NSW Armidale Investors

Hi there,

Calling all (well any!) Armidale investors.

I'm considering moving to a new rental agency due to moderate results to date. Can I please get recommendations on who you are presently using and would subsequently recommend as a gun rental agency?

Also, I'd be keen to hear any thoughts on how you anticipate the market to perform over the next few years. Growth has been flat over the last few, with units moving back a little. I was there a few months back and was pleasantly surprised by how busy the place got on weekend evenings (both restaurants and bars).

Thanks,

Ryan

 

Insert possible @geoffw retort: Never heard of a place you can rent guns?

 

I would expect growth for Armidale (presuming NSW) to continue its slow but sure trajectory upwards in the future. Obviously you have issues with current manager, condolences. Try doing it yourself, it's not that hard.
Country agencies generally plod along, very rare to see an exceptional one pop out and say pick me.
Good luck, but overall in my opinion Armidale will grow over time.

 

Don't live there, don't know. My comment was in general, I think the larger rural centres of NSW will continue their slow but sure growth. There is only so much room in the big smokes and as these regionals grow more and more infrastructure/industry grows making it organic growth.

Sorry, off topic.

 

According to the APVMA website the new APVMA building will be ready by in mid-2019 - APVMA relocation & Permanent APVMA Armidale office

There's currently about 21 staff already working in Armidale, so another approx 130 to join later this year. However, some specialist jobs will be remaining in Canberra (30-40).

 

Market has been flat for quite a while and is usually counter cyclical to Sydney so might be time for some growth. Lifestyle properties are in demand.

APVMA, new super school, new industrial area at the airport so a few things going on...… with the emphasis on a few things. Still only a university town.

 

@Ryan_bk just wondering how do you feel about Armidale, given that you have rental properties there. What is the attractive points that made you decided to buy there?

 

Hi @lightbringer, for me the Armidale market provides a stable environment in which to create equity and hold a positive cashflow property.

I've completed both a small strata and a renovation in this market, and currently hold 4 rental properties across 2 duplexes. During COVID these 4 properties have not been impacted, with the tenants in place and paying the same rent.

I've spoken with the team @ Propertyology in the past who you might know are probably the most prominent buyers agent who appreciate and buy in regional markets. Their view of the Armidale market is that it is strong, stable and attractive right now. It's not going to shoot the lights out, but is a steady and consistent performer.

I was earlier the year included in YIP and I talk about my two duplexes in this market. You can check it out here if you wish to - New Investor of the Year 2020: Ryan Beck

Thanks, Ryan

 

Hi Ryan, very impressive what you have achieved. I read your link and it is actually motivational. I lived in Tamworth for almost a year and I realised that Armidale (where I went a few times) has potential, let alone the yield is not bad at all based on the current market situation. I am personally looking at rental yield properties at the moment, Could you please give me more details in regards to the "strata titling project" you did in Armidale , how is that done or what are the steps to follow has it worked well for you? I am new at Real Estate investing and always looking at new places to explore. I will really appreciate your input.

Thanks Ryan

 

Thanks for the kind words @AngeloN.

For a strata project you would need to locate an existing property which has multiple titles within the 1 dwelling. This could look like a duplex, or a block of units with 3 or more properties. You could then call the local council and ask to speak with a town planner and discuss with them what your intentions are, their appetite for approving, and what the requirements might be. It's worth flagging that older properties might not have BCA approved firewalls in place, which to introduce can be quite costly - i.e. $10,000's. Other potential changes to the property might include additional water connections, fencing, and car ports. You can outsource the management of the application with council to a surveyor, who will charge you a fee for doing so.

The intention in completing a project like this is to create equity, therefore it's important to complete a feasibility prior to moving forward with any purchase. The feaso should factor in all costs including the survey fees, council fees, building upgrades etc. You can then calculate the expected equity uplift by reviewing comparable sales on Realestate or Corelogic.

It's important to note that the costs to hold a strata'd block is more expensive than holding the one title, this is because you will be paying more in council rates and potentially other outgoings once completed. Therefore from a net yield perspective if you plan to hold onto the properties you'll be in a worse off position. However if like myself at the time the intention is to create equity to refinance, and acquire additional properties, then this strategy can be successful.

I hope this assists.

Cheers, Ryan

 

Hi Ryan,

Thank you for your words, definitely very easy to understand the way you put it out and informative as well. I will be looking at all the factors you mentioned before making a purchase. I believe the strategy of building equity is really smart and is something to look forward to increase your portfolio before hitting the financial brick wall. I will need cash flow properties that with a good project can also generate equity to acquire other properties for CG as well - balanced portfolio. Since i am new at this I believe this strategy suits me better at this early stage (building). Also considering my wage is not as high as well, being positively geared will help me for future projects as the bank will see that my finances are in the green. Time to do the work now.

Kind regards

Angelo N

 

Hi guys, on the subject of Armidale, anyone know the current vacancy rates? Im getting different reports

 

did you find the numbers?

Our 3br IP has been tenanted constantly since settlement Feb 2016 with annual rental increases.

 

That's good to know, no I haven't got any concrete vacancy rate figures yet.

 

Google "SQM Free Data."

Click on "Vacancy Rates."

Enter suburb or postcode.