Broken Hill, Bourke

I'm interested in positive cash flow property although they're hard to find unless you have the money or can get additional financing for renovations or granny flats.
I am not too concerned with capital growth. I want passive income to retire on as being a sole trader I have no super and am 41.
Does anyone think places like Broken Hill and Bourke are safe investment choices or are they too isolated with tenants who are a higher risk of causing problems?

 

What gross yield can you achieve in Broken Hill and Bourke?

 

I've seen 8-14%. Houses for 140k getting $300 rent

 

Only risk is population risk
population has been declining for decades

however as australias population grows it become more likely that isolated country towns that have work will reverse the trend

it hasnt happened yet in broken hill

Towns with populations under 1000 are most at risk

once you get under 1000 people you loose services and the town becomes unviable

 

So with 17000 people it's a gamble but not a terrible gamble then

 

After some quick research, 21000 people in 2001 to 19500 people in 2010. It actually looks like a big gamble now. Rental vacancies must be huge.

 

your only looking at one side of the equation

the other is property supply
the 100 year old houses become uninhabitable at about the same rate as population exodus

which means its not that hard to find a tenant

 

Have you ever visited these towns?

 

No

 

I live in Goulburn NSW and would definitely spend a few days inspecting houses and the area there if I decided I really wanted to purchase there.

 

if 10% yields ans spending around 150k are of interest then i would look harder at other towns around Aus as there are better less risky options
might require a little bit of work though

 

Thanks Strongy, I've looked at a few places like Elizabeth but it's a long way to travel unless I buy it sight unseen. I bought a dugout in Coober Pedy once and I lost 20k on it so I don't want to do that again. Is there any areas you could recommend that I start looking at,? I'm kind of new at this.

 

Buy and hold (especially at this point in the cycle) is an extremely slow road to passive income. If you have the appetite look at developing.

 

I'm self employed with no supper so I don't think I'd get the financing. I'd love to buy a block and build two houses or a duplex but I don't realistically see it happening.

 

Not sure where you're looking but it can be done in regional areas for people willing to look outside the box.

 

Whyalla may be worth a look in

 

Thanks. I'll check it out