Coonamble

Found properties in Coonamble that seem to get nearly 10% yield. Does anyone have knowledge of this town? Sort of considering getting a place for $70,000-$80,000 here. Probably won't as I want to get a PPOR in Melbourne in a few years. Already have an IP in Melbourne, which we are happy with.
 
I think i know the properties you are looking at. If they are the ones that are being sold individually but there is a group of them - ie 4 or 5 of them all in one street and all having the same design, then just be wary as to who they are currently being rented to.

In a sense, if the ones you are looking at are the same as what i saw, then they are being rented to a government agency who in turn, have specific tenants to put into them.


Thanks


g
 
Does that mean that there is less likely hood of default as it is backed by a government agency? Is it backed by government? I don't mind renting properties to public housing people, as long as I have some certainity of being paid.
 
If you're interested in investing in Coonamble check whether any agents there manage properties. I remember reading in the Coonamble Times about 5 years ago that there were not any real estate agents that managed properties. Possibly the situation has changed.
 
I don't know how this particular government agency works, but lets say that the tenants concerned are not known for keeping houses in good order.

I may be talking about different houses though. The ones i am referring to are in Limerick street and there is about 4 or 5 of them in a row. I did a check on them and they are all being sold by one guy (with an Indian name) and all rented to a government agency. The owner bought them a few years back and now it looks like he is selling them all.

It may pay to check with the agency concerned to see how their leasings work. It may be the same as other government agencies - i don't know. But capital gains is not that much when looking at the sales history of these places.

I must stress, my thoughts on these houses are exactly my thoughts. These houses may be great for positive income and my thoughts may be wrong so please don't use my words as a means to sway your decision. I'm just wary on the agency and tenants concerned.


Thanks


g
 
RE COOANMBLE :As a a local to Coonamble I can assure you that the houses referred to in relation to the government rent is correct however there are not amny of them. More importantly the renatal return in Coonamble is well above average and I would suggest in many instances over the 10% return. Yes capital gains is not great but rental investment is much better than a lot of other areas. There is an agent now (Tower and General) who handle rental properties.
 
This town seems to attract my interest for some reason from time to time. Properties are returning over 11% P.A. Having such a high return makes me nervous to invest, but at the same time it intrigues me.

Anyone who knows anything about this town please share. Oneday I'll have to visit.
 
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