I am after people’s opinions on the size of town you’d consider investing in. I know people like Margaret Lomas say 15000 or more people. What’s your opinion. If a town is rural and it is the base of the local hospital and on an important thoroughfare is it sufficient?
Thanks for sharing your opinion
Ruth
Many people invest quite successfully in smaller towns but do your research first
Personally I’d aim for no less than 10,000 – I’d also suss out ABS/council stats to determine whether the population is growing. I’d also want to see more than one main industry within the town.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie M wrote:Personally I'd aim for no less than 10,000 – I'd also suss out ABS/council stats to determine whether the population is growing. I'd also want to see more than one main industry within the town.I go one further on that .. i require that my country properties be localed in towns without singular dependancies. And must have at least THREE main industries stoking the town's employment. It doesnt matter whether thats tourism, agriculture or the annual beerathon it must have at least 3 of these.
Depends on how far away it is from a major town? One of our properties is 10km's from a major town
xdrew wrote:or the annual beerathonHaha, which town is hosting that this year? Scrap the investment, sounds like a great place to live!
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I believe that it’s being held @ Mooball NSW, AGAIN.
Not only is it an issue of size but also an issue of 'banks security'.
Investing in property is often about borrowing money – no point trying to invest somewhere if the major banks/mortgage insurers are uncomfortable lending you money to buy there.
If you have somewhere in mind make sure you ask the broker about lending suitability of your chosen postcode.
And I'll go one further than Derek, and say that even if you are planning to pay cash for your country property and think therefore that his comment about lending suitability of the postcode doesn't apply – think again!
I have 8 country properties – 6 of them in towns of less than 3000 residents and they are all great little earners, but I am now in a situation where the banks will not look at them as security since the 'GFC" (and they only acknowledge a very low percentage of the rent as income) and so now my ability to borrow more is dead in the water!!! Aaah, hindsight!!!The other thing to consider is the fact that if you need to sell a country property in a smaller town in a hurry, you may not be able to. (something else I found out the hard way!!!)
I hope I haven't put you off Ruth – some of the biggest returns will come from country properties but i reiterate what has been said above – do your research! Who would want to live there and why, and failing that, are you prepared to live there yourself if it comes to that… haha, sorry – just joking! (well kind of joking – but that's another story!!!)
Seriously though – a good mix of country and rural is definately a better way to go and that's what i'll be aiming for in the future!
Good Luck with it all.As with any property purchase or other investment, it is even more important with regional property that your due diligence to also determine your exit strategy before you purchase: ie how do I get rid of it if need be? How long will it take? What/who is my market? Which agent will you use? How much will it cost?
Hi Ruth
There are enough big country towns with growth, say over 20,000+ population so maybe those are a better risk.
In NSW there are strong growing towns like Dubbo, Orange, Parkes, Bathurst, Goulburn, Wagga, plenty to choose from.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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