Any experince with Albury NSW or Wagga Wagga NSW

[Peter 14.7]

Dear All

I am looking for a town to build say 4 villas on one block and title. The plan to have new, attractive, low cost and maintenance investments hopefully positive geared. Also looking for security and growth.

So prioirty is:

1.Income
2. Security
3. Growth

Wagga Wagga and Albury NSW seems to be serious options.

Can anyone with experience and/or properties in these towns comment on the usual stuff, tenants, vacancy, agents they would recomend, websites, return, etc..

Thanks in advance, Peter 147

 

[rossv]

Hi peter,

Can't comment on albury but i have a few in wagga.

I have found very strong demand for rentals.

the city has a uni, an army and air force base, plus it is the largest non coastal city in aust.

One agent i have found most useful is adam drummond from fitzpatricks RE.

website? try this

http://www.riverinahomes.com.au/splash.html[/URL]

As to returns, you'd be struggling to find anything over 6% yield

regards

rossv

 

[Peter 14.7]

Thanks Rossv

I am visiting Wagga in Jan 2004 so I will follow up the lead and make contact before hand.

Peter 147

 

[Stacmar]

Hi Peter

In Jan'03 bought 8 units across the road from hospital
Edward Street 10% return, the units have doubled. Obviously now 5 to 5.7 return in wagga.

I would recommend that you talk to the following people -

Agent:

I would highly recommend Greg Breust from Breust First National fantastic -he worked overtime for me & a friend. Breust also manage my properties and my girl friend's 6 units - the entire group is professional.

Valuer:

David Bolton (Bolton Valuers) full of knowledge and willing to talk to you. I spoke to David yesterday very busy, piles of work before xmas but I think if you rang him after xmas he would give you valuable info on local area. When I spoke to him he thought that there could be a little bit more growth to go. I would not buy everything without talking to him first.

He also said that there is an over abundance of rental properties in the $250 to $350 per week margin and some hard to rent.

Peter you could try defence housing guaranteed income for 6 to 9 years with an option of 3 years.

http://www.dha.gov.au/ and subscribe to search alert.

Peter have you tried tamworth, I am building there now.

Debbie

PS Hope this helped.

:cool

 

[Cat09Tails]

Peter,

I don't believe there's been a big building oversupply in Wagga. I bought there a few months ago at the asking price and had a 27% capital growth on it on a bank valuation two months later.

Wagga's a pretty city, but there's some suburbs you might not want to build in- ask locals about where to buy, or you'll be losing value before you build.

This site is not as good as the "flash" site mentioned above, but it's halfway decent:

http://www.riverinarealestateguide.com/resid/index.htm

I use Hore and Davies as PM's- professional and no drama.

Cat

 

[Zyleth]

Hi Peter,

I am only a newbie when it comes to property, but I am living in Albury and have been doing some research for myself.

Basically, Albury has a great vacancy rate of around 2-3%. There is quite a few Uni's and TAFE's around so you can expect Students to be the main source of rentals.

In the last few weeks the best yeild I have seen is 6.5%, but they seem to mainly hover around 5.5%.

I would like to be able to help you some more but like I said I am only new to this game (About 3 Weeks). So if I find out anymore I will let you know.

Zyleth

 

[Peter 14.7]

Hi Zyleth

Welcome to the forum and thanks for your post. 6.5% isn’t bad. I'm in Sydney. If you don't mind I have some questions:

1. What are rates like say for average house block? Do they include water?

2. My proposal is to buy a block and build a bunch of units, either villa or flats or townhouses (say around 6) Type subject to best rental return versus cost versus risk. Set and forget via good Agent. What do you think has best demand now and future?

3. Students like cheap and cheerful and low cost and close to uni/tafe but leave at X mas. Elderly are good tenants and stay long. Much market here. Say use SEPP 5. Is the elderly demand there?

4. Hoping to wait for slowdown in building to get the right site and builder. Do you see that happening? Are Builders busy now? Do you see it slowing up?

5. Approvals. Council any comments here. Can't be as bad as Sydney. Any special issues.

Thanks, Peter

 

[Zyleth]

Hi Peter 147

Because I am so new to this I can't really answer your questions as of yet, BUT, I will use them as a reference point for my further enquires around town.

I will be going around looking at houses this weekend so I will see what I can find out for you.

This is what I can tell you atm.

As for the tenants question. I don't have any stats to back this up but if you look at a lot of the bad drivers on the road down here you will see plenty of elderly ppl. Seriously though there are a lot of elderly ppl living here and there is a high demand and a long waiting list for the units in the retirement villages, so maybe you could look at making a mini retirement village.

With the building side of things, I know that they are very busy right now but I just thought that that was part of the FHOG boom everywhere.
As for it slowing up I am no expert but if the interest rates rise who knows.

That is about all I can help you with atm, and like I said I will try to get some more information for you soon.

