Chinchilla - hold or run?

Not sure about rental inquiries increasing. Have just been advised to drop my rent by half! Hence registering for this forum ... I feel your pain. Obvious question is how long to hold out and how much faith to put in the promise of population growth. Will the vacancy rate really come down to a respectable level anytime soon?

I'm the same boat but not as severe

We have a 2 bed house In whyalla , had to drop rent from 330 to 250

Still a 5% yield on a subdividable corner block but definitely didn't turn out the way we planned

If you took out developers im certain we would of seen big capital gains, as the rentals available went from 20 in 2012 to around 180 today

Chinchilla has suffered a similar fate, over developed and a pretty small population 10k?

Did you buy existing or in an estate?

If your going to buy in these places you really have to minimise your risk, buy a cheap house in a desirable area which can be offloaded to a local if required.
 
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Not sure about rental inquiries increasing. Have just been advised to drop my rent by half! Hence registering for this forum ... I feel your pain. Obvious question is how long to hold out and how much faith to put in the promise of population growth. Will the vacancy rate really come down to a respectable level anytime soon?

I meant that rental enquiries have increased compared to end of last year.

however as you know this has not translated into rents unfortunately.

there was a forum in December where businesses were discussing how to get more people into the towns..with our tenants contemplating vacating at the end of their lease soon, lets hope it has some effect.

http://www.gasfieldscommissionqld.o...la-businesses-discuss-onshore-gas-future.html
 
I meant that rental enquiries have increased compared to end of last year.

however as you know this has not translated into rents unfortunately.

there was a forum in December where businesses were discussing how to get more people into the towns..with our tenants contemplating vacating at the end of their lease soon, lets hope it has some effect.

http://www.gasfieldscommissionqld.o...la-businesses-discuss-onshore-gas-future.html

Thanks for the forum link. It's encouraging to see evidence of the townspeople coming together to discuss ways forward. My ultimate question is to get out now or hold on? Neither are attractive options but it feels like holding on is the least evil. Not sure we will ever see the 7plus% returns again but perhaps come back to more respectable gains over the longer term?

Clarrett
 
I'm the same boat but not as severe

We have a 2 bed house In whyalla , had to drop rent from 330 to 250

Still a 5% yield on a subdividable corner block but definitely didn't turn out the way we planned

If you took out developers im certain we would of seen big capital gains, as the rentals available went from 20 in 2012 to around 180 today

Chinchilla has suffered a similar fate, over developed and a pretty small population 10k?

Did you buy existing or in an estate?

If your going to buy in these places you really have to minimise your risk, buy a cheap house in a desirable area which can be offloaded to a local if required.
I bought existing near the hospital. When I asked my PM about advertising through hospital staff she suggested most staff are happily housed and in new 4x2 homes for cheaper rent than what I am currently getting! How do you get your property to stand out without making it ridiculously cheap?

Clarrett
 
I bought existing near the hospital. When I asked my PM about advertising through hospital staff she suggested most staff are happily housed and in new 4x2 homes for cheaper rent than what I am currently getting! How do you get your property to stand out without making it ridiculously cheap?

Clarrett

I guess the issue is that chinchilla is just too small

5 minutes gets you from anywhere in town to the hospital, established will only work if it's closer to town by a fair bit

In whyalla the new estates like Jenkins are 12 - 15 minutes from the town and hospital, so just far enough that some people will choose established over new

At the end of the day you are still way better off than those who bought new places for 450k with what is now a crappy yield
 
I bought existing near the hospital. When I asked my PM about advertising through hospital staff she suggested most staff are happily housed and in new 4x2 homes for cheaper rent than what I am currently getting! How do you get your property to stand out without making it ridiculously cheap?

Clarrett

It all boils down to price and features.

If all features are the same, most tenants will decide by rental price.

If prices are the same, most tenants will prefer the one with the best features.

Basically, that's it. All you can do is ensure you are in the cheaper range for comparable properties to minimise vacancies.
Marg
 
It all boils down to price and features.

If all features are the same, most tenants will decide by rental price.

If prices are the same, most tenants will prefer the one with the best features.

Basically, that's it. All you can do is ensure you are in the cheaper range for comparable properties to minimise vacancies.
Marg
Yep I agree Marg. Thats good common sense. I already spoke with PM and suggested she drop the price yet again because $800.00 PCM is sure better than $0.00 PCM. Her advice was that nothing will move significantly within the next 12 months! Im putting my seat belt on and thinking about a second job....

Clare
 
One problem in Chinchilla is that property managers are under cutting each other..

Tell me about it. I got promo material from a competition realestate agency sent to my Vic. address. When I quizzed my PM about how they got my details she said they are doing title searches on RP data and aggressively approaching investor owners. Everyone is suffering in Chinchilla right now. Don't even know if you could reframe it into a buyers market!

Clarrett
 
Tell me about it. I got promo material from a competition realestate agency sent to my Vic. address. When I quizzed my PM about how they got my details she said they are doing title searches on RP data and aggressively approaching investor owners. Everyone is suffering in Chinchilla right now. Don't even know if you could reframe it into a buyers market!

Clarrett

I'm about to change my Property Manager..
 
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