Regional Property

I think 6% and upwards in the Central West but not necessarily a solid 7% like it was a few years ago. Unless you buy very well and renovate - which is certainly possible.

 

South of Wollongong is a great area to watch. Still some great buys down there and amazing returns.

Growth is no doubt not far behind.

 

Thanks @Wattledo for your feedback. I have relatives that moved from out bush into parkes so makes sense about Parkes.

 

12% with with 30% CG gain in 7 years, in a town that some ignorant know all Handy Andy I think scoofed at when I bought it, on sommersoft, and the 7.30 report sald would become a ghost town because it would never rain again and the river would run dry, after which there where floods.

 

Where's this?

 

Yep, country towns can be ok too.

 

Yep, some places about to go kaboom:

 

Mildura

 

Don't get me started with some of the planning issues, i'd be very wary of buying new house and land packages in the new estates. There are some two tier markets happening for out of town purchasers, and get some local advice about what new areas are better then others. There is a bit is sprawl going on, but the drive to the nearest shops is no more then 5 mins. Part of councils aim is to give new house builders choice in what part of town they can build, this has resulted in some piece meal development but it will fill in over then next couple of years. If you actually look closely at how the land is developed it is generally based on boundaries of the existing larger properties, there are master plans in place to allow for continuity of development.

 

Yields will vary from town to town and over time, there are good some yields coming out of Forbes, Parkes and Oberon. These Forbes and Oberon have also seen some good capital growth. There some better areas then others, and some helpful local agents. I just pick up a good duplex in Forbes, positive cash flow and potential to subdivide in about 12 months, being under 10 years old some the depreciation benefits still apply. But do your research as a couple of streets or blocks in the wrong direction can make all the difference.

 

stick to quality and you will always have a tenant. Orange and Bathurst may have higher vacancy rates, but there are sectors of the markets with waiting lists or the tenants are pushed into other housing stock. There are two tier markets operating in Orange and Cowra which are impacting on rental stock volumes. If you are unsure get some unbiased professional advice

 

Do your research there are some pockets that are running behind the neighbouring suburbs, a few little gems down that way.

 

Rates Rates Rates are expensive... Moree NSW over 2k a year for Rates !!!
Are all Country towns rates high ???

Have to take that into consideration when renting... High rates, low rental return.

That said I do like towns such as BARMEDMAN, TEMORA, WEST WYALONG

 

Barmedman...population c. 220 people...

 

Yep, rates are expensive compared to the city. My Orange properties have nearly doubled in value in 8 years and my yields are 11% on purchase price. Trashmont has only moved 30-40K in that time but I'm getting just over 10% yield on that one.

 

Yep, council rates of $2,000 and water rates about 700, are normal. I allow 3k for rates or 60/week, or about 1% for calculating returns, which allows a little extra for minor maintenence

 

It can be a trap, rates going up faster than rent

 

that's why Net Rents are the only qualifier. It doesn't matter how high or low the outgoings are if the rent is covering and giving you the return you want. I am still amazed about how many people quote gross rents. yes they are a rough guide to start looking in areas of good net yields, but always compare Net Rents for investments. Investment 1.01.

 

10,000 and under is a bit small.

 

hang with it beachgurl, i think Orange and similar places are set to close the gap with Sydney in next couple of years. Once Sydney settles and people start to realize that you can pay ave $611,000 to live in Blacktown or ave $342,000 to live in the cultural hub of Orange. The numbers are too far apart. Its almost a repeat of the market conditions from the early 2000's.