Foxygirl:
it seems they way to find a cashflow positive property is to buy in a regional town. but how small is too small? my main aim would be income, but if the property isn't going to get capital growth then there doesn't seem much point. DO people think that very small towns will or won't have growth?
Rural, regional towns and cities do have growth. Not in any way like popular inner city suburbs or sea change areas but growth all the same.
I live in the midst of regional Victoria, and know the Brims, Dimboolas, Horsham, Ouyen, Marnoo areas well.
It is my opinion Brim is too small, I would worry for you re the growth; (likely it may not have much as the other bigger towns and rural cities surrounding it), plus, being able to rent it, that's not to say it wouldn't rent,
but, it might be better to IP shop in Ouyen, Horsham and get a relative steady ongoing rental demand, plus relatively better facilities, ie schools, hospital, tradespeople, other infrastructure and growth.
I have a list of Valuer-General median house prices 1994-2005 for the State of Victoria, I am more than happy to mail you this info (PM and nominate a place I could mail it to)..but meanwhile I can give you statistics for some of these places, that is, their last 10 year growth:
Ouyen, last big town on Sunraysia Highway begore reaching Sunraysia area, (Redcliffs, Irymple and Mildura)..it has been busy with people buying IP's there. Possibly "this news" is getting them a little keen:
http://www.abc.net.au/news/stories/2007/05/22/1929437.htm
http://www.mildura.vic.gov.au/Files/Ouyen_Structure_Plan.pdf
http://www.visitmildura.com.au/ouyen.html
My cousin was a farmer in Ouyen who sold his farm there to Corporate Investors who specialise in farming land as investments, now they have hired him back as manager of the farm, so the drought which was strangling his cashflow has (facilitated) and turned into a good business move. The drought is just another challenge in people's lives, most lives, businesses, towns, communities will go on. Pretty hardy bunch you know.
Horsham is another regional city, I have IP's there, providing me with a nice balance of return
and growth.
The flat open plains in the Horsham Shire are considered to be one of the most reliable grain growing areas in Australia. Horsham is the main service centre for the whole Wimmera area, with a catchment population of approximately 55,000 people.
http://www.hrcc.vic.gov.au/
This (specifically) is interesting:
http://www.hrcc.vic.gov.au/main.cfm?CategoryID=9&contentfile=infopage&topicid=166
I'm quite happy to keep investing in Horsham as long as the deal/figures stack up for us. And that is important to note, every investor is different and has different needs re/ their portfolio.
We also have IP's in Bendigo and another in a much smaller town, IP, bought and leased to an Agricultural Development Group as a property to rent to their coming and going Scientists, Researchers and Agronomists. It has a population of 900 people, a great school, hospital, good shopping and reasonably central to bigger cities, but I don't think I would go overboard, like one IP is probablt enough for me, that's not to say I wouldn't do the same thing in another small town half and hour away, get something solid, good heating and cooling, paint it if need be, furnish it and do a deal with the local school...? hospital...any local business that might want a furnished property for their staff? Get the gist? See what's needed/available and meet the demand...So I'm kinda spreading myself around, but meeting the needs...hmmm, that sounds like
Foxygirl:
in victoria, there seems to be a lot of small towns to choose from, but again, how small is too small? there are small ones such as Brim, Dimboola, Goroke, Horsham, Marnoo, Moe, Morwell, Ouyen, Serviceton
ouyen for example seems to have a bit for sale, but is it worth investing there?
i've started doing some investigations into the stats for these places, but any extra inside info anyone has on these qld and vic small towns would be great!
So here are growth stats for 1994-2005; (Courtesy of Vic Valuer-General):
Ouyen: 1994 Median House Price: $40,500.............2004: MHP $70,000........change of:
73%
Horsham: 1994: $82,500................2004: $155,000............
88%
Mildura: 1994: $95,000..............2004: $184,000..............
94%
Mortlake: 1994: $40,000.....................2004: $112,870.............
182%
Bendigo: 1994: $84,000.....................2004: $200,000............
138%
Murtoa: 1994: $38,550.....................2004: $84,000............
118%
