Regional Investing-New South Wales..

[mchamp76]

We have 3 regional properties and seem to be benefiting from them. The cost is lower and they don't have to be the most modern of places to suit the needs of the locality. There is always profit to be made if done properly.
The funny thing is that people don't look in the regional areas. All of ours are making money, yet no one wants to buy them. Very interesting situation to say the least.
We wouldn't consider buying in the metro areas to be honest.

 

[WattleIdo]

We have 3 regional properties and seem to be benefiting from them. The cost is lower and they don't have to be the most modern of places to suit the needs of the locality. There is always profit to be made if done properly.
The funny thing is that people don't look in the regional areas. All of ours are making money, yet no one wants to buy them. Very interesting situation to say the least.
We wouldn't consider buying in the metro areas to be honest.

Can I ask where, mchamp? Orange?

 

[WattleIdo]

We have 4 regional NSW properties performing well and positively geared. Due to seeking cash flow we find the entry prices better than metro areas and there's a lot of great regional towns plodding along nicely with new projects. Our criteria centre around looking for regional universities, new medical services and centres, hospital upgrades, good private schools, good flight options , rail stations, and within 3hrs of a major centre. If you're after capital growth though you should probs be looking elsewhere. Good luck with whatever path you take.

tutly - would you mind telling us where your houses are?

 

[mchamp76]

Coolah and Cowra.

 

[WattleIdo]

Yes, I can see why you'd be doing well. Am considering Cowra myself. I think it has a future, being so pretty and going by the kinds of shops they have there.

Haven't been to Coolah since I was a kid and doing a Valiant + 5 person family + grandfather trip. Only remember the name but seem to remember we liked it.

 

[mchamp76]

Yes, I can see why you'd be doing well. Am considering Cowra myself. I think it has a future, being so pretty and going by the kinds of shops they have there.

Haven't been to Coolah since I was a kid and doing a Valiant + 5 person family + grandfather trip. Only remember the name but seem to remember we liked it.

Cowra is a cute little town, certainly moving forward.
Coolah - haha, loving your memories of it. It has it's lurks and perks, but still has potential - I mean there are 2 schools there and work if you look for it, on some main routes and major towns aren't too far away.

 

[RetireRich101]

Good points and you are right, a 200k property won't loose value with new development . If anything cheaper properties could benefit. I meant this kind of thing:
http://www.theherald.com.au/story/463783/raymond-terrace-land-rezoned-for-4500-homes/
Cheers, Alice

Thanks for sharing. Interesting to see how this unfolds...
Currently population in RT is 12725 people. The proposed zoning is 4500 houses and a 12500 people. This essentially is a new town.

The announcement was 2010, and by the time they put infrastructure, roads, sewerage in, the first built house would be 400-500K..
Since I now purchased in RT, I would think a new urban town development would have positive impact on neighboring town than negative.

 

[knightm]

Cowra is a cute little town, certainly moving forward.

Cowra is a little small and lacks major projects but cheapies are available and there are worse options out there. Its on my secondary list for those looking at sub 150k entry. Problem lately is the vacancy rate jumped after several yrs under 2% its now at 2.7%. Again not the worst but need the deal to justify it can't just expect to walk in and demand premium rent.

 

[Harro]

Cowra is a little small and lacks major projects but cheapies are available and there are worse options out there. Its on my secondary list for those looking at sub 150k entry. Problem lately is the vacancy rate jumped after several yrs under 2% its now at 2.7%. Again not the worst but need the deal to justify it can't just expect to walk in and demand premium rent.

Very true.
I would also suspect that what you pay $ 200k for in 2014, will be $200k in 2034.

 

[beachgurl]

We have 3 regional properties and seem to be benefiting from them. The cost is lower and they don't have to be the most modern of places to suit the needs of the locality. There is always profit to be made if done properly.
The funny thing is that people don't look in the regional areas. All of ours are making money, yet no one wants to buy them. Very interesting situation to say the least.
We wouldn't consider buying in the metro areas to be honest.

