What's wrong with Lithgow?

[C-mac]

That's what I'm thinking, coastal.

I am looking to add some yield-based properties to my portfolio; ones that are secure, but not necessarily 'superstar' value holders.

Plus I like the idea that many of the properties in the inner town centre would be heritage-likely (would need to do due diligence on that of course). The town does have a rich history and so many late 1800's/early 1900's semi's and small cottages. I'd imagine that many of these would be heritage-protected.

 

[WattleIdo]

It's a no-brainer C-mac. Thanks for the investigation.
But shhhhh

 

[Starofdavid]

I'm not an experienced investor but looking at Lithgow the rental income doesn't seem high.
You can rent modern 3 bedroom houses for average $240 week.

I can't see spending average 250k for a house to receive rent of 230/250 a week minus the agents fees Rates etc is a good return?

There's one there I looked at a modern 3 bedroom for 270k and currently rents at $240.
Seems to be an oversupply of rental properties?
My main concern is that Gaol /Pridon closing up !
I guess most of the renters would be single mums with boyfriend in the nearby jail.?
I possibly would consider it BUT if that jail gets closed up by this NSW Liberal Govt who has either privatised or closed up the other jails then values may go down.

They closed Grafton and Cessnock recently .

There are a few units there under 200k but whether they will appreciate in value I don't know.

 

[Jake Milne]

I own two properties (Shaft St / Calero St) in Lithgow but I still wouldn't recommend it for an investment area.

The local economy struggles, shop rents are high and revenues are low. Nearby industries are either closed or closing (coal mining, small arms production, spring water, etc). The hospital is facing more cutbacks. The gaol is operational but I feel that it detracts from the areas desirability rather than improving it. The RMS (Previously RTA) has been closed recently despite the government promoting new offices in Lithgow (like the ATO branch that opened several years ago).

Population growth is basically stagnant and the council is doing little to encourage people to the town. There have been some house and land rezonings so housing development is keeping the chippies, plumbers and electricians busy but this is also counterproductive as new housing stock is taking away from the level of demand that could be there if the council restricted approvals.

Can't see any real benefits of buying in Lithgow now other than reasonable rent and vacancy rates. That being said be careful of who you let out to; Lithgow has drug related (weed and Ice) issues now.

Katoomba, Orange or Bathurst are much better towns to research.

 

[WattleIdo]

^^^^^^^


Meanwhile, the ESOL section at TAFE is bursting at the seams....

Good news about the goal closing. I didn't know that.

 

[Jake Milne]

Sorry Wattle, I think you need to re-read my post. The Gaol is operational and staying so.

Cheers.

 

[Highlygeared]

I own two properties (Shaft St / Calero St) in Lithgow but I still wouldn't recommend it for an investment area.

The local economy struggles, shop rents are high and revenues are low. Nearby industries are either closed or closing (coal mining, small arms production, spring water, etc). The hospital is facing more cutbacks. The gaol is operational but I feel that it detracts from the areas desirability rather than improving it. The RMS (Previously RTA) has been closed recently despite the government promoting new offices in Lithgow (like the ATO branch that opened several years ago).

Population growth is basically stagnant and the council is doing little to encourage people to the town. There have been some house and land rezonings so housing development is keeping the chippies, plumbers and electricians busy but this is also counterproductive as new housing stock is taking away from the level of demand that could be there if the council restricted approvals.

Can't see any real benefits of buying in Lithgow now other than reasonable rent and vacancy rates. That being said be careful of who you let out to; Lithgow has drug related (weed and Ice) issues now.

Katoomba, Orange or Bathurst are much better towns to research.

Love your brutal honesty Jake despite having IP's there yourself.

 

[C-mac]

Thanks everyone for these valuable insights. I'll do a little more digging but noted on the drivers/struggles mentioned for Lithgow.

 

[WattleIdo]

Will be interested to see how you go. Maybe leave it on the back burner for a while?
I do respect Jake's opinion.
The town is on the lee side of the mountain. But it obviously gets plenty of rain.
I knew someone who bought a property there and I asked why. He said it had already grown. He and his partner put some artistic effort into it.
Then they sold it and bought into Blackheath just before Blackheath took off.
In the past, people used to say that no-one could stay in those areas because of the clouds and the rain. Someone posted that it's like a Welsh village - I kind of agree.
Anyway, I'm not ready to buy there but I'm definitely keeping an eye on it. I was looking in 2012 and there were some great bargains then - not so many now. Last time I did a drive-by I saw a few renos going on.

 

[Shahin_Afarin]

I own two properties (Shaft St / Calero St) in Lithgow but I still wouldn't recommend it for an investment area.

The local economy struggles, shop rents are high and revenues are low. Nearby industries are either closed or closing (coal mining, small arms production, spring water, etc). The hospital is facing more cutbacks. The gaol is operational but I feel that it detracts from the areas desirability rather than improving it. The RMS (Previously RTA) has been closed recently despite the government promoting new offices in Lithgow (like the ATO branch that opened several years ago).

Population growth is basically stagnant and the council is doing little to encourage people to the town. There have been some house and land rezonings so housing development is keeping the chippies, plumbers and electricians busy but this is also counterproductive as new housing stock is taking away from the level of demand that could be there if the council restricted approvals.

Can't see any real benefits of buying in Lithgow now other than reasonable rent and vacancy rates. That being said be careful of who you let out to; Lithgow has drug related (weed and Ice) issues now.

Katoomba, Orange or Bathurst are much better towns to research.

Excellent post Jake.

 

[WattleIdo]

It's still here.