So I live a work in a rural area about an hour from a major regional centre. I have a stable well paying job in the area. I have found a house I like but there is a bit of a catch. The council sold off some land to a developer about 5 years ago. They sold house and land packages to investors who purchased all of these about 23 in total, 4bedroom, 2 bathroom, 2 garage houses. They were property managed from a different state and didn't really screen the tenents and turned into into a crap hole. So 2 years ago the property management was transferred to a local company who have removed most of those tenents. There is no doubt that the people who bought these made a bad investment choice, but they are easy to rent out. They paid around $390000 and rent are about $340. Now there is one selling for $330000 (could offer less) that is less than 2 years old on 800m2 block. So they are selling at a loss but is has a bit of a bad reputation in town. I know capital gain not going to be huge due to the area but I could rent it out if I leave. I know the information is a little vague but any comments would be helpful thank you!
What is it you're seeking advice on? If it has a bad reputation in town, do you think people would rent there? Why/why not?
If this is the case what would be the aim in buying the property? The rent wouldn't cover the loan and there would be a loss of a few thousand each year in income.
Mostly because I'm currently renting and would live there for the next year. Just worried if I leave in a year am I going to have a bad investment. Other option is to just keep renting and buy at the next place I decide to live.
Use any deposit to buy something in an area with better potential and continue to rent in your current location.
Why so sensible! Fair enough, I have money burning a hole in my pocket. Nothing wrong with growing savings.
You can put lipstick on a pig... but it’s still a pig. The idea of property investing is to make a profit. Not lose money. Suggest you find something which will achieve that. Blacky
Why would u spend 330k to make less than 330 weekly rent and the CG is going down ? Regional areas i like are Wellington , Wagga /Tolland,Dubbo , Orange, Bathurst
I actually know those towns very well! Can't say I think any of them are good investments. Wellington no way! Orange is nice I have family there but the market I flooded with new build and investors buying rentals. Dubbo is also nice but has already increased in price, don't know how much more it will increase. This town at least has an undersupppy of rentals so I thought long term i will always have renters. But like other rural areas also like the ones you mentioned they often don't have large capital gains. But i am defiantly listening to people I haven't put any offers in yet, will chill and do some more research!
Wellington has the new prison being built and getting bigger . I did hear that Long Bay will eventually close and Wellington will take over. Mid last year i could not get a night vacancy in any Wellington motels !!! They were all booked with builders , prison staff etc etc We had to travel back to Orange to get a nights motel to sleep I believe Wello will become a big town eventually especialky if the jail keeps expanding and the land in Sydney is sold off and Wello jail replaces it. Wagga Wagga still has low priced ip's fir good rental returns
Do you have any rentals there? The prison is the only thing they have. Yes people may use it as a stop over because it's a truck route but rental is completely different. Rough tenants, high drug problems, lots cheap housing, mostly welfare, far away medical services for elderly. Not something That strikes me as a great investment.
Not true. I have 10 rentals there. Never had a serious tenant issue and vacancy in between tenancies is pretty low. The prison employs a few people, they are building a new wind farm and the solar farm is due to start soon. Plus all the service industry, and people who work in Dubbo but live in Wellington (45 minute bus ride) because it's cheaper. There are two 'bad' areas of town (around Elizabeth St and Walker Crescent) , but everywhere else is completely fine. The closer you can be to the middle of town the better. Of course there's bad tenants and people who are exclusively on welfare. Every regional town has drug problems. Saying all that, it still is fairly niche and you need to have a great team on the ground and buy the right property and pay the right price and have the right strategy to fit your goals.
Wow what a selling point. A town full of prisoners and wardens. And all the skanks that visit their loved ones all filling up the local caravan park. The local dealers gonna do well. And the tattoo parlour
