NSW NSW Yield Hunt - Condobolin, Griffith, Jindabyne

I'm trying to find some places that offer good yield in NSW and noticed that Condobolin, Griffith and Jindabyne seem to offer some good yields at least from the raw stats on realestate.com. I'm sure that there are reasons behind this.

For example i noticed that Condobolin's population is shrinking, however couldn't quite figure out the reasons for good yields in the other regional towns mentioned above.

Does anyone have any insight or opinions on these?

 

To be blunt, those are three of the last places I would consider investing.

There are approximately zero growth drivers present in those towns and high risks of LONG periods of vacancy.

Perhaps if you're seeking strong yields with a higher prospect of capital growth it's worth looking interstate.

The Logan council area in QLD, for example.

 

Condo comes and goes. At the moment it's going - gold mines are moving further away. Not many decent tenants to choose from. Nice place to visit ...

 

Griffith - Decent Yield ( i was at a auction 3 month ago for a Block of 9...didn't sell i was close...it's still for sale with a yield of ~9-10%!) ...the only issues with Griffith is lack of CG due to the council imposing a 2% levy on all renovation and development over $10,000 , or something along that line - Just look at the sale contract in the Section S 149...this "development" levy Killed the market! + there's a super water Levy in place due to lack of water supply.

Great place for Yield + Large population and diverse trades...but be-careful on the CG ( I won't buy in this area unless you have 2 decent CG property under your belt already)

Note: One of the largest "tenant" in this area is the manger of the common Chicken farm for Steggles- He literally has over 200+ properties under his name as a "tenant" - he just sub rents back to his workers.


Jindabyne - A bit better as it's close to ACT and Sydney...but the area attracts holiday and short term tenants rather than stable long term tenants. Buy closer to town rather than the outskirt.

Older houses and unit tend to drive a better Yield and CG.

 

Be really careful buying in small regional areas, don't just look at the yield.

 

Well, as I've read in the API mags long time ago, buying a challet in Jindabyne is not a good decision due to the seasonal demand only from the tourism.

 

Just make sure you have a plan and strategy to get to your goals via the plan for your situation, otherwise these buys may end up being useless. Too often ppl buy places with no real sold rationale for how it is going to get them closer to their goals. Remember, its only a small percentage of property investors who end up building a large enough portfolio to build wealth. I believe 1 of the main reasons for this is because ppl buy the wrong properties in wrong locations.

 

Holy moley, i'm glad i asked the question before i started to look too much closer into this. I agree that yield isn't the only thing that you should look at but for me my goals are to maintain a cash positive portfolio, which means i'll opt for locations with a yield that doesn't impact cashflow significantly or have a plan to improve cashflow on existing properties (ie. GF addition or subdivide).

However in the search for yields i noticed these towns and wanted to get some opinions as why the yields are very good, and it appears that there are many negative reasons why this is the case.

 

Those areas are so different my eyes water! Don't use the stats on Re.com alone. The Jindabyne numbers are skewed because the yields are measuring off adds from snow trip short term premium accommodation adds (ie not long term rentals) each of the 3 may actually be worthwhile if you can stomach the risk but you really need to understand a small town well to know why you are buying there.

 

It's nice to see this. It shows how valuable discussing your ideas with others is and getting feedback and taking in on board.

Stay active here and you will pick up so much.

 

FYI (I will post this in introductions too) I think I am going to use my name rather than knightm on this forum. Not 100% sure, but that is how I feel this 5 minutes . Oh SS how could you leave me???

 

May as well. Somehow, everything seems less anonymous here.

 

Have a look at towns with a couple of major industries eg: agricultural, educational, regional hospital, government offices or armed forces as you won't find that all 3 fail in a short period and they all draw on alot of additional services.

 

Yeah - having said Condo no, I would recommend having a look at nearby Parkes. New hospital;council chambers; canola,wheat, sheep and cattle; transport hub, new roads. It seems to be sizing itself up for growth. Yields are 5%-6%+ and then you look for a good deal.
There are probably lots of other decent towns around too. The yields fluctuate. The regionals are taking the back seat at the moment though - with mining decreased and capital cities the focus.