NSW Broken Hill - Low debt, very high yield

Wilcannia looked better than Collarenebri.

Try Bourke.

 

CBA classifies the Broken Hill region in with South Australia when you are talking about the branches. This is not BS!

Also I read many years ago that a girl fron Broken Hill ended up competing in a South Australian dancing/Gymnastics competion rather than entering the same event in Sydney... its closer to home. She ended up being the SA champion and representing SA.

 

A lot of organisations group Broken Hill into South Australia.

Broken Hill is in the same time zone as South Australia.

 

Locals also speak with a slight english twang, the same as you hear in South Australia.
It is only 5 and a half hours from Adelaide after all

phone numbers are 08 as well

the biggest give away would be the prevalence of farmers union ice coffee

 

I think Morwells the exact same from memory. 100k-150k homes with 10%+ yields. Morwell probably has more growth potential but both are very poor. Hazelwood has now closed but apparently there's a sports precinct and MAC going into the area supposedly creating many jobs.

 

I used to live in Wilcannia. You would have to have rocks in your head to invest there. It is cheap for a reason....

 

Check out this beauty...

Click here to see...

Rented out for $300/week back in 2011 would equate to over 97% Yield!

Even if rent has dropped to $200-250/week that's still 65-81%!

 

Thats one of the best streets in broken hill and its not a bad house.
I would suggest the 16k is actually 160k

Yes places do sell for 16k in broken hill but they are termite ridden crack shacks

We own a house there and have 14% yield , no issues with it , fully tenanted

Only problem with the town is declining population.
If it ever stabilises i will be buying big.

You could retire by investing 500k in broken hill but it may not last for another 30 years!

 

I remember going to the swimming pools there in BH. Oh and also the Muso Club and there was a pub there with topless barmaids.

The Duke of Earl I think it was called. The bar was always packed four deep. But you didn't mind waiting to get served lol. I'd always order jugs lol.

We went down the South Mine also. Owned by Pasminco . A zinc mine. 1 km down we went.

Very highly unionised and conservative town (the topless pub was frowned upon I heard).

Oh and Pro Hart's art gallery was at the back of his fibro house lol. The Royals loved his art and made him rich by buying his weird paintings. There were plenty of photos of Pro with the Royals.

And Silverton pub was nice.

But after a week in the area we had to get out. It just got hot and boring. Not a place I would invest in but that's just my opinion.

 

It's one of the most disadvantaged town that I ever been in Australia. Population is declining and not many job opportunities. Short term rentals for fly in fly outs (eg, healthcare)are thriving though but seems you need to be local and have links

 

Thanks for sharing. Wild West for sure!

 

Having said that it is far from the worst place you can visit
People there are pretty decent and they dont have any drug problems like most vic / nsw country towns

 

You joke but the whole reason why Australian property is expensive is that we continue to insist on living within 20-40 mins of two capital cities.

The on thing that I've learnt having lived in the USA for the last decade is that I can drive from Boston to Washington (eg Sydney to Melbourne) and hit 10 decent size cities and multiple other smaller towns.

Until Australia decides to grow up and invest in #Tier2cities we are going to continue paying over the norm for our accommodation needs.

(cue the whiners complaining no jobs in orange/nowra/port macquaire etc.....all not understanding that when people move there....the jobs and industry follow).

 

And the Mad Max Museum (MAD MAX MUSEUM – Silverton) is an absolute must see on any visit to Broken Hill.

I was there recently and meeting Adrian Bennett and his lovely wife was a highlight of the trip.

 

I like Broken Hill.

Only nothing there for me, for prob 2 reasons.......

1 Decided to buy in a circle of 1 days driving (i.e...approx 12 hrs)

2 I think the lenders would punish, hard enough in nice rural towns closer to Syd.

What risk rating does it have.....I bet some lenders have no rating or no interest at all, bit of a shame really.......many from Syd consider Penrith past the black stump.

 

I could imagine on a Friday or weekend. Anyone under the age of 50 would have the choice to go out to the only pub or the only pub

No wonder people strat drinking or doing drugs

 

I have found Broken Hill can be a great part of a bigger portfolio.You can get 12-17% returns gross with not too much effort .You just gotta be willing to get yr hands dirty and do a reno -freshen up.
It is good to help cashflow with low risk and low cash in .I use the cashflow to pay down the mortgages then draw it out every few years and buy in better capitol growth areas .I think ive done this 4 or 5 times now in past 13 years .
It is not reliant on mining these days and has 500 million investment to secure water supply going in this year.Also has long term reliable power supply(solar ) and windfarm going in too atm.

Just be careful listening to others about a stigma of an area .

If u pay $35-60K and spend $25K reno you can easily keep good tenants too as the place will be better than most other on town

 

Australia is set for massive population growth. Wonder if mining will return?

 

If choosing between these two for your next holiday I urge you to reconsider Collarenebri.

 

Need to compare apples with apples here.
Other high yielding areas in regional NSW are usually towns of under 3000 people, are just as far from a capital city as Broken Hill and also have declining populations.
If you're after such a high yield property, Broken Hill looks like a capital city compared to the other options.

Willy