I am new to property investing and considering regional NSW as there seems to be a lot of sweet deals especially with whopping big blocks that could be subdivided, house plonked on, reno’d etc. But everyone I talk to says don’t do it. I think that it’s mad though to have a property in a city that’s losing money.
Any suggestions and do banks also look poorly on country towns?There have been a few discusions about country properties in the past. A lot of negative feeling exists regarding the value of buying in the country largely to do with future growth in small rural towns. While you have to look into the reason for the continued existance of some of these towns some have very promising prospects. I feel that country property investment holds great promise because of the appeal to retirees of lower prices,rents and a more pleasant way of life. The dangers lie in trying to apply a city mind set to rural life. Do not over capitalise! Subdividing a large block does not have the same impact in the country as it would in a popular city suburb.
The same problem exists regarding cash flow properties with yield still weak because of the general market slump and overpriced properties.
The banks generally will lend in rural towns but farms and properties out of the town are a different matter. I have never experienced any borrowing problems but I only invest the family home type of property.All of my properties are in larger regional towns (Vic and NSW). I have one loser because of lack of due diligence. All of the others have done better than I expected.
I had friends who said “Why are you buying there? You’re better of investing in the major cities ete etc”. They have since bought in some of the same areas because of the results I’ve achieved.
I agree with Marsden re subdividing in country areas. Land is not usually a scarse resource.
You need to decide what you want to achieve from your property investments then do the due diligence on the area you are interested in to see if it can support your goals.
If a bank has a branch in a town you want to invest in you can usually get the money if you meet their other criteria although some banks have better terms for country areas than others.
Good luck and happy hunting.
Anne.
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