NSW Parkes NSW

Hi Fellow investors,
What is your thoughts on parkes NSW where we can get a cheaper property with with good rental returns..
I am currently looking for +ve cashflow properties and started looking on the regional areas.

 

Hi Malai,

What leads you to believe that Parkes would give you good rental returns. A quick glance shows that average property to buy is 250k to 300k. Average rentals on same properties are 240 to 280 per week. There has been very little growth since last 10 years.
so here are my 2 cents:

1. 374 properties to sell.
2. 37 properties for rent.
3. Rental yield hardly 5%.
4. No to very little growth since last 10 years.

With 15k population, I do not think as an investor, I would ever enter such a market. What you are trying to achieve is achievable with flying numbers and excellent growth in capital cities. Kindly read a lot of forum posts on following members for start:

sash, cactus, melbournian, see change, dave3214 and following these members, you will find more of fello members who are targeting growing markets at the lower end and have plethora of knowledge. Reading their posts and understanding strategies is the key. I hope you find what you are looking for but it would only come by reading, reading and reading.


Regards

 

Out there, I think you'll make more money being an Elvis impersonator.

 

Only with a hunk a hunk of burning cash.

 

And a double cheese burger.

 

Deep fried, of course.

 

Yes, good thinking. I lived there for 5 years and have a nice little house there. It's a great place to live and doesn't take long to find a good solid house well under median price in a good street. I've got my eye on another one at the moment.
True, demand is not overwhelming at the moment, but when demand is there prices double and more. It last happened about 11 years ago. Yield is always good. Usually around 7% or more. If you have the time and elbow grease, get something that needs a paint job and spruce it up a bit. Doesn't take m uch to increase value. Well worth it. I say go for it!
As mentioned above, there is quite a bit of tourism during summer. And the inland rail will ensure a strong future.

 

Hi Ashish,
Thanks for the detailed response. I was having doubt why the price is bit cheaper and did bit of analysis. Agriculture is the only market and no mines around and hence so many properties are for sale.

My interest is to get some +ve cashflow properties..

Regards
Velli

 

Rubbish, there are mines all over the place.
There is copper and gold mining, canola, wheat, sheep, beef, and it's already a transport hub even before the inland rail has begun. Parkes sits equidistant between Melbourne and Brisbane and is a major stop on the way to Adelaide and WA. There are 3 trucks a minute passing through.
There is a solar farm and a satellite dish because the skies are so clear and vast.
Parkes is mentioned in a few threads here. I'm thinking research is not a strong point?
Not only do you need to do DD on possible places of purchase, you need to make sure that who you listen to has more than a derisory interest in the area they're talking about. Try to get the right info for starters.
Also, the famous BA's mentioned here are buying up there.

 

Hi
Thank you very much for the details you provided. Let me do some more DD on this town and will update the forum.

Regards
Velli

 

You mean infamous BA...if they are encouraging people buying there......doing their dough......why would anyone in this age of harder lending want to do this...

 

I was at Parkes for a brief vacation a couple of months ago. It's got nice place, people and food. However quite a different story if you want to make money off investing there considering other opportunities out there. Happy for the infra to go in but I wouldn't hold my breath until the population increased quite a bit.

 

We'll if your strategy is buy and hold only and you buy in Parkes and someone else buys a comparable in Logan, for example, who's to know which investor will come off better taking ALL costs into account? The fact is money can be made or lost in all markets. Depends on what you buy and what you actively do. Too simplistic an argument otherwise.

 

Staying a few nights is a good start but there's more to research than this. Most poters are completely ignoring OP's strategy which is clearly to obtain a cashcow. Someone buying there now has the potential to make money at time of purchase and within first few months if they are able to twirl a paintbrush.
Unfortuanelty for OP, some of the posts on this thread are not motivated by goodwill towards the OP but by disrespect towards me. Which, it seems, is ok by the mods .... because it's a 'balanced argument' or some such reason ??? Though it also disrespects OP and the rest of the forum as it just promotes ignorance and a useless waste of time reading ill-informed posts which come from a dark, confusing and confused space.
Looking like a club mentality here. I know a few who own in the area. One wants in with the club so don't have the balls to state his claim. What a pity to miss out on opportunities for real knowledge.

 

What did the value of your house come to post renovation if you wouldn't mind sharing? I recall you were renovating a house in a decent part of town

 

@WattleIdo how are the council to deal with in regards to subdivision in Parkes?

 

You dont go too inland regional to split blocks.

Who is the famous BA and who the heck invited them to your backyard @WattleIdo ?

 

Fair Call, found 5000m2 for 80k a while ago in Parkes, didn't look into it as I wasn't in a position to buy at the time.

 

Still not there yet! Still going! Have been working full-time in Wagga. Great job. High quality problem.
But promise to post numbers when it's all done (yes, including holding costs). Hopefully get the bathroom done in the next couple of months, paint another room and then get some tenants in and a revalue.
Did you end up buying anything?

 

I would love to be able to help you out with this question but honestly, I wouldn't know. I can say that when it comes to Parkes Council, the quality of customer service is very dependent on who you talk to. Some are great and some are incompetent or just plain bitchy. If at first you don't succeed, try, try, try again.
Put it this way, I've never heard anything good.
On the other hand, the Mayor and the Council are responsible for building a new hospital, planning and building by-passes, resurfacing most of the roads all around Parkes, glamorising the beautiful park, new cricket pitches and skateboard ramps, new water treatment and sewage treatment plants, negotiating for the new inland rail, etc.
So there's potential if you can find tge right person.
If you're looking at land, Parkesborough would probably be the area to investigate.