If you think they are great areas why are you selling? DH is from Young and most people from there think Cowra is dying. People moving out of town to a bigger regional.

 

[jameso]

Very true.
I would also suspect that what you pay $ 200k for in 2014, will be $200k in 2034.

I'd bet my old fella your wrong. Unless there is a toxic spill nearby or somthing.

My parents purchased 3 houses in a small qld country town for around 35k each in 1990s now worth around 240 each avg. They said at the time they purchased people said they will never ever ever go for more than they paid and they had made very bad choice. Not the world's biggest win but they have been cf + for 20 years.

 

[Harro]

I'd bet my old fella your wrong. Unless there is a toxic spill nearby or somthing.

My parents purchased 3 houses in a small qld country town for around 35k each in 1990s now worth around 240 each avg. They said at the time they purchased people said they will never ever ever go for more than they paid and they had made very bad choice. Not the world's biggest win but they have been cf + for 20 years.

That has been a nice outcome for your parents. What I was inferring was that while entry costs are normally lower into "Regionals", investors are looking at cash flow, with Capital Gains not being a priority.
They are nice if they come along and you wish to cash out, but often take a substantial amount of time to come off. However, there is always the exception to the norm.

 

[WattleIdo]

If you think they are great areas why are you selling? DH is from Young and most people from there think Cowra is dying. People moving out of town to a bigger regional.

The canning factory closed down last year - was it IXL or SPC? That would've seen a few of the workers moving out to somewhere bigger.
Having said that, being such a pretty town and having a few cheapies around, I imagine it would appeal to some retiring baby-boomers. The retail suggests that the community exists: cafes, boutiques, home d?cor.

It's secondary on my list too. Would need to be a good deal - they certainly exist. I'm not looking there at present.

knight:Again not the worst but need the deal to justify it

 

[Harro]

Are you in the NSW Central West at Parkes WattleIdo?
I would of thought this area with a mine at North Parkes would be ok, for regional investment, or, are the mine workers primarily owner occupiers?

 

[mchamp76]

Hmmm, I thought this was a pleasant place to chat. Each to their own.
We aren't selling as a necessity, more of an option to other things. If nothing sells, then so be it. No one understands the local community and the rates until they really know the area. Our place hasn't ever been vacant, but I guess you just need to do your homework.
We moved to a very small country town for only a few months and everyone told us that we wouldn't get work and we would just stay there forever - options are available but people need to want to do things - same with housing.
Personally, after living in a mining town, I wouldn't lease to them, but that is just my opinion. I get to see a lot more of the inside to that due to the nature of my work.
Anyway, I certainly learnt my lesson of commenting, so thanks for the brief chat.

 

[Jaggannath]

MChamp, why so defensive? I think it may have been a genuine question, and if not I'm interested... why are you selling? Obviously everyone has different situations, but if they're cf+ do you feel that better options exist elsewhere?

 

[mchamp76]

Not defensive. I guess I enjoyed this place before I actually commented!
Selling because we want a break. That's about it.
Yes I do believe better options are out there.

 

[Jaggannath]

haha it can sometimes feel like a fishbowl.

As good a reason as any. If you feel like sharing other regionals where you think there's value that'd be cool, but if not to keep your research close-hold totally understand.

 

[knightm]

mchamp its a friendly and ruthless place. The longer you are hear the more you realise that as people pull no punches from behind their computer screens. Good thing is people are also really honest and surprisingly helpful in here too.

There are always those who ask questions about motivation, deals, looking for people who are trying to achieve hidden purpose. The forum is pretty good at sniffing out undeclared motiv. There are also lots of great info sharing opportunities and many (myself included) are of the view that the collective wisdom here represents one of the best masterminds in Aus real estate.

I am also interested in your thoughts on where you are investing in the future if you are willing to discuss?

 

[beachgurl]

The only reason I asked was because mcchamp sent me a PM asking me if I'd like to purchase any of their properties and details of each. After a post count of 3 I wondered their motives, that's all. No need to be defensive about it, was just asking on the public forum rather than replying privately.