Investing in Bathurst NSW

Hi folks,

Just saw this post and thought I'd add my two cents..being a life long Bathurst resident and all!

Patrick was correct about uni, weather, importance of insulation, heating and cooling. I can't emphasise enough that Kelso is one suburb you should avoid – personally, I would never buy a property on the Sydney side of the Macquarie River.

Kelso is home to drugs, scrappy houses, scrappy tenants, dole bludgers and all those young 15 year old mothers you see with 3 children hanging off their hips happy that each newborn has added another $5000 for their cigarettes and playstations. Call me a snob, but i say it as I see it!

With the creation and expansion of Newcrest gold mine in Orange, corporate mining companies have all but taken rental properties in this town (Orange) and are commanding extremely high prices for furnished dwellings eg. $750/w for a fully furnished 3br home.

Bathurst is experiencing an influx of miners too, however we are also seeing lots of people who work in Orange NOW living in Bathurst because the mines have taken ordinary people out of the rental market. My neighbour is a teacher in Orange and could no longer afford to rent there last year so she moved to Bathurst and commutes every day.

Bathurst just recently (and very quietly mind you!) superceded Orange in population (40'000) and the town is currently undergoing somewhat of a 'facial' reconstruction thanks by and large to a very wealthy local commercial property developer.

I am buying my first investment property in the coming weeks and I have chosen to stay focused in Bathurst – coal mines in Lithgow, gold mines in Orange, multiple manufacturing plants (Mars Petfood, Simplot, Devro and Nestle in Blayney) are right on our doorstep and no one seems to have a problem commuting if they work outside of the town, like I do.

The university has just opened a dental faculty and in the coming years a private hospital is also planned for the site. There are 4 public and 4 catholic primary schools, 2 public  and 4 catholic/private high schools and there is word that more will be built in the near future.

I am more than happy to answer any questions – even if I do sound a little biased!!

Hi Patrick,

I was hoping for a positive cash flow with corporate tenants (if I can get some more mining contacts!), will keep you posted on my progress!

Kate

Suggestion.
If I was renting to the mining market, it'd be like this :
Fully furnished
3-4 brms
2-3 bathrooms
huge gas HWS system(s)
Gas ducted heating
R/C split system air con to every bedroom & common rooms like lounge
BBQ & deck
Turn lawn into parking
Hi Speed wi-fi
Big flat screen
Beer fridge in the garage
The mining guests are mostly guys, want comfort and have a big budget
and rent long term.
At the moment, my friends with motels in Orange, Bathurst and Lithgow are under pressure to rent out every room to mining Monday – Friday, some starting Sunday night ready for the early starts. M-F occupancy is 100% most places. Weekends are slower and reduce the weekly occ rate to 80%.
No motel will rent out all their rooms  every M-F to a mining company for fear they will lose all their existing client base and have nothing if the mining co moves the men. So a well furnished comfy big house or units would do well. Send in a cleaner weekly, and leave a blank page for repairs & maintenance. Mind you, a lot of them are tradies anyway.
Rent it by the week or month as a package, charge for utilities as well.
Advertise in local papers. Price , charge for whole house only at the rate of $200 per room per week + utilities.
Their option is to pay for a motel room at about $80 per night.
Cheers
thecrest

Hi Jack
I don't think the house prices in Bathurst reflect the high returns possible from mining guests, yet.
The market in Bathurst caters to others mainly , but mining people don't have time to spend searching, they need it now and every week. 
Cheers
thecrest

Hi Kate
Suggestions 
 for your first property and considering the high return, you deal with an agent.
Shop around Orange, cut the best deal you can find and over $500 pw rent  suggest you try to restrict commission to 6%  and 50% of first week's rent since they're making enough for very little effort since you already have a tenant  for them and a good one at that.
If there are lawns, cut them yourself or use a local mowing service to cut them as required, no more than 15 cuts a year coz the winter is harsh. Engineering co should pay not less than monthly in advance and a bond. (don't let the agent kid you into paying the first week or month's rent as commission.  Agent should pay you monthly less commission.
Ask around a few of the motels for a cleaner, they're all too busy mondays so Tuesday rate is $25/hr min 2 hrs.
You only need a lease with 3 months fixed, then on continuation.
Use hardy leather furniture and make the house comfy, the mining guys are highly paid and come from very comfortable homes. If they're gone every weekend, plan key pickup & return facilities.
If you PM me I can give you a contact in Orange.
I made a lot of assumptions here for expediency, and may have put in too much unnecessary info.
Good luck
Cheers
thecrest

Thank you all for such sound and well researched advice! I'm so glad I found this website!

I agree with amyhunz, I think to fly soley on the coat tails of the mining industry cuts out many other well paid professions that also reside in this area, so I'm in a quandry as to whether I buy and furnish or buy and lease (btw am looking at buying boyfriend's house in Bathurst – from his profit he is looking at houses in Blayney/Millthorpe to cater to mining market and 'McPhillamy's mine'….if that ever goes ahead?!

Now that I have some extremely well qualified people in this forum post, now might be the opportune time to ask some naive questions considering I'm a first time investor!

Road to first IP so far….

*Financial Health Check with Chan and Naylor – suggested Property Investment/Hybrid trust for asset protection, estate planning etc.  Have I been suckered in?

* I'm an electrician for a manufacturing company, do not work in a litigable environment and have no aspirations to own a company – do I need asset protection? Due to circumstances, children are not part of my future so estate planning seems somewhat futile to me?

* Bank is currently waiting on an answer to foward approval because they need to value my PPOR either in my name or trusts name? I don't want the hold up, nor do I want to extra costs incurred in establishing a trust in the first place!

What advice can you guys impart?

amyhunz – do you have an accountant in this area that you'd recommend? Are you're IP's positive or negative geared?H.E.L.P!!!

Thanks

Kate

Hi Amy,

Actually, I checked through your threads after my post and noticed you are in a similar situation to mine – with no accountant too! Would love to hear how your accountant in Sydney fares as I need all the (right) help I can get!
I am heavily leaning towards the IP in my name – considering it is my first venture into investing and given my particular circumstances….I would love an IP2 and an IP3, IP4, IP5 in years to come so I will analyse my 'business strategy' at each step.

I can't believe you friends have moved to Cowra for accomm!! That's SO FAR AWAY!! I will keep you as a contact and will let you know if partner decides in Blayney/Millthorpe!

Thank you for your advice and assistance!
Much appreciated from a first time novice!!

Kate

Hi Shellanddaniel.
Nice area Windradyne, had family living in Ribbon Gum Place. Moved into CBD, handy but noisy.
PM me a link to your property if you can. I visit Bathurst regularly.
Cheers
thecrest