Vacancy Rates and Location Picks - Post em up

Discussion in 'Where to Buy' started by BuyersAgent, 1st Aug, 2019.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
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    Posts:
    1,401
    Location:
    Oz
    I know there are many ways to skin a cat, and many metrics to include as you decide on where to buy. As always the metrics you give the most weight to will depend on your personal goals. One of the many metrics I think important for most investors is the vacancy rate. In fact I think I talk to more investors who regret buying a previous property in the WRONG location because of ignoring this metric than possibly any other.

    (for beginners high vacancy rate means more rental properties than tenants, being forced to drop rents to keep a tenant, longer vacant periods in between tenants, paying your mortgage on your own, not much fun...)

    Anyway being "low" or "tight" in vacancies is the opposite of that nightmare above, which means low vacancy is a good thing for landlords. Under 2% is generally regarded as good. 1% is more good. The closer to zero the better.

    I wrote a blog post on it HERE with 20 areas mentioned but I thought I would put up 10 areas under 2% in NSW that could be worth a look on the basis of the vacancy rate check (please check lots of other things too folks).

    How about you post up a low vacancy rate area you like and a one-sentence summary about why you think it is worth considering??? No need to keep it to just NSW, anywhere as long as it is under 2% vacancy.

    Yass 0.3%

    Thriving beef/sheep region and lately considered a viable rural commute option for Canberra workers.


    Cooma 0.6%

    Affordable, Distant commute option for Canberra workers, Snowy Hydro 2.0 project is bringing some high grade tenants into town.


    Kurri Kurri 0.8%

    Close to new Mainland Hospital, affordable older homes with larger blocks & close to Newcastle for work.


    Tweed Heads 0.9%

    Ideal Retirement climate, growing international airport, large new regional hospital, perennial tourism and surf/beach industry.


    Coffs Harbour 1.1%

    Ideal retirement climate, regional airport, quality beaches.


    Unanderra 1.1%

    Express trains viable commute option to Sydney, close to Wollongong University, it is the first affordable option heading south in Wgong compared to the northern suburbs which are more expensive


    Banora Point 1.1%

    Ideal retirement climate, new hospital (as per Tweed) affordable compared to Byron Bay.


    Queanbeyan 1.2%

    Affordable housing next to Canberra, comparably investor friendly rules (ie freehold land ownership, less onerous land tax rules)


    Dubbo 1.2%

    Major Central NSW regional hub, university, hospital expansion, agricultural and mechanical repair centre.


    Goulburn 1.3%

    Canberra commute option on the Sydney side, correctional centre.
     
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  2. Timb89

    Timb89 Well-Known Member

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    24th Jan, 2019
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    Location:
    Sydney
    Tweed Heads/Banora Point is an outstanding area. Perfectly suited for retirement. Proximity to Coolangatta airport always surprises me.
     
  3. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,125
    Location:
    The beautiful Hills District, Sydney Australia
    I'm delivering some NRAS approved townhouses and Dual occ's in Goulburn right now. Was in Goulburn all day yesterday. Met with 3 local agents/tenancy managers - they told me there is an acute shortage and rents are surging. All the pubs/hotels are close to capacity because there's such a shortage of accommodation. Giddiup! We thought we might get $480 per week for our 4 bedroom houses and $240-250 per week for our Dual Occ Granny Flats. The 3 groups I met yesterday all told me to expect at least $350 per week for the granny flats..... that's going to add @ 5K of additional cash flow to what were already expected to be very strong cash cows... These are shaping up to be in the 13-14K CF+ range if the granny flats achieve the numbers that local agents are predicting .... rather than the "measly" , almost disappointing 8-9K CF+ after tax if my more modest estimates turn out to be accurate. serious First World Problems I guess, when 8 - 9K of after tax cash flow from a resi property seems disappointing :)

    #cashcowsrule
    #theoriginaldebtreductiongladiator
     
    Last edited: 2nd Aug, 2019
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  4. wilso8948

    wilso8948 Well-Known Member

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    23rd Jan, 2018
    Posts:
    565
    Location:
    NSW/QLD
    I'm in Mackay. Everyday there is an article in the local paper about the shortage or rentals. Wife is affiliated with the largest real estate business here and can confirm. Sucks for us as we rentvest. Only just starting to filter over to sales. New estates starting to advertise and turn soil once again.