Where to now?

Nice one Richard Taylor

Absolute pleasure Ben.

Great to have really nice clients like you and Jac on board.
Makes the whole job really worthwhile.

In regards to IP 2 Ben some good regional buys around. Nothing to stop you thinking about interstate which certainly could be a wee bit cheaper than Qld at the moment.

Cheers

Yours in Finance

What regional areas of NSW are you considering?

Engelo

Ok cool,

I would go for Wellington, I posted more on Wellington in a few recent posts. Im liking the yields there and low entry housing. It also gets influx from Dubbo and Orange.

Engelo

We just bought in Dubbo. getting about 6.5% gross return without doing any work. hopefully we can lift it with a bit of TLC if the tenant ever moves out.
The prospects look good with 1% rental vacancy and the prospect of 1000 new jobs in 2 new mines plus any indirect jobs over the next few years.

Long term Wellington to me doesn't seem to be a sustainable town. lots of boarded up shops and social problems, although the new jail was a windfall.
That being said, property generally sits on the market for longer.  So if you fancy yourself as a bit of a negotiator their may be some good deals to be found with good cash flow.

Wakebrownb,

Where was your first IP? If you arent in around the mining region in QLD then I think you should right now. If you can afford it get into somewhere like Emerald QLD where the yields are 7-9% and the demand is only set to continue.
# large mines opening up in the next few years in Alpha and the FIFO workers will all have revised rental support from the mining companies up to $2000 a week to rent. They will all do this in emerald as its only 100km East of Alpha so I would suggest if you want both CG and high yield for cash flow, look no further. I can recommend who you can buy through as I have done this and it has been great.

Sorry Wake, would have to say steer away from Emerald. Great on face value, but Suncorp recently announced the will not insure there due to the flooding risk bein too high. This will have repercussions with the banks also as they reassess their risk, so just a bit too ugly up there now.
There are a lot of strong places to look at, but he elephant in the room here is your mortgage. You need to buy in an area where you’ll get stronger growth over the shorter term so you can sell up in a few years and pay a big chunk of your mortgage down. This will make it easier and easier to get your investment portfolio moving along.
There are some strong areas that can achieve this, with great rental returns also, so consider this option too.

in my opinion you are over-exposed in a 'smaller. mining town'

Places like Emerald may be OK for one property as a complement to the remainder of your portfolio but, for me, not a place to have your whole portfolio. That is not necessarily a knock on Emerald rather a knock on an aspect of your strategy to date.

Hi fellow investors.

New to the website and this blog. PPOR is Sydney and I’m looking at Muswellbrook, Singleton as an investment. Strategy really is to buy well, undertake some quick TLC such as polished floor broads, new kitchen, and/or maybe new bathroom. Rent out asap as a +ve cash flow, or almost +ve.

I’ve taken note of the varying contributors who suggest furnishing is a good idea, as many mine employees are new to area and may not have furniture.

Looking at 3 bed houses, in good areas. I guess I am after the perfect investment, good potential for capital growth and as near to +ve cash flow as possible.

Be keen to hear of anyone’s views on this strategy and my proposed areas.

Best
David