NSW Wellington

I'd be careful with this one. Are they paying their rents?

 

Sounds like fun. I think I might pack the skiing gear and head up there for the weekend!!

 

Funny thing is house prices there are on the rise though, i guess its near Dubbo.

 

I have two properties in Wellington and looking to buy more. The ACA story is rubbish. It certainly has a drug problem, but the townsfolk are actually trying to do something about it. My suggestion is to drive there and spend a day or so doing on the ground research and get a feel for the area.

Tenant selection can be very variable; I've had my house vacant for 9 weeks at the worst point because you want your property manager to be very picky on who they put forward as a potential tenant. Otherwise, in the last 5 years I've had virtually no problems.

I've got 95% lends on both of my properties, so finance isn't an issue, depending on your lender. St George won't do Wellington for SMSF.

Rents are up because of the demand from Dubbo, a number of tenants live in Wellington but work in Dubbo as it's $50/week cheaper.

 

Recently saw online a 2 level commercial/residential for about 280K with 30K pa rental. In.the main street.

Owner wants lease back for the residential part. Remember it does flood there.

 

Little do they realise is that they'll blow more than $50/week in fuel, wear and tear etc on their cars.

 

Penny saved, pound wasted.

 

Well 6 months on from my first thread prices seem to have risen in this area but I doubt they are selling fast.
Houses seem to take months to sell.

Anyone live in this town? Or own an IP ?anyone looked at Wellington ?
I see they have been renamed little Antartica because of the "ice" sales in this town.

I dont know i seem to have this emotive thing drawing me to Wellington lately and I havent been there yet, was planning to go but just wasnt up to the 5 hour drive.
Maybe I had some long lost ancestors from there calling me up

Population about 4,500
30-40 minutes to major town Dubbo, population 36,000

Prices are not that cheap though with most houses in the mid 200's except those in the apparent housing Dept areas.

Rent stock seems to be high.

Positives for this town are the additions to the prison.Wellington jail

You would think that staff at the prison would want to rent nearby ?

They have a hospital in Wellington., with casualty.
Police Station but only daytime hours, Police have to cme from Dubbo after hours.
Negatives are the low socio economic area and crime drugs etc
However Im not sure why its overpriced ?

This old 1 bedroom advertised on Domain for $96,000 with rent potential of $120 a week.
So i guess they're selling otherwise but whose buying?
Anyone live there or close by ?

 

True Scott - most people forget that - but the numbers are such that enough people do actually commute due to much higher rents in Dubbo. A few yrs ago it was real you could just look at the lines of tail lights at 6pm heading out of Dubbo. Not sure now its been a while since I spent much time there.

No recent involvement with the town Dubbo is sooooo much more stable and safe you would be taking a big risk unless you already own a lot of regional property. If you are keen probably wait until the vacancy falls and ice problem is sorted, then it could have a proper upswing. Narromine is another commuter option out of Dubbo and a little closer. Lower vacancy too. The ice issue must have hit home the vacancies were almost zero a while back and have been climbing. Not a good sign.

If you remain interested go hang out there for a week, see what it feels like during and after hours. To make the numbers work here you need to go, see all those sub 100k renovators, make cheeky offers on lots of them, get something WELL under 100k (like 65-85k) and spend 10k making it pretty (also hard work to do cheaply) and get high 100's to 200 rent for around 10-12% yeild. Otherwise not worth it imo.

As others have said I would consider quality over quantity (even in the regional cheapy category there are FAR better options) and spend a little more to get a much safer property.

 

Agree with the above darlo. I think you would be better off in a town with less social issues, more stable jobs, possibility of growth in the future. I'm biased but Parkes or Forbes would be much better imo.

 

when you sell that future property in Wellington, who is going to buy from you ? It has to be either locals or another low ball offer from one of forumites.

 

Same can take months, others weeks. Depends on the property and the price.

I own several properties in Wellington. Haven't really had any problems, apart from extended vacancy when I purchased 5 years ago. The biggest factors are old houses in regional towns need work.

No more than any other regional town; don't believe the media beat up; spend a couple of days there (the Cow and Calf Hotel have nice rooms for < $100/night) and do your own due diligence.

Houses along the main roads into town (Swift, Warne, Percy) are mid 200s as well as the new stock in Montefiores which is 300k+. You'll be hard pressed to find any decent property under $100k now.

It's the end of the year. It's the quietest part of the year, in January the stock will get snapped up.

Why would you buy a 1 bedroom? The pool of potential tenants is tiny. Spend more and get at least a 3 bedroom. Yields are around 8%.

In Wellington, stay away from Walker St (the block) and the streets around Elizabeth St (the annex). Mostly housing commission and higher 'issues' with rentals. The closer you can get to Warne St, the better.

 

Why talk about it and do nothing for 6 months ?

Read what the other guy is saying, it is fine, just manage the tenant & buy what appeals to most.

Personally, I like the feel of Wellington and the look of the area, all towns have drug and social problems, you could go to Muswellbrook where the shops are dead, mining has turned & the locals like a riot every so often in one of the streets.

Wellington will be like many other small towns, it is for cash flow, CG will be slow and steady, it is not a buy today and sell in 2 years with some large profit, it will be a buy in, get the rent to cover costs if possible, and after 10 years consider a sale or if there has been a large CG cycle/shift, but if your paying it down, it will become an income source.

Realise that sales take 6 months in lots of places, this is good in a way, your not competing and rushing to buy, if you know the deal on the way in, you won't be surprised on the way out.

So do something, step one, stop talking and act - petrol price has dropped so go and visit and go and talk to property managers there and see what you think, then talk to sales, don't spend top dollar, don't go for the cheapest unless it is something that needs a reno you can do but located in an ok spot.

Is 2016 the year for Welly-boy ?

 

Or wellyS-boy

 

Guys Im in Wellington !!!
Just drove up from Sydney..havent seen any crime yet ??
Will check out properties tomorrow. ..checked out Orange today..now im in good old Wellington.

 

Too bad the agents are all on holidays until Monday next week.

 

First thing I done before I pound the pavement is to check out Wellington RSL Club..bit expensive on the meals though...but lovely locals..
Im here with my friend Moshe ..so funny to see the locals faces in the RSL when Moshe walks in..doubt they have seen a Orthodox Jew before. ..but he soon had many of them talking to him...i think he sold a few gold watches whilst i was eating in the Bistro !!

My feelings so far is there are more houses here than people.
There are hardly any areas which have street lighting which made it hard walking around at night.
Some of the cheaper areas Walker Cres etc are not nice...old cars with no wheels etc.
But so far I have just met lovely people...had only one guy throw a brick...and missed my car..in Walker crescent ..not sure what he was on..but i kept driving.apart from that i need to hit the pavements again.

On the way through to Wellingtin I stopped off at Orange City for Lunch...I love this big Country town too...a lot of Taxi Cabs which were busy..the place was like Newcastle..in fact it was busier than Newcastle.
Orange has come a long way.

 

There are places in Orange where they may hurl a brick at you too......or burn your IP down, it is also on the slide it seems to me at the moment, it has not been growing of late & vacancy a bit high still. Places like Wellington they are not building in bulk, so vacancy is probably stable, but you need to discuss with PM's.

Anyway, good that you have gone for a look, majority of locals in towns like that are far more genuine than anyone in the city.

I also find many of the RSL's have food far better than what they often dish up around Sydney.

 

There's a bus service between Dubbo and Wellington so this nullifies this argument.

 

that sounds like a disaster waiting to happen for everyone!!!!

Criminals arent that dumb.....or are they ?