Zyleth

 

[Peter 14.7]

Hi Zyleth

Thanks for the ATM comments. I do like the idea of elderly retirement village concept. Using SEPP (state environmental planning policy) 5 you can get approval to medium density in most areas. Noting your comments re parking I assume you would need

- carport or garage ( which one)
- two beds, one as study/visitors or can to provide a one bed
- open plan living but small ish
- no steps or stairs
- some garden but simple
- low maintenace costs
- pretty but simple construction even face brick
- lots of turning space for parking

Do you have any agents to recmmend I can contact?

Peter 147

 

[Zyleth]

Hi Peter 147

I have finally got around to finishing answering your questions,

I have found that the average rates around here are about $1200 - $1300 and this does include water.

I haven't really got into the development side of things yet so I can't give you any feedback there.

In the last few weeks I have seen quite a few different REA's and I have not found any that I think really stands out from the pack. What I found strange is, even though I have only been into investing for a few weeks a lot of the agents can't answer what I would assume to be simple questions. Eg. Vacancy rates. Or maybe I am just a little to wet around the ears to know a good agent from bad. So atm I won't recommend any of them.

Anyway, I hope this gives you a bit of a better understanding of what albury is like

Regards

Zyleth

 

[Peter 14.7]

Hi Zyleth

Thanks for the reply. Spent last week in Wagga and saw a few opportunities. Seems to be best to buy and build as the area has been gone over. FYI A six unit complex in Edney St (very bad location I’m told) was looking for offers over $420k for a gross return of $610 a week. Agents costs around 8% for net before property costs of $560. Assuming 7.5% rates this is just equal gearing with potential for nil growth.

A lot recommended Albury and Griffith. IT seems irrigation and wines equal growth

Regarding your comments re agent’s knowledge don’t be surprised and some agents are only salespeople with little IP investment knowledge. To them the next listing is what matters and yield and stuff is all French! Keep learning from the site and you will soon know more than them.

Regards Peter

 

[Cat09Tails]

Peter,

Albury has a population of about 20k less than Wagga, and Griffith is very small in comparison. I've raked over the prices in both Griffith and Albury and it's similar to Wagga anyway.

And yes- Edney street is problematic. If the rentals are $100 a week for two-bed units, you can understand what you're buying into. Similar for Joyes Place in Tolland. The streets around those areas are ok though- mostly HC- not that there's anything wrong with that

Re your inquiry before about the University in Wagga. It's miles away from the city, so if you built some kind of student accommodation close to the University, it would be very much single-use. There is a suburb that has been built next to the University, so some academics etc might be a market too.

Did you feel the Wagga market had gone up? What did the RE's say about prices there now?

Cat

 

[Peter 14.7]

Comments on Wagga Trip

Hi Cat

Thanks for your comment. FYI REA said market has moved a lot in 12 months and homepath shows it as 30% median growth. However still better value than Sydney but heah.. What isn't? Probably can break even with a bit of hunting.

No comment on future growth. I don’t think they understood where the first growth can from?!?! Comments of Sydney and Canberra people buying up.

I talked to three agents and looked at a lot of windows including Junee (30min north of wagga) Overall I would say Wagga has potential in the long term from these observations.

Council is very proactive in cultural and sporting facilities. Keen to establish a city/regional centre lifestyle for those looking to get out of the Sydney. Excellent and large Botanical Gardens in centre.

Has good restaurants open late and even Monday night. VG shopping, huge new $17M wave pool complex. Lots parking still free and VG access. No graffiti or crime to see.

Quality Heritage Home in Central around $340 to $400k. Turvey Park another suburbs to watch. Airport, rail etc..

Defense (air and army) after almost closing shop a few years back is again (post Sept 11) a big employer and money winner. DF Housing presently buying and building in Wagga up-market homes.

OA I came away very impressed with Wagga, so much my wife and I, more than once passed an admiring eye over heritage homes in central for PPOR. We always plan to leave Sydney in 5 to 10 years so now Wagga is on the list. I think many others will do the same. Large retirement population already.

A place to watch and I plan to do so, Peter

 

[Freedom]

Ross
I think Toowoomba might be the largest inland city about 87K to 56K for Wagga, but, of course, it depends how much of the surrounding region you count - Albury Wodonga combined with surrounding region is 105K.
Maybe Toowoomba is undervalued, given that it is also within two hours of the coast?

 

[Catwoman]

I went to Albury late last year to see a block of units in Albury. South Albury has a clash between residential and industrial property ie residents complaining about trucks go by residential areas. I understand that the local council is or has introduced some "separation" rule about building villas/units on block that is next to another block of units and villas. However, they are considering whether this should apply to South Albury because units and villa development is dense and it did not make sense to have the separation rule in the South.
It is best to speak with the townplanner at Albury Council for further details.