What characteristics do you look for in a regional city to invest in when looking for postive cashflow IP? i.e. ideal population size etc
Population size, employment stats, employers in the area – you don’t want a one horse town. Population growth stats are extremely important, as you don’t want to buy in a town losing people, as vacancy rates will rise and rents soften.
Do take note though, there are CF+ investment properties in metro city capitals. Adelaide is a prime hunting ground for this, where many people are buying CF+ investments within 30-40 minutes of the CBD within established areas, infrastructure programs etc.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
The short version is: It depends. On your goals, your level of knowledge, your risk profile etc etc. What I might look for in a regional might be different to you, or someone else.
Start with your goals, then develop a strategy likely to get you there, then buy properties which fit the strategy. Do you want just plain old max cashflow? Or do you want capital growth? Renovation value add? Developing? There are many sub categories and property types which will impact on your choice of location.
Assuming you have done all this, then population growth is a biggie, employment (current and potential) is another, these would be fundamental analysis, then vacancy rate would be the biggest technical measure, followed by the others.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
In addition to the things already mentioned I look for ‘deterrents’- regional centres with large social housing areas- particularly ones which are being sold off like Orange and Tamworth. I personally like anywhere that you can get to by plane because the town will be a reasonable size. Anywhere with a decent size TAFE, perhaps a Uni campus, hospital and government offices is a reasonable long term bet. Tt’s also worth looking at the percentage of people who rent in those towns and cities.
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