle. The bulk of people who do this prefer coastal communities and/or areas with appropriate infrastruture commensurate with the needs of their age group. The lure of proximity to friends and families is still too strong – the proliferation of retirement complexes in city areas is testament to this trend.
Placing ~$50K (give or take a bit) into a town this size is courting disaster – and that is assuming the lender will recognise 80% of the value of the property.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Hi Dave,
I’m sorry, I didn’t mean to sound sarcastic with my previous entry. Its just that I know a lot of people up in North Q do retire to small towns on the coast and on the Atherton Tablelands. How ever some of these towns are very small but I guess are quite close to amenities in larger towns. They just want to be in quiet areas away from every thing. InezHi All,
Thanks for the feedback.
Much appreciated!
Sorry Dave,
this is nothing to do with your original question. I’ve just realised that I’m a baby boomer-I had no idea!
Oh my god!
Landt.
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