Broken hill – anyone own property there?

Sandtrackers wrote:

Hi there, am glad this post has resurfaced, as I was also looking at BH for my next investment. I am from WA so it is my 1st time looking interstate. Can I get your thoughts people, on the following. i am considering and comparing investing here to perhaps that of a wa mining town – Karratha and surrounds? Any thoughts? It would also be a buy without viewing if it is BH. i need low risk and money in my pocket each week. I can’t afford for potentially high vacancy rates, due to cf. Also, I have approximately 90,000 in Super, and wanted to consider smsf? I believe it is costly to set up, but can someone advise on how it works. Ie as it is a Superfund doing the investing, would I still have access to the +ve CF? or would i need to let it build up again and use as a deposit for another IP? I also have my ppor valued at say 490,000 and one IP valued at say 400,ooo, with loans of 635,000. Equity therefore of 255,000. Is it better therefore to use my equity here or go the smsf? We have a household income of around 100,000 PA so would hope serviceability isn’t an issue… thanks for your help anyone and everyone :)

Hi there,

I can cover the SMSF side. With your super balance you will most likely borrow to invest. Cost of set up of SMSF and and Bare Trust will be around $2500. Yes, its the SMSF doing the investing, if you purchase a residential property, you cannot live in it and will need to rent it out. For BH, you will need to consider whether your property will be able to be rented in the long term and importantly, the maintenance required, particularly if its an old property.

Hope that helps

Ivan

I’m also looking at BH at the moment to diversify my portfolio as a high yield (cash flow) property to offset my negative gearing ones. What I found out about properties here are:
– Properties below 100K tend to have higher maintenance requirements.
– They’re not constructing much here so vacancy rates are low.

Since it looks like buyer’s market here, I hope to get an offer at 15% discounted from listed price. Anyone had issues with negotiating in BH before?

Hi all, I am living in Broken Hill. I could potentially do some property inspections for people looking to invest…