pos geared properties regional vic where to start investigating?

[units4me]

Big potential in regional Victoria? Have a look at this.

http://www.theaustralian.news.com.au/business/story/0,28124,24536657-30538,00.html

"The powerful Latrobe Valley takes a lot of beating

HOTSPOTTING: Terry Ryder | October 23, 2008

Article from: The Australian

IF I was a developer looking for opportunities in turbulent times, my top five target areas would include Victoria's Latrobe Valley.

This is a region bristling with possibilities for developers of retail, commercial and residential real estate, as well as smaller investors.

The Latrobe Valley doesn't get many wraps, as most of the focus is on the capital cities and sexy sea-change locations, but I can't think of many spots with more in their favour than Latrobe City, which covers Traralgon, Morwell and Moe.

...

 

[Cashflow]

Hi Francine

Yes it is possible to have both positive cash flow and capital growth. I have bought property in Broken Hill for $75,000 and current rent is now $180. Less than two years later it was valued at $150,000. For rural residential properties make sure you obtain long leases - preferably 12 months. If there is more than one tenant have all the tenants names on the lease - that way if they skip town you have more than one person you can chase. Take out landlord insurance to help out if this happens. Also building insurance. If you purchase more than one property in an area and you don't want to (of if the property is too far away) negotiate management fees with agents. You'll find that in smaller communities where there is less competition between agents management fees can be as high as 10% so when you are doing your figures ensure you know what your management fees will be first.

You can find both positive cash flow and growth in commercial properties as well. We bought a property in Maryborough which returned great growth profit as well as being cash flow positive from the start. When looking for commerical properties ensure that you have directors guarantees for the rent. This is a backup in case the business goes into liquidation - you can still chase the directors for money owing.

It takes time and persistence but there are properties out there that will give you both. If you are looking to purchase a property in a regional area and want to keep an eye on what's going on locally - subscribe to the local newspaper its a great way to keep up to date. You may also need a population of at least 10,000 to qualify for a bank loan. Check this out with your mortgage broker before starting your property search.

Peter
www.cashflowcalculators.com.au
www.privaterealestate.net.au

 

[Normie]

There are plenty of cash flow positive in regional vic.
The areas i like the best are:
Ararat - On rail line, country living but still a well connected town
Colac - On rail line, country living but still a well connected town
Corio - Close to Melbourne & Geelong but more affordable for renters.
Mildura - Big Town so good demand for rentals
Moe - Lots of propertys around $100K suitable for rentals
Morwell - Generally More expensive than Moe might get bit more cash flow
Yallourn North - Did have some great value Cf+ they seem to have gone tho

In Western VIC all around the wimmera you can pick up very cheap cash flow positive but you run a big risk of a long vacancy rate when tenants leave and propertys dont seem to have as much capital gains as well a lot of them stay on the market for a long time.

Before making any decisons i would go and visit as many regional areas as possible, dont just drive around get out of the car, even catch a train down there you will see so much more.

With all investments there are risks but these can be greatly minimized with research.

 

[Rohcin]

Does anyone know of a good property manager in Traralgon

 

[Cashflow]

Hi Lynchy

Are you up for land tax as well. If you have purchased in a trust structure there is no threshold so land tax is payable from your first purchase.

Peter
www.cashflowcalculators.com.au
www.privaterealestate.net.au

 

[RumpledElf]

Had a look at what was for sale in Broken Hill the other night for no particular reason (besides friends saying it is 'nice') and while I strongly disagree with the 'nice' sentiment (fibro houses on small blocks aren't my thing) there's a lot of houses for sale in the $80-120k range that are rented out or rentable and would be positively geared. Still not Victoria though

I keep meaning to visit Broken Hill actually, its just down the road. 300km or so is a nice drive ...

 

[our obsession]

Relfy:

I keep meaning to visit Broken Hill actually, its just down the road. 300km or so is a nice drive ...

Yes it is a nice drive.

 

[topcropper]

Then the beautiful farming soils, I am familiar with; Hamilton/Wimmera areas, the great sand farms of the Mallee, direct drill those and you make a buck even in gut wrenching droughts.

Looks like you lot are getting plenty of rain lately OO. Is it just right or too much? I'd imagine a bumper crop across the entire area would do wonders for your property portfolio.

I vote OurObsession as the next SS member to do an interview on.



Going great here now, and looks like we have more rain coming Wednesday. Don't really need much this time of year. I'd rather if we could save it up till spring time. The next few days we are in for magnificent weather. Light frosts and warm sunny days, up to 21 degrees by Tomorrow. Wow hoo.
I take back all that nasty stuff I said about winter a few days ago.

See ya's.

 

[RumpledElf]

Yes it is a nice drive.

I'm coming from the SA side though ... just looking at the map, I don't think there is *anything* between Yunta and Cockburn

 

[newlywed1311]

RE, we just tripped up to Broken Hill a couple of weeks away for a holiday with the kids. I also had a look at property upon my return home to see what they were asking for it. I agree with you that it that it's not particularly 'nice' and I think the prices reflect that. We actually found it quite unaesthetically appealling and from looking on Domain, looks like the homes are largely unrenovated.
It's a nice place to visit but miles from anywhere and not particularly pretty. It has some awesome history though and a trip to Silverton and down the mines was great fun
Now Mildura.... that's another place altogether. Beautiful city