Albury

[Decimator4000]

Morning All,

It seems the potential of Albury is untapped in relation to its diverse industry base and self-economy.

I do note that vacancy rates are 2% and that the demographics of the region are lower than the state average.

I am currently looking at the areas of East Albury and Lavington to buy a block of units. Strata units would be preferable. I am looking over 4 units with 2 bedrooms at least in each unit or alternatively 2 units/villas with a yield of over 10%. My end goal is for them to be positively geared.

My questions to the general audience is:

In your opinion is Albury a good choice to invest? Would you invest there or have you invested there? (Never been there)
Do you see the outlook as bright as me, with there population growth set to rise 30% over 20 years?
It seems like there are a lot of single level unit blocks around, very dense residential centres. Is the crime rate low or not?
What are the good and bad areas of Albury?
Would you buy a unit block or build units?
Does anyone understand the planning for Albury, what kind of blocks can you build units/townhouses on?

Thanks in advance.

Regards,

Deci

 

[coastal]

last time I checked there were about $600 - $900 million of projects going ahead...might be good long term buy if bought well.

90000 + pop in albury wodonga and predicted to go upto 130000 I think in next 20 years

 

[travelbug]

You need to research the suburbs of Albury. There are some bad patches in East Albury (and west Albury). Some of the agents won't handle rents in some streets.
There are a LOT of units in Albury so I would be wary of buying one. I looked there in 2009 and there were a lot of older houses being knocked down and units built. There always seem to be a lot for rent.
I'd speak to local real estate agents to find out how the vacancy rate is for units.

I haven't looked at population projections lately but in 2010 there was no significant growth prediction. But as mentioned already, there is a lot of construction and new businesses moving into the area.
Prices haven't moved, neither have rents so maybe a correction is due? But unless population does grow what will drive the increase?

There is a new estate with higher prices. Maybe people will look outside that if they can't afford there? As housing commission houses are being sold off the are may see some gentrification.

 

[Decimator4000]

Thanks for the advice so far.

Hope to have someone from Albury or better yet a current investor in Albury provide me their understanding of the market in Albury.

I do note there are a hell of a lot of rentals, namely units. Why is this? Are Alburians partial to units or is it just investors playing on the University town image?

As coastal states there are a lot of projects going in there and I'm hoping its a diamond in the rough.

Any more input to my first post questions would be appreciated.

Regards,

Deci

 

[Decimator4000]

I'm currently looking at a vacant block of land and building some townhouses on it. Would this be a wise decision within the Albury market at the moment.

 

[TMNT]

I'm currently looking at a vacant block of land and building some townhouses on it. Would this be a wise decision within the Albury market at the moment.

if vacant blocks are readily available, as well as finance, and supply, then you have to consider that if it was fesable, then everyone would be jumping at it

what sort of figures have you got down?

 

[Decimator4000]

Block of land - $90k
2x Townhouses build - $350k
Other expenses - $20k
Council Contributions already paid.
$460k TOTAL

Current market value for new townhouses $280k each. $560k TOTAL or $120 p/w positively geared.

Equity = $100k - 21%

 

[Brady]

Block of land - $90k
2x Townhouses build - $350k
Other expenses - $20k
Council Contributions already paid.
$460k TOTAL

Current market value for new townhouses $280k each. $560k TOTAL or $120 p/w positively geared.

Equity = $100k - 21%

Are the townhouses selling or advertised for $280k?

How long do they take to sell?

Can you afford the holding costs?

Are townhouses in demand if needed to be rented out?

What are the vacancy rates like in the area?

Do you have an exit strategy?

Best of luck

 

[travelbug]

Block of land - $90k
2x Townhouses build - $350k
Other expenses - $20k
Council Contributions already paid.
$460k TOTAL

Current market value for new townhouses $280k each. $560k TOTAL or $120 p/w positively geared.

Equity = $100k - 21%

$280k. Really? What part of Albury?

Houses that need a little Reno are under $200k in North Albury. You can buy a really good house for $280k.

Have you checked that they are actually selling for that? And compare areas. As I mentioned there is a LOT of difference in areas. If your is in the wrong area you'll be lucky to break even. Research, research, research.

 

[davu]

Bumping an older thread rather than starting a new one.

I'm keen in investing in Albury as I've visited the Albury and Wodonga often, and could tell the difference between the 2 towns.

I want to buy a relative cheap house with a nice return/low maint costs etc. I know East Albury is the posh area with a lot of newer houses being built, friends that are on Medical Rural rotation live there.

Prices aren't so cheap now in East Albury. Would people know where the Streets/Areas of housing commision are?

I've been looking at North Albury

 

[ChrisA1]

Hi Decimator

Just wondering if you decided to go ahead with further investigation/purchasing in Albury??

Terry Ryder placed it as one of his top Regional Hotspots 6 months ago - http://www.propertyobserver.com.au/...for-2013-the-key-webinar-slides/2012120958352

I see that Albury seems to be in, or near his top 10 regional spots.

 

[Decimator4000]

Hi Decimator

Just wondering if you decided to go ahead with further investigation/purchasing in Albury??

Terry Ryder placed it as one of his top Regional Hotspots 6 months ago - http://www.propertyobserver.com.au/...for-2013-the-key-webinar-slides/2012120958352

I see that Albury seems to be in, or near his top 10 regional spots.

Chris,

Unfortunately, I did not go ahead. The main reasons was the unemployment and crime rate, as well as the cost to build was too much for very little rent.

