NSW Tamworth, Albury IP around $320k

Discussion in 'Where to Buy' started by sham.v007, 26th Feb, 2017.

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  1. sham.v007

    sham.v007 Active Member

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    Hi, Can you suggest if Tamworth or Albury is a good investment around $320k either neutral or positively geared? Thank you.
     
  2. Tony Fleming

    Tony Fleming Well-Known Member

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    Hi @sham.v007 haven't looked at tamworth in years but I invest heavily in Albury. Depends on your strategy but positive cash flow is easy to get. For that price even less around the $270k mark you are looking at good sized blocks,3-4 bedrooms, brick, good location and decent condition.

    Biggest drawback is vacancies. This time of year I would only be buying with a steady tenant in place. I'd avoid West Albury as it has a high housing commission ratio. Springdale heights is similar to West Albury but it seems to be getting better and the houses are newer and yields reflect that.

    Any questions don't hesitate to ask.
     
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  3. Wanttoretire

    Wanttoretire Well-Known Member

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    Hi tony,
    What is your opinion on buying blocks of units in albury...what to look out for? Problems? Need some positive cash flow.
     
  4. Tony Fleming

    Tony Fleming Well-Known Member

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    They can provide strong cashflow but just remember you have more hot water systems, kitchens, aircons etc to worry about so an extra 3 or 4 grand per annum in cashflow can disappear quickly. So i would be targetting more updated properties. Plus they will rent quicker and attract better tenants.

    Not that there is that many unit blocks in west albury but I would avoid buying there as high housing commission and quality of tenants is an issue. Everywhere else is fine minus a few patches in springdale and glenroy.

    Tenant demographics is a lot of young and elderly tenants. Elderly tenants like to be close to the shops so north albury, east albury, lavington. Younger tenants like to rent in the new estates in Thurgoona.

    Are you looking to buy hold and strata and sell eventually?

    Happy to send you some data reports, answer any questions and send some agent contact details to get a feel for the area it you would like? Hope this helps.
     
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  5. tommo c

    tommo c Well-Known Member

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    Hi Tony,

    What would be your thoughts on a block of units in South Albury?

    When i lived there there was constant hype about South Albury being the next big thing, but i don't think there has been much action going on, as long as there is ample supply of H&L packages on both sides of the border.

    I did however see recently a block of 4 x 1 bedroom units (all tenanted) sell for $345,000 with an annual rental of almost $40,000 - wish i had of come across that one when it was advertised!
     
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  6. Tony Fleming

    Tony Fleming Well-Known Member

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    I like the idea of unit blocks in South Albury just not 4x1 bed units. You are just limiting your tenant pool too much. If the tenant demographics allowed for it I would consider it but for an extra $10 or $15 you can get a two bedroom unit.

    I think I know the block you are talking about. Is it the one with on street parking in Kiewa?

    The data is a bit skewered as it is only three months into the year but the area is having some strong growth with North Albury/Albury leading the charge. South Albury is lagging behind which is surprising considering its proximity to Dean Street etc

    If you are seriously considering blocks of units I would look at Lavington. There are a number of small 3 x 2 bedroom blocks on large blocks of land close to Lavington Square, Lavington PS and Murray High. Stronger yields and more opportunity to add value.
     
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  7. tommo c

    tommo c Well-Known Member

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    I think the block might have been on Kiewa street, yep!

    South Albury is so close to Dean street, I still believe it has the largest upside (if there was less new supply coming on to the market in the area)

    I do like Lavington, and it has definitely improved from it's other known title stabbington in the last couple of years. And a lot more people tend to rent there as opposed to buying due to their demographic status (very large generalisation) so vacancy can tend to be a bit better than other areas.
     
  8. Tony Fleming

    Tony Fleming Well-Known Member

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    It's an odd town as the young couples prefer to live away from the CBD at the moment (new trend seems to be Thurgoona new estates) and the older renters like to be right in the centre of the town.

    A lot of my tenants in Lavington seem to be elderly, divorcees or university students so I think having Lavington Square and the pubs close by helps.

    I know Albury/Wodonga was supposed to be taking in some of the 12,000 Syrian Refugees as well as a few other regional towns. Dropping another 1000 or so people in a town with 2.9% vacancy rate will certainly help that aspect.
     
  9. tommo c

    tommo c Well-Known Member

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    I think the young couples get drawn in by the 'new house, or new house feel' either buying or renting. Plus being a country town, driving everywhere is acceptable as public transport is almost laughed at. For my first 4 years of studying/working, I drove 30/45mins to work/uni everyday

    Your point re: Lavington, especially the elderly is very interesting. These types of tenants generally tend to be very long term tenants. And we all know with less changing of tenants = less money paid to agents to re-lease!
     
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  10. yorkie

    yorkie Well-Known Member

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    sunshine coast
    Hi Tommy and Tony,
    I have 3 units with 2 beds completely Reno,d off street triple carport and additional parking in south Albury pm me if interested any further.
    Thanks. Yorkie
     
  11. yorkie

    yorkie Well-Known Member

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    Hi tommo,and tony
    Yep i bought the whole block of 3 units and then did all the necessary works to comply with strata titled. All fireproof walls etc and seperate water . Also installed 3 new aircon split systems. Originally had 3 poxy little ones just to look good and make noise and all died with in a year or 2.
    Looking at $ 165k + each.
    Currently rented for $180 per week.
    And probably due for increase.
    Never had any problems getting tenants. Very quiet part of south Albury. And very close to Dean Street.
    209 Kiewa St. If you Google there will be pics etc.
    Let me know if i can assist any further.

    The banks do normal loans upto 3 units and then it's commercial 4 units and more.
    Ta Wayne