How are the regionals doing?

Discussion in 'Where to Buy' started by TMNT, 22nd Jul, 2016.

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  1. euro73

    euro73 Well-Known Member Business Member

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  2. euro73

    euro73 Well-Known Member Business Member

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    We've been in Orange for 2 years already, selling brand new Dual Occ's (4 bedroom homes + 1 bedroom granny flats) for 565-580K , which is @ the price of new 4 bedroom homes.

    Killer deals. Killer rents ( now achieving $680 per week )

    Prices in Orange are up over 10% year to date. Rents are up over 8% year to date.Just the beginning. So whats driving it? Its very simple.

    Strong population growth is the first thing - which is being driven by the expansion of the public and private hospitals - Orange Medical Precinct is now the largest outside Westmead. That means lots of construction jobs and medical jobs, which means lots of well paid professionals moving to Orange now and for years to come as the hospital expansion continues
    Expansion of Newcrest Mining's Gold Mine ( Cadia East ) and opening of Regis Resources new gold mine, McPhillamy's - this means lots of high paying mining and construction jobs moving to Orange now and for several years to come as the mines expand further
    Department of Primary Industries HQ moving to Orange, - this means lots of Govt jobs moving to Orange in the coming years as the new office park is completed.
    Tree changers and young families relocating for lifestyle and affordability .
    New Medical School opening in 2021

    So we are seeing all kinds of pull factors and population growth - and most of it is from highly paid workers. All of this is creating /has created an incredible shortage of available/registered land in the area, which is driving prices higher daily. Still plenty of legs in Orange @Anthony Brew

    Next tranche of dual occ's coming very soon. Here's a reminder of the finished product...

    17 Buckland Drive, ORANGE, 2800, New South Wales

    35a Turquoise Way, ORANGE, 2800, New South Wales

    13 Stevenson Way, ORANGE, 2800, New South Wales
     
    Last edited: 24th Oct, 2018
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  3. Brady

    Brady Well-Known Member

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    What are you using for the 10% figure
    @euro73

    I know there has been growth in the area, I own a property in Bathurst - so watch the area a bit.
     
  4. Brody Hales

    Brody Hales Member

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    What about Tamworth?
     
  5. Brody Hales

    Brody Hales Member

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    Dubbo too.
     
  6. radioactive

    radioactive Well-Known Member

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  7. euro73

    euro73 Well-Known Member Business Member

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    They are quoting the price of the land :)
     
  8. johnmteliza

    johnmteliza Well-Known Member

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  9. Diesel1990

    Diesel1990 Member

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    Hello, long time lurker here but I just got an email from my property manager updating the current chinchilla market I thought you all might find interesting. I've got two neg geared properties there but have always had tenants in them.
     

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  10. Luca

    Luca Well-Known Member

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    Any particular reason why you bought 2 neg geared properties in Chinchilla?
     
  11. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Congrats it appears vacancies are down under 3% after years of pain.

    They possibly weren't neg when purchased. Rents fell big time there when mining boom ended.
     
  12. Diesel1990

    Diesel1990 Member

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    I brought in 2008 & 2009 put the loans on IO, left town and forgot about them a bit tbh. Wish I had found property chat 10 years ago! I paid $289k for one and $290 for another and they are both worth about $150k each now.
     
  13. TMNT

    TMNT Well-Known Member

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    Geez. Ouchy!
     
  14. JamesP

    JamesP Well-Known Member

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  15. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  16. JamesP

    JamesP Well-Known Member

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    I wouldn't invest there. Too low a price point maintenance would cancel out any growth.

    The lake is dry and the area's been in the news a lot recently. If cubbie station are forced to return all the water they currently hold back into the river, the area could see a mini boom
     
  17. TMNT

    TMNT Well-Known Member

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    Then why did you mention it?
     
  18. JamesP

    JamesP Well-Known Member

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    When the water in the lake and river comeback it's a guaranteed price increase. I have no clue on the area itself or whether it would be worthwhile buying and holding until the water returns. It might be worth investing there I have no idea. I'm not even sure if the area has a rental market, just no water currently.
     
    Last edited: 28th Jan, 2019
  19. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    So it sounds like anything but a guarantee - can I please suggest using a better system for selecting markets!

    Some tips: I like to start with risk minimisation, (what are the kinds of risks I won't tolerate, and what are the ones I can understand/manage) then we broadly look to a diversity of economy, look at the current strength of the rental market, and projected strength also, which is often tied to public and private infrastructure spending and employment projects. We look for some degree of gentrification and new demand from boomers, young families or both. I want to see a stable population today and an evidence base for population and economic growth into the next 5+ years. We look at the levels of planned/approved/available housing supply and ideally you want the demand increasing whilst the supply is constrained or at least limited in some way. If you can find all that (and its not overpriced already) you are half way there.
     
    TAJ and wilso8948 like this.