How are the regionals doing?

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

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Just a general update post election... in the last month I have been through NSW regionals including the south coast (der), Queanbeyan, Braidwood, Yass, Wagga Wagga, Junee, Cooma, and a few others. The bigger towns seem very vibrant, smaller ones like Junee still quiet but overall upbeat in terms of conditions. Rain has helped the Wagga to Junee stretch farmers but north of Temora they are still in drought. Cooma is buzzing with Snowy Hydro 2.0 and the coastals seem to have shrugged off any Sydney style price falls and at the very least have stablised. I have seen a few examples of strength with property prices rebounding a lot faster than I thought although this is patchy. Locals outside of Sydney are just back to business and not as interested in the paper headlines perhaps...
     
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  2. Cousinit

    Cousinit Well-Known Member

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    Sure does buddy!

    It wasn't always that way though.
     
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  3. AnDy62

    AnDy62 Active Member

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    What are your thoughts on Queanbeyan? I'm quite favourable on it just because of the proximity to Canberra and the relative affordability (particularly units). ACT government has been gouging property owners (and investors particularly), causing rental stress in Canberra - probably some flow on impact to increased demand for rentals in Qbn.
     
  4. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Yep, logic is sound. I like it for the same reasons. Do be aware of Googong and the supply coming which is a mixed blessing/curse in many ways. As it is new builds (with new build prices) it shouldn't impact cheaper units that are well located to central Q so much. However it could put a dampener on any short term capital gains. Focus on quality buildings, low BC's and location to minimise risk of cash flow blow outs.
     
  5. SkyeR

    SkyeR Member

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    Thoughts on Latrobe Valley? could this be a good year?
     
  6. jimmy

    jimmy Well-Known Member

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    Can only speak for Traralgon as I know the market quiet well. Stock is pretty low so anything priced right and in good condition is selling straight away. The rental market is as tight as anything so some of the people trying to rent have been forced to buy as they can’t get a rental (I know as that’s what happened to my new next door neighbour). The economy seems to be doing well for now and a lot of new projects upcoming from the 50m new aquatic centre, the new performing arts theatre and the new cinemas. So in my opinion Traralgon is looking good, not sure it will boom though if that’s what your expecting, possibly it’s a bit of slow and steady growth, but who knows and I am a bit biased :) DYOR
     
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  7. SkyeR

    SkyeR Member

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    Thank you for your reply. I’ve done a lot of research into the area and have noticed a lot of upcoming projects even towards Drouin which could give a lot of the area a good boost, but just wanted to see what other people’s opinions were as I’m very new to investing
     
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  8. Bee-mumma

    Bee-mumma Well-Known Member

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    Traralgon... well, there is some opportunities. Get in quick. The figures look quite good in Traralgon at the moment.
    But then again, I've researched this thoroughly before jumping in with two feet.
    In addition to the a new aquatic center, cinema, development retail buildings on the cinema site, new performing arts center, employment (Centerlink call center, ASIC, retail, Farming, New developments in power industry and the paper industry), we also have a change in dynamics with the new school buildings/ amalgamation of Lavalla and Traralgon College. There is also the 'lifestyle' cafe culture and the sport culture including the massive sports center near Kosciusko street, and the international & interstate visitors that come to play tennis.
    Then we have a environment where most real estate agents need more rentals on their books, and the shortage of supply particularly in the lower end is driving up prices, which means better yeild. You could do a lot worse!
    In my opinion, Drouin is already flipped, so that the price of the properties makes it very hard to get it to a cost positive/ neutral state and it is unlikely that the market will drive prices higher in the short term. You can still get cash positive properties in Traralgon.
    In the future, a better train line, and being 1.5hours from the city... people will travel more than they already do. Driving prices along this whole train line up further.

    Just looking in.
    Buying in Traralgon for us.

    Quite excited!
     
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  9. TMNT

    TMNT Well-Known Member

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  10. Adrianz

    Adrianz Active Member

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    Quick question, I'm looking to invest in the QLD area around 4 hours west of Brisbane in a town called Miles. Seems like townhouses are selling for 100k and renting for $180-$190pw.

    Are these towns on the way back up? I can see historically they were selling for 300k-400k 5 years ago during the mining era.

    What are everyone's thoughts on investing in these areas in 2020?
     
  11. nuzullandchicky

    nuzullandchicky Well-Known Member

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    I live an hour from Miles and there is no industry there other than farming and gas. If its a high risk IP you want then possibly but I wouldn't invest anywhere west of Toowoomba IMO.
     
  12. nuzullandchicky

    nuzullandchicky Well-Known Member

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    Hi there. Hope you don't mind me asking but how did/do you find Surat Basin as a property manager? Have they been good to you?
     
  13. Diesel1990

    Diesel1990 Active Member

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    Yeah, good. Haven't had too much drama with these houses at all, consistently had tenants. Mostly just moved out as they brought their own homes. Think it's a 9.5% management fee. Are you looking to buy in chinchilla?
     
  14. nuzullandchicky

    nuzullandchicky Well-Known Member

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    Yes Ive just purchased there but plan on renovating in the interim. Holy cow 9.5%!!! I live fairly local so was weighing up managing this myself. Do you have any other property managers to compare them to? The town is actually starting to pick up again with Origin taking on a new contract and the solar farm going in. The town is really busy at the moment and not much vacancies.
     
  15. The Grinch

    The Grinch Well-Known Member

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    9.5%, heck. I thought we had it bad in Cairns.

    I'd surely look at managing it myself if possible at that price
     
  16. Diesel1990

    Diesel1990 Active Member

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    Just my 2 cents, don't invest in the western downs for growth. I haven't had a lot of experience with other property managers but I also haven't had any drama with the properties/tenants. Even when that hail came through and destroyed half the town they were super helpful. I pay 10% management fee on the sunshine coast but I don't have any issues like other people on here seem to have. Also the western downs regional council is offering a rebate to put water tanks in atm. Maybe check that out.
     
  17. JenJen

    JenJen Well-Known Member

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    Hi @The Grinch
    I feel your pain - 9.5% is way too high!!
    I could potentially negotiate a much better rate for you. PM me if you’re interested.
    Jen
     
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  18. nuzullandchicky

    nuzullandchicky Well-Known Member

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    Yes from a CG point of view I totally agree. This is really a project house that I will most likely keep for now. In comparison to the 10% that is outrageous. I pay 6% on Brissy northside and they are very competent. I’m wandering what my options will be in Chinchilla though.
     
  19. Diesel1990

    Diesel1990 Active Member

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    Economies of scale/Business models? Don't know. Hope you enjoy living there it's not a bad little town.
     
  20. Bee-mumma

    Bee-mumma Well-Known Member

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    It's an interesting market at the moment.
    We try to obtain cash positive properties, in regional Vic.
    Currently we are due to go unconditional any day now on our third IP in this area this year.