NSW/VIC Regionals < $150k

Discussion in 'Where to Buy' started by B-Mac, 30th Apr, 2017.

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  1. SOULFLY3

    SOULFLY3 Well-Known Member

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    I purchased around when Nathan Birch was taking off, thinking I could emulate a little.
    I would have bought a heap more in the area in hindsight (wish I didnt buy 2 in Eliz at same time) but now as time has progressed so has my strategy, from development to now O/S.
    I am building my capital for the time being unfortunately the cash flow was not huge with these properties, maybe 4-6k per year after tax etc and the headaches with tenants was doing my nut in!
    BUT 5 years ago it was perfect.
     
  2. Liarliar

    Liarliar Well-Known Member

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    Ashmont in Wagga Wagga has gone up in price actually .

    Is it still hard to find tenants there ?

    Muswellbrook has gone up in price despite no jobs there.
     
  3. Gonx

    Gonx Well-Known Member

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    you mean no legal jobs, they must be making money some how :)
     
  4. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    I'm all for cheapies (currently doing a client deal at $250k) but please please watch your vacancy rates in some of these towns people. Wagga Wagga (which I like overall great town) currently at 4.1% and Albury (which I like even more than WW) at 3.7% means think twice the timing is off imo.
     
  5. Coastal

    Coastal Well-Known Member

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    Taree had some sweet sweet deals in 2013.
     
    SOULFLY3 likes this.
  6. TMNT

    TMNT Well-Known Member

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    Can I have some of what you are smoking!!!! :)
     
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  7. Bayview

    Bayview Well-Known Member

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    From my experience; there is cheap, and there is good value....cheaper regional areas might be very dangerous...it may be far safer and better long term to spend more, but get better value in a "closer in" area.
     
  8. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Be wary of acquiring anything for which the rent is not at least $180 per week. Irrespective of the dwelling size and amount of rent, you will have to provide and maintain expensive items such as an oven, hotplates, kitchen sink, toilet, shower/bath, hot water service, tv antenna. Even a cheap oven can wipe out 4 weeks of rent when it goes if you're only getting say $150 per week in rent. A hot water service can wipe out 6weeks+ of rent. And so on. You get the idea. Be careful of buying something with too low a rent by being blinded by a high yield equation, as you could spend most or all your rent constantly maintaining the facilities.
     
    Kevvy7, tobe, Gonx and 8 others like this.
  9. SOULFLY3

    SOULFLY3 Well-Known Member

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    My mates joint in ashmont has been online for 4-6 months no interest
    Not much growth in the 4 years either
     
    TMNT likes this.
  10. Biz

    Biz Well-Known Member

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    Bingo!

    That's the problem with all these high yield places. The rent is low in dollars regardless of the yield percentage. By the time you deduct rates, insurance and maintenance the net yield is terrible.

    Another problem is if you intend to hold long term get ready for a cage fight when it comes time to renovate. Very hard to do in these areas. Limited supply of products and tradies.
     
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  11. mja

    mja Well-Known Member

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    For a mostly yield play, go to Wellington, but I'm biased (I have a few there), though I'm backed by the numbers.

    My last purchase there has a 13.6% yield with a cash on cash return of 39.4%. Stay away from Walker Cres and in and around Elizabeth St. The closer to the middle of town generally the better.

    I've never had any tenant dramas and have pushed yield further through renovations.
     
    pjames likes this.
  12. TMNT

    TMNT Well-Known Member

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    I have a prop that's yielding 12% off the bat.
    And I would gladly sell it in a heart best.

    It's not all about the yield.

    I've learnt it the semi hard way
     
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  13. Yson

    Yson Well-Known Member

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    What's the post code as there are few areas with same name
     
  14. Hwangers

    Hwangers Well-Known Member

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    do you still have these? I've read your experiences earlier (thanks for sharing) would you do it again?
     
  15. TMNT

    TMNT Well-Known Member

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    I haven't sold them because I've been too busy. However would I do it again.
    No.
    If the properties boomed over the next couple of years. Then I would change my answer to yeah probably
     
  16. mja

    mja Well-Known Member

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    NSW = 2820.
     
  17. samiam

    samiam Well-Known Member

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    I am kind of interested in regional towns along inland rail line - but for quick in and out in 5 years. it should be a mini boom for those towns especially new section being built around.... thoughts?
     
  18. tommo c

    tommo c Well-Known Member

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    IMHO I'm not sure you're going to see enough infrastructure being built in the next 5years for there to be a significant amount of capital growth in a regional area to outweigh your in and out costs.

    Which particular areas are you talking about?
     
  19. samiam

    samiam Well-Known Member

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    dubbo, parkes and around. dubbo is not that cheap anymore
     
  20. larrylarry

    larrylarry Well-Known Member

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    there's a lot more supply in Albury and I was warned by one of the agents on the ground. Prices have grown in those better properties.
     

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