Hi all
I have realised a potential for positive cashflow in Broken Hill. I have found three properties that would achieve it. However I have not made any move because of concerns over depreciation in the area. To my understanding, the mining industry in Broken Hill is running out and the population is slowly decreasing. My concern is that if I purchased a property, eventually the positive cashflow will end, when nobody wants to rent in Broken Hill, and I couldnt sell up because nobody wants to buy either.
Is anybody able to tell me that I'm wrong? Because if I am, there are great opportunities out there!Hi. I would certainly never critizise anyone that wants to take a calculated punt – however reports on Broken Hill range from everything between calling it Busted Hill, to saying it is a great opportunity. I guess looking at how keen various lenders are to lend for higher loan to value ratios out that way are may give you a better idea. (not very) If Broken Hill does 'go up' capital growth wise, it would be because everywhere else has too, in my personal opinion, and of course as far as cahflow + goes, in all fairness unless you live there for a while or know someone there how are you really going to know where the bad (I mean bad) areas where houses have the windows boarded up when vacant, as opposed to better easier to rent out areas are? If you go that way all the best – but the word bargepole (with a reluctance to touch something with one of them….) certainly comes to mind…….
I have recently heard good things about Broken Hill, but the problem with mining towns is what happens when the work runs out. Maybe check out the history of the town. What sustained it before the mining boom? (Or has it always been a mining town?) What have the ups and downs been like… VERY up and VERY down or just a bit of both? Has it enough infrastructure to sustain it now? It has been around a long time, so maybe it won't up and disappear as soon as other towns might.
Kelly
Hi,
I recommend you take a few days off work and turn up to BH for a visit so you can see for yourself.
I’d still be an accountant if I listened to my friends who told me that I would be crazy to invest in the country.
It wasn’t until I drove and saw for myself that I realised there was opportunity where others saw doubt.
Conversely, I wouldn’t invest in an area that I hadn’t previously visited first hand.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I have been to BH before and I do get vibes that it has great potential! I think I just need to look firther into the mining industry down there, and how long it has left!
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