Hi everyone,
I am new to this forum but I have been reading here for a number of months!!!!
I am keen to buy my first IP
I am originally from Northern beaches of syd but is too expensive for me there.
I have been looking around adelaide and regional areas does any one have any hot tips for free of up and coming areas any advice would be great.
I have been reading investment mags for some time but find that the places they recommend have of course already boomed. I do use the stuff in the back too for median price etc.
What do people think of mildura or bendigo area?
I have seen previous posts but there is nothing lately.
Thanks in advance
What's your budget?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
yeah sorry up to 300k I am looking for something that will be negative close to neautral and good capital growth I have noticed that regional areas fit this more ie mildura /bendigo hasn't had much capital growth but now is a good time to buy
Ballarat VIC. Something close to the hospital.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
any thoughts on mildura?
I have not studied Mildura. I prefer locations closer to the capital cities.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Here is an easy insight. Unless the city or suburb has some severe problems holding it back .. the usual timeframe from boom to boom is about 15 years (give or take 1 year). So .. keeping that in the back of your mind, the easy thing is to look for a suburb or town where the last boom was 12-14 years ago. And usually thats a good indicator of its possibility of value.
Assess it from the following factors .. room for growth in the area, room for improvement on the property, possibilities of area improvement in the near future. Thats what you need to pick a winner. Give yourself the best of all three worlds and you'll get a good deal.
If i was sitting around with a 300k budget in 2011 … i'd be looking for another factor .. the possibiity of maintaining value in tougher times. Which you will need to do. Its one thing to make money on borrowed money. Its quite another to see your equity evaporate .. being left holding onto a loan .. and at that point .. the interest rates go up on you.
Get to know the area you choose to invest in. If its got a standard product (3br house, 2br unit) get to know what these items sell at and their market value. This helps you assess on a day to day whether you are dealing with bargains or sinkholes.
Look for areas of significant change. The top spots around Melbourne at the moment would probably be Geelong and Hastings for value. Check my other posts for where in Geelong.
Even now .. Mildura remains a high risk proposition. I know the figures look good, and I've done them myself. But the long term outlook on the area is placid at best … for the next 15 years at least. Thats the timeframe you are looking to make money on it. And there are better buys.
As a younger investor .. i was thrilled with the prospects of buying cheap in Moe and Morwell. They were VERY cheap (this was 20 years ago). Problem is .. they are STILL very cheap .. with troublesome tenancies and long vacancies. As an investor .. landlord and property maintainer .. thats just not where you want to be.
Do your homework .. and good luck.
thanks for your help I have had a look around geelong but is quite expensive
I was thinking regional town and make money slowly of capital growth and positvely geared after probably 4 years
I understand about moe and morwell did you buy there? and have you made any money from rental and capital growth?
Do have thoughts on buying a duplex or a small group of units? out of our price range but there is not much information
Why would you want slow capital growth? You'd be better off buying a smaller dwelling (such as a unit) in an area that is more proen to experience good growth.
If you have capital growth, then in a couple of years you'll have enough equity to use as a deposit for a second place. And so on and so forth. Buy into something with little or no capital growth and firstly you will not be able to do that, and secondly if you need to offload (sell) the place to trade it for something else in a town that HAS experienced good growth, you will find that since prices in the bad town haven't kept up pace with the good town, the trade-in won't work so well.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'm confused… you mentioned budget is up to $300k but that Geelong was too expensive? Plenty of properties under $300k in the immediate peripheral suburbs of Geelong.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Sum it up nicely without verbage.
The positively geared properties of the countryside are significantly more risky. They incorporate the possible loss of tenancies .. the replacement of acceptable tenancies with 'filler' tenants. And finally due to both of these .. the loss of long term value against both inflation and capital growth. You can make money with these .. but you have to be experienced with property management and acquisition before you attempt these. There are more concerns raised on both of these fronts.
Geelong central is already expensive. However in suburban geelong it is still possible to pickup a fully fledged house in creambrick for about 260k. That wont last much longer.
Wanna buy a house with good returns? Tennant Creek is a little hotspot not to be overlooked! A double brick home can be bought in Tennant Creek in the Northern Territory for under 300k and offer huge returns of 7.8% plus in a very secure government lease.
Tennant Creek once had Australia's highest gold and bismuth copper production and many mines are opening up again now that the price of gold has risen and it is now worthwhile to mine again. This renewed industry adds pressure to the housing supply which is already in desperate demand and 0 vacancy.
The area is largely Government based employees supporting a mostly Indigenous population. Housing is leased from private owners and sub-tenanted (given freely) to employees such as Teachers and Police to attract/recruit them to the area. If there were more houses they would be instantly snapped up for 'head-leasing' but the cost of building there due to distance makes new houses very expensive. There are double brick, 3 bedroom homes with huge well fenced yards up for sale now that are getting $450+ a week rent. And leasing to the Government is guaranteed. No tenant? you still get paid. Damage? It gets repaired. The longer the lease, the higher the return!
And what great places to visit on the way to checking on your investment. Kakadu, The Gorge, Kings Canyon, Devils Marbles, Uluru, Darwin – cheap flights from there to Bali…Perfect addition to anyone's Investment portfolio!
house huntress do you own a porperty in Tennant Creek?
I have looked at it but it looks like the time to buy was about a year ago. Also with a population of only 3000 wouldn't maintenance be expensive as I have heard the quality is not the best.
The prices have pretty much doubled almost tripled in 2 years. Although a head lease is a great deal seems like 2 years too late
your thoughts?
The thing is Tennant Creek appears to be advertised to investors not locals as well that makes me more cautiousI am not overly familiar with Tennant Creek and I may be wrong, but as far as I am aware it is a very violent and unsafe area. I am currently living in Darwin and have had may colleagues and friends pass through there only to comment on how unsafe it is. Apparently the hotels have 24 hour roaming security, it is unsafe to venture out at night and I personally know someone who had their hotel room broken into and items stolen, whilst passing through. This is a short term issue, and the NT Government is trying to clean it up, but as I said I am not overly familiar with the area, so cannot say how this "clean up" is going and if it will be a short term thing or go on for many years.
On the other side, I have been looking into SE QLD for the last 12-18 Months for investing, and am at present purchasing a property in the Ipswich region (an area also recommended to me by my cousin who lives in Brisbane and has owned property in SE QLD for the last 10 years). Whilst the area was hard hit by the floods the area is still great, though try to avoid some of the dodgy house and land packages and estates that are aimed at interstate investors who don't have the time or inclination to travel to the area. Some of the surrounding suburbs are quite cheap (270-315k) and this area is along a great future growth corridor. I ws down there just this weekend, and there is a lot of highway upgrades going on as well as a train line going in. With the recent price drops of the Queensland region I believe this is a great opportunity for anyone looking for an IP, and I am putting my money where my mouth is on this one.
I want to point out that the prices and areas I am talking about were not affected by the floods, and they are not "firesales" on dodgy or flooded houses.
Anyone else who has anything good or bad to say about Ipswich chuck it up here as it would be good to read some other perspectives, as well as provide insight to other investors.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
