Threads on regional investment

Discussion in 'Where to Buy' started by luce.rocks, 3rd Nov, 2015.

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  1. HUGH72

    HUGH72 Well-Known Member

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    Smq has the vacancy rate for 2800 at 2.5% which is fine. It appears to have come down over the last year. Early 2014 it took me about 4 weeks to find a suitable new tenant, at the time the vacancy rate was higher. Discussions with my pm who has a decent size rental roll led me to believe that the rental market has been fairly soft for some time, it may have improved recently.
    A few years ago Orange had a mini boom with rents spiking along with prices. I put the rent up $35 pw in one year which doesn't sound much but for a cheap house in a regional centre it was a substantial increase. The boom was created by the expansion of the Cadia mine and other developments. I think there may have been a major hospital expansion at the time.
    The market has been affected from over building and increase supply from house and land packages and executive rentals etc. Some or most of this may have been absorbed? I haven't followed closely for a few years so maybe a local could provide better information. I only intended buying one there as its only a fairly small centre, in fact I wouldn't buy anywhere with a smaller population as they can be too volitile. It has had some CG and the yield is good.
    The economy from my research and memory is based around agriculture, mining,tourism, health, education and a little manufacturing. The Electrolux factory I think is closing in 2017?
    Lack of water supply has been a problem.
    Hugh
     
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  2. beachgurl

    beachgurl Well-Known Member

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    I have a delightful tenant who's been on payment plans for too long and was told by the lovely people at nsw housing not to pay back the debt when it got to 1k as it will cause her budgetary stress. So now she's stopped paying rent altogether. It's taken 3 weeks for the tribunal to set a date for the hearing, which is another 4 weeks away. Conveniently timed a few weeks from Christmas which means the sheriff office will give her Christmas compassion and not turf her out til mid January.

    Rents are good in the lower demographic if you can get them. My other place there has close to 11pc yield for what I paid for it, which is the same yield I should be getting on the above house.
     
  3. euro73

    euro73 Well-Known Member Business Member

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    The beautiful Hills District, Sydney Australia
    1 bedders - 65-70M2 internal + garage + courtyard. Sold these for @ 260K . They yield 9-10K CF+ with NRAS 06102015 - 1.jpg
    06102015 - 3.jpg 17082015 - 1.jpg 17082015 - 4.jpg 17082015 - 6.jpg WIN_20151022_115004.JPG WIN_20151022_115055.JPG
     
  4. HUGH72

    HUGH72 Well-Known Member

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    Maybe the lovely person at NSW Housing can pay your shortfall and mortgage, what a joke.
    I have found in regional NSW pms in my limited experience are slack with arrears.
    One or two weeks without a breach notice seems common. If it was a property in a capital city they would be all over it.
     
  5. euro73

    euro73 Well-Known Member Business Member

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    Location:
    The beautiful Hills District, Sydney Australia
    4 bed, 2 bath, 2 garage houses. on @ 700M2 blocks ..sold 8 of these recently @ 390-400K
    . They yield @ 8-9K CF+ after NRAS.

    I will be doing this same floor plan with an additional rear single garage+ granny flat combo / dual occupancy next year, after NRAS is finished - for @ 450-460K, and they should generate pretty great yields. Next best thing after NRAS. I expect yields of @ 7-8K after tax.... which will still be very handy in paying down debt fast. Any time you can get a quality dual occ under 500K, the numbers should be pretty great.



    Lot 44 Grace.jpg
     
    Last edited: 6th Nov, 2015
  6. euro73

    euro73 Well-Known Member Business Member

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  7. euro73

    euro73 Well-Known Member Business Member

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    The beautiful Hills District, Sydney Australia
    30 townhouse development under construction now... 19 NRAS within the development. 20082015 - 5.jpg WIN_20151022_113147.JPG WIN_20151022_113150.JPG WIN_20151022_113203.JPG
     

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  8. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Fantastic work @euro73 ! Loving those townhouses.
     
  9. euro73

    euro73 Well-Known Member Business Member

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    Would your clients like to buy them, Matt? :)
     
  10. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Got many NRAS left?
     
  11. euro73

    euro73 Well-Known Member Business Member

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    You would need to PM me Matt...the moderators are watching :)
     
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  12. euro73

    euro73 Well-Known Member Business Member

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    Updated progress on Orange
    IMG_0331.JPG
     
  13. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  14. Mr RD

    Mr RD Member

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    Orange is good solid town, it forms part of the Evocities group, which all offer a good diverse economic base and long term capital growth and yields that vary depending on timing. Cecil road is a reasonable area, housing stock is getting older, but if you look hard enough you will find something suitable. Good Luck
     
  15. Mr RD

    Mr RD Member

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    There are areas as an investor i would not buy, yes the yields are good, but there are better options, Streets around Algona Cres open you up to potential risks
     
  16. Mr RD

    Mr RD Member

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    Orange has a pretty broad economic base, there has been huge government and university investment in health with is attracting more private health investment, the tourism trade is booming on the back of wine and food, agriculture is still there but very much as side event, the mine is going strong with 40 year life span.
     
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  17. Mr RD

    Mr RD Member

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    If the history repeats itself, the regional areas will need to show good capital growth over the next couple of years. The markets have been sluggish in realtion to Sydney, but now the price divide is too great. With Sydney Median price at say $1million, regional centers are very affordable. The lifestyle and affordability of regional areas will soon be on everyones radar. it will be 2003 all over again.
     
  18. luce.rocks

    luce.rocks Well-Known Member

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    That would be nice :)
     
  19. euro73

    euro73 Well-Known Member Business Member

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    Only two still available Matt