IP Cash flow - broken hill vs mildura
- Thread starter christos
- Start date
I always start by visiting this website: http://www.genworth.com.au/lender-resource-centre/tools-and-resources/location-guide-australia/
If it doesn't fall into a category 1, 2 or 3 then it's hard to envisage it being a good investment unless there is a really good reason (like a speculative mining town). Reason for this is most lenders will not touch anything in the category 4 area, and most of them don't like anything in category 3 either. Having it hard to finance means you have a smaller pool of potential buyers (particularly when LMI is involved).
Mildura is category 2, Broken Hill is category 4.
If it doesn't fall into a category 1, 2 or 3 then it's hard to envisage it being a good investment unless there is a really good reason (like a speculative mining town). Reason for this is most lenders will not touch anything in the category 4 area, and most of them don't like anything in category 3 either. Having it hard to finance means you have a smaller pool of potential buyers (particularly when LMI is involved).
Mildura is category 2, Broken Hill is category 4.
Thanks Aaron - interestingly that is where I started. As a class two, you could potentially buy in Mildura at 90% LVR instead of 80% at other locations. There are some sub 100K properties so essentially you could be buying with a 10K deposit vs say a 16K deposit (i.e 20% of a 80K property).
Apprently, as of next Monday, broken hill is a catagory 3
http://www.genworth.com.au/docs/downloads/location-guidejanuary2013.pdf?Status=Master
http://www.genworth.com.au/docs/downloads/location-guidejanuary2013.pdf?Status=Master
I've spent a bit of time in Mildura. I have been tempted to purchase there!
I like it, big town, heaps to do. Seems to be plenty of diversity in the businesses. But soon as you go outside the city limits - wow theres some paddocks and heat!!
I think that market has been poor, but it's starting to turn for CG. I think in the next 2-3 it should bounce back.
If I was asked would you buy in Mildura, I'd probably say yes. Don't know Broken Hill. Aim to be near the medical main street areas though!!
I like it, big town, heaps to do. Seems to be plenty of diversity in the businesses. But soon as you go outside the city limits - wow theres some paddocks and heat!!
I think that market has been poor, but it's starting to turn for CG. I think in the next 2-3 it should bounce back.
If I was asked would you buy in Mildura, I'd probably say yes. Don't know Broken Hill. Aim to be near the medical main street areas though!!
Was in Broken Hill about 9 months ago. Not much activity downtown cafe/restaurant wise, particularly at night. This is unlike many other country towns (often much smaller) I have been to where most seem to have picked up on the desire of residents to want somewhere nice-ish to go for a coffee, meal over a bottle of wine etc. (And charge city prices for a coffee too - unbelievable ...conspiracy 
)
Here is a link to a video John Linderman recently did on BH v Cobar. See video top right of page.
)Here is a link to a video John Linderman recently did on BH v Cobar. See video top right of page.
Thanks Channon for that location guide - very helpful and good to know.
Was in Broken Hill about 9 months ago. Not much activity downtown cafe/restaurant wise, particularly at night. This is unlike many other country towns (often much smaller) I have been to where most seem to have picked up on the desire of residents to want somewhere nice-ish to go for a coffee, meal over a bottle of wine etc. (And charge city prices for a coffee too - unbelievable ...conspiracy
Here is a link to a video John Linderman recently did on BH v Cobar. See video top right of page.
Freudian slip?
Which comes first?
