After attending Dean Parker's talk at the 3 day conference I'm starting to look for development deals in smaller country towns. Does anyone have experience/advice in this area?
Can be much harder to get finance in the smaller towns.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi bek
I had an experience purchasing a property located in a country town, Parkes, which is an established town close to Orange, NSW. I found that financiers were fairly hesitant to lend me over 75% of the purchase price, even though the building was positively geared, on the main road and a solid rental history. That being said, Parkes is not a large country town; as financiers will be more leniant on larger country towns that exceed a certain threshold.
Given the increased riskiness of country towns, I'd suggest assessing the region economically and historically as well as speaking with the locals about the property and the reputation of the area. The latter saved me $400k, as I was going to buy a block of flats in what was considered the suburb's most dangerous street. And I only found this out by speaking to the employees at the information centre.
Hope this helps.
Regards
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