NSW Broken Hill - Low debt, very high yield

How was it spared if most towns has that problem? Doesn't make sense.. more oldies there?

 

Can you explain how? Immigration? There's an active debate to curb the yearly immigration numbers. Massive growth = massive congestion = massive burden on public facilities and infra. People don't like it. .

 

Greens do

 

Immigration if of course good if govt is prepared for additional infra, facilities and employment opportunities that it requires which unfortunately doesn't seem to be the case at least in infra and public facilities department.

 

Boom time

 

I do not follow BH, but seen many posts and spoken too people, it seems to be fair enough, everwhere west of Syd past the mountains that I know of has done well or is ok, directly West that is

 

Interested if anyone still holds out here?

 

If I was a young professional earning good money, as many city slickers do these days, I would be buying as many as I could that were in decent condition.
Of not all will earn 12-13% returns and some will be duds, but i reckon it's the cheapest real world lessons in RE investing.

 

12-13% gross rental what is the net rental ?

 

To be fair, agent could pay off his own mortgage pretty quick at that rate!

 

As an investment, do banks offer mortgages on 100k properties, if not it's quite pointless imo.
I mean, a 100k deposit can get you a good property in Brisbane / Perth mortgaged.

 

The banks used to have BH on their list of NO LENDING. The banks probably know what they are on about.

Anyone got the current lists?

 

Hi guys
I did a few purchase and renos this last year - one was in broken hill for sure . It was $40k in a great area .i spent $20k and one weeks labour in town. (Probably worth $99k now I reckon to sell ??)
It’s rented fir $270 (which is even a little under market for a lightly Renovated place but I didn’t put air con in yet and that will
Increase it to about $280-290p/w
It’s a great place for cashflow and easy equity increase if you get Yr hands into it .

 

Tried Posting link sorry;
Address is 420 lane st if u would like to have a look at that one

 

Awesome to hear! Definitely interested. Would you be ok if I pmd you some further questions?

 

This one is 23./‘+ gross (which is reasonable to achieve in broken hill )
Expenses off top of my head
Water :1120$-350$ usage tenant pays =$770
Council:986$
Management 10./‘ =$1404 plus yearly $270 flat for tenants in/out
Insurance :$500
=$3930 costs
So $14040-$3930=$10110
So 16.69./‘ net
Not allowing for any maintenance depending on quality of reno

link
https://www.realestate.com.au/property/420-lane-st-broken-hill-nsw-2880

 

still holding there
house has gone up in value too

current rental is $220
purchase 44k
spent 25k on it from memory

 

Maybe a silly question but can you get renovation costs as part of the loan?

 

not that i know of

in all.honesty i wouldnt buy there fpr your first property
buy a couple in a place like brissy where you can bank on decemt growth long term

broken hill.is the sort of place you pay cash and intend on holding for life

if you go straight into these sorts of places first up you may not be able to buy as many properties as you thought, as the lendimg game has changed

 

When I was looking for a high yielder out west the first question an agent would ask was "who do you bank with cause this bank, this bank and this bank don't lend here"
Don't think I came across a town where no banks would lend but there was often only one of the big four who would. I think it was Westpac from memory considers everything west of Dubbo as the simpson desert.

I didn't go ahead with the plan. Yields sounded great on paper but vacancy rates soon bought them back almost in line with much bigger centres closer in. Didn't look at Broken Hill though.

Willy