I will definitely keep an eye on the market, and if something comes up I will be purchasing within an instant.

Are you currently looking? and whereabouts?

 

[Spades]

I was looking at albury/wodonga over the weekend but with the amount of rentals and imo not much in the way of cg.
Maybe yarrawonga's worth a look by the lake?Or tallangatta maybe?

 

[coastal]

I think the Albury market has not heated up yet compared to other regional markets, as the rents have taken off and there is low vacancy in other regional.

The rents need to take off a bit more.

May be in the next 12 - 24 months

Long term I reckon Albury will do well

 

[travelbug]

I find it surprising that Terry Rider has it as a hot spot. Vacancy rate is high. Properties can sit vacant.
He states population growth as one of the drivers yet the projection is 1.65%pa.
Which is 850 people per year. There is a fare amount of new development which means no housing shortage. So what else is going to drive CG?

Rents have been pretty stagnant for the last 4 years. Prices haven't moved. Maybe I'm wrong? It is due for some growth. Hopefully. Only the fact that mine is costing me nothing to hold that im willing to wait. Things aren't selling in a hurry either.

Davy east albury has some good areas and is well located because of the hospital but some of the HC areas in east Albury are pretty scary. Drive around. There is a lot lose to the hospital but maybe they are being developed due to the good location. I haven't been down for 4 years.

 

[Truly Exotic]

I want to buy a relative cheap house with a nice return/low maint costs etc. I know East Albury is the posh area with a lot of newer houses being built, friends that are on Medical Rural rotation live there.

Prices aren't so cheap now in East Albury. Would people know where the Streets/Areas of housing commision are?

I've been looking at North Albury

have a drive down Eastern Circuit!! Luckily I was drove down at 9am, marijuana and cocaine dont wear off for at least 6-12 hours, so I was safe

Long term albury is fine, in the short term, its not about to boom,
yields are high and so is vacancy

 

[ChrisA1]

I find it surprising that Terry Rider has it as a hot spot. Vacancy rate is high. Properties can sit vacant.
He states population growth as one of the drivers yet the projection is 1.65%pa.
Which is 850 people per year. There is a fare amount of new development which means no housing shortage. So what else is going to drive CG?

I am also surprised that Terry has put it in his hotspotting reports over the past few years. Some key paragraphs from a recent article he commented in are:

I prefer places with diversity. Multiple strong economic elements in play and lots of diverse drivers of future growth.

I visited such a place this week, to gather research and speak at a seminar for property investors. I've had Albury-Wodonga in my hotspotting reports for the past year or so, but until I spent a full day touring the twin border cities with local agent Peter Drummond I did not fully appreciate its credentials.

Because of its diversity and solidity, Albury-Wodonga avoids the volatility of single-industry economies. As Albury City's director of economic development Tracey Squire says: "Instead of having peaks and troughs, we tend to have waves."

Albury-Wodonga ticks all the boxes. Its population (around 85,000) is growing at rates above national averages. Its location is strategic. Its connectivity is good. It sits beside a lake and a river runs through it.

The two local councils are forward-looking and proactive. It has multiple economic pistons driving prosperity. It has the critical mass and all the amenities of a modern city. Money is being spent on infrastructure. Property developers are active but not over-active. Major national enterprises have a significant presence there.

Its real estate is affordable and its rental returns well above average. Do you get the feeling I like the place?

I can think of few regional centres with the multi-faceted strength of Albury-Wodonga. Only Townsville in North Queensland might have greater claims.

Albury-Wodonga, which straddles the Murray River beside Lake Hume, generates economic activity and jobs from agriculture, manufacturing, defence, tourism, education, health services, construction and government administration.

(http://www.propertyobserver.com.au/...success-terry-ryder-hotspotting/2013052961767).


Interestingly, Margaret Lomas also likes the twin cities, but not a lot was said in the article - http://spionline.com.au/home/12079-hotspots-identified-for-nsw.

I must buy the latest Hotspotting report to get the details behind Terry's recommendations (I like that each hot spot has four or so pages of analysis).

The reason I keep coming back to Albury is also the diversified economy and that it is on the Hume Highway (I reason why I prefer Albury over Wagga). I know that the Woolies warehouse keeps a constant churn of groceries coming out! I see the number of trucks coming past every day!! I have also been told to diversify from Western Sydney!

The reason why I haven't jumped faster at Albury (and many others I'm sure) is the higher vacancy rate. I can do better than 2.4% particularly when Albury can't get the ripple effect benefits from other places (as you could in a suburb) - http://sqmresearch.com.au/graph_vacancy.php?postcode=albury&t=1

 

[Prop_Perspectiv]

Albury is on our radar next. Going to have a look on Monday, will report back if anyone is interested. We generally go into areas most people wouldn't touch though so not sure my insight will be helpful

 

[ChrisA1]

Albury is on our radar next. Going to have a look on Monday, will report back if anyone is interested. We generally go into areas most people wouldn't touch though so not sure my insight will be helpful

It's always good to hear other comments from the latest 'on the ground'. Look forward to hearing your comments

I'm interested in your comment about going into areas that most people wouldn't touch - could you please explain further and what your criteria is for a place to fit into this category

Cheers,

 

[travelbug]

Albury is on our radar next. Going to have a look on Monday, will report back if anyone is interested. We generally go into areas most people wouldn't touch though so not sure my insight will be helpful

And how has that worked out for you?

Care to name any areas and how it has profited you in the past?