Wellington NSW

Hi Guys,

Can anyone please provide some input and an opinion on investing in the town of Wellington in NSW?

What are the rental demands like, the average quality of most tenants, the potential for capital gains and expected weekly rental return for both a 3 bedder and 4 bedder home?

Any input would be most appreciated...

:)
 
My advice: ensure you have the windows up as you drive through.

finding a good tenant is hard, expect high vacancy and vandalism.
 
:eek:Oh no

I have just purchased two properties in Wellington and looking for a positive cash return. I was fortunate to pickup one 3 bedder for $65K and a 4 bedder of $60K with a rental return on each of between approximately $180-$200 each per week. Both properties in fair and reasonable condition with large blocks.

Both properties were fortunately purchased 30K below bank val each :D

I'm guess what I am most curious about is what problems I may expect to run into along the way with tenants, capital gains and of course the town folk in general.

Also, does anyone have experience with locals agents and whom may be the best to work with to manage these?

Any advice or input would help me at this stage please...
 
Sounds like you got them for a pretty good price. were they advertised?

I know people who live in wellington that don't go on holidays because that's when your house gets broken into.
 
Mine were advertised, however I was fortunately in the right place at the right time to have been able to capitalize on the situation of two desperate vendors.

Do you know what parts of the town a particularly bad areas? Street names perhaps?
 
Hi Guys,

Does anyone else have knowledge on the area that you could share? I'm struggling to find information to assist me with making the correct decisions on what direction to take with the properties I have purchased.
 
Hi Guys,

Does anyone else have knowledge on the area that you could share? I'm struggling to find information to assist me with making the correct decisions on what direction to take with the properties I have purchased.

Now that you have purchased, I'm not too sure what you mean by "direction to take the properties". :confused:

Vacancy rates you can find here: http://sqmresearch.com.au/terms_vacancy.php

Capital growth rates and censis stats you can get for free from a link on my website: http://www.propertunity.com.au/buying/area/
There's a pricefinder widget at the bottom of the page - type the suburb name <wellington> slowly in the box and choose from the dropdown list.
 
Hi Guys,

Does anyone else have knowledge on the area that you could share? I'm struggling to find information to assist me with making the correct decisions on what direction to take with the properties I have purchased.
Look I know it's probably stating the obvious, but shouldn't you have asked this before you purchased?

Probably the fact you are finding it hard to get a lot of detail or stats should tell you that it probably isn't the greatest location, but this doesn't mean in the long term it won't make gains (anything is possible).

Didn't you also buy a couple in Leeton and ask the same thing or am I getting you mixed up with another poster.

Good luck with it ...

Mystery
 
As an ex dubbo girl (just up the road from Wellington) I wouldn't touch the place with a barge pole. I travelled thru town a lot for work, and often felt unsafe. There was always kids wandering around the streets in school hours looking for mischief ..
There is a lot of crime in the town, and I would be concerned about vacant properties being vandalised .. The local jail doesn't help attract quality tenants.
 
Hi Guys,

Thanks for providing me with some input on this, albeit probably not what I was hoping to hear.

To give some understanding on the situation I best tell you how this all came about...

I saw one property listed for sale (4 bedder house in need of some repairs after some vandalism from being empty for just on 12 months. I spoke with a few of the agents in town whom all remained neutral and said that Wellington was quite a humble town that was at the bottom of its cycle with plenty of bargains to be had. I contacted the local Poilce station whom said that there were some issues which were in fact being focused on and of which most was due to just a few known families in town that were being moved along back into the major towns of Orange and Dubbo to dilute their "power". I spoke with council staff, post men, neighbours and all seemed to be of a fairly neutral stand point and had a "sort of pride" about the town. I even stopped into a small cafe for lunch after viewing the property and when I lokced my car an old fella sitting having a coffee giggled at me and said he coule tell I was from Sydney because locals don't worry about car theft so much as the big city folk. All reassuring signs that things would be ok and the few negitves would only improve over time.

The numbers are 60K returning $175 - $185 per week which stacks up at around 15.6% which is pretty good with cashflow positive property I felt and when I felt uneasy about the numbers I was assured that finding a tenant that is respectful shouldn't take more than a week or two at the max!

Now, in the interim after making my offer and getting things underway the agent called and told me of another property in the street which is in somewhat "turnkey condition" besides it having a rougher tenant whom keeps pets inside (I have an inside dog myself so this wasn't of any concern). The property was being sold by an investing couple whom are in the process of selling investments due to a disolving relationship. I offered $65K and the deal was accepted. So again 65K and a renturn of around $160 per week being 12.8% which again is not bad for a "turn key" property.

Now I make a visit to town and view house number one and I walk into something and a situation that is very much different to the first time I investigated Wellington and I'm frustrated. It's like the movie Funny Farm where the locals must have been paid to perform and behave when I first inspected, however this time Wellingtons colours seemed to leak through. I felt like I was in the movie Children of the corn as they starred at me with curiosity and interest in who I was and what I was doing. All the people that I had spoken with earlier now seemed to have a total change of opinion and warned me off investing in the town and to be honest it's taken the enjoyment from my purchases.

Now I can't say that I have encountred problems yet, however it seems everyone is very must against the town despite the great annual returns, provided things run reasonably as planned. Capital gains are not a major concern for me, it's all about cashflow and I'm hoping things go smoothly to a some degree.

I guess what I have been trying to gauge is whether the properties I've purchased are worth holding onto for the long term or cleaning them up and popping them back onto the market in a short while once a tenant is in place and the yeild makes sense for an investor. Although with all the towns critisism it seems like people are just completely off the place as an investment.

Yes, to those who've asked, I did buy two in Leeton NSW and things are going along well, extremely well actually, despite there also being next to nobody discussing the town on this forum. I also own a bit of property in Hay NSW and again they perform fantastically yet the town is rarely discussed.

I hope this clears up my situation and I can gain some input into what to do with my situation and/or in time I can share my experiences with to help fellow investors.
 
seriously, you paid a mere $60k and below market as you say,

worst case scenario, fix up the bits you need for $5k to and put it back on the market and sell it for $95k

if you struggle to find a tenant, do it up and sell it off

if you do find a tenant at 12-15% yield, you could easily sell it for 10% yield on purchase price,

I think you will be ok, and you are over analysing it a bit
 
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