Broken Hill, Bourke

Discussion in 'Where to Buy' started by DJ Adam, 1st Aug, 2020.

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  1. DJ Adam

    DJ Adam Member

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    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?
     
  2. My House QLD

    My House QLD Well-Known Member Business Member

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    What gross yield can you achieve in Broken Hill and Bourke?
     
  3. DJ Adam

    DJ Adam Member

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    I've seen 8-14%. Houses for 140k getting $300 rent
     
  4. strongy1986

    strongy1986 Well-Known Member

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    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
     
  5. DJ Adam

    DJ Adam Member

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    So with 17000 people it's a gamble but not a terrible gamble then
     
  6. DJ Adam

    DJ Adam Member

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    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.
     
  7. strongy1986

    strongy1986 Well-Known Member

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    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
     
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  8. Marg4000

    Marg4000 Well-Known Member

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    Have you ever visited these towns?
     
  9. DJ Adam

    DJ Adam Member

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  10. DJ Adam

    DJ Adam Member

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    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.
     
  11. strongy1986

    strongy1986 Well-Known Member

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    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
     
  12. DJ Adam

    DJ Adam Member

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    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.
     
  13. ellejay

    ellejay Well-Known Member

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    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.
     
  14. DJ Adam

    DJ Adam Member

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    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.
     
  15. ellejay

    ellejay Well-Known Member

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

    The Grinch Well-Known Member

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    Whyalla may be worth a look in
     
  17. DJ Adam

    DJ Adam Member

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    Thanks. I'll check it out