How are the regionals doing?

https://www.facebook.com/video.php?v=1836020743133578

 

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

 

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.

 

What about Tamworth?

 

Dubbo too.

 

What is the asking price for this new home? estimate value online says high 500's while Property history says sold in April 2018 for 170K

 

They are quoting the price of the land

 

Regional towns look set to prosper in 2019. The Mornington Peninsula and the Bass Coast (Phillip Island) seem most promising to me.
Victoria’s regional property markets to star in 2019

 

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.

 

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

 

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.

 

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.

 

Geez. Ouchy!

 

30 Lakeview Avenue, Menindee, NSW 2879

 

What is it that makes you think this is a good investment James? Do you know the Menindee area?

 

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

 

Then why did you mention it?

 

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.

 

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.

 

Does beneficiaries mean people on centrelink?