Would you buy this

[engelo10]

Hey guys,

I have come across quite a few properties in regional NSW. The towns have a population greater than 10,000 people. The properties can be purchased between $100k-$130k and would rent for between $180-$220 per week. What do you think of these deals as a buy and hold? Thanks for your time.

Regards,
engelo10

 

[Puma1355]

depends on the town...

 

[engelo10]

Hi Puma1355,
Thanks for your reply. What regional towns would you consider as good buying?

engelo10

 

[wobbycarly]

depends on the town...

Hi Puma1355,
Thanks for your reply. What regional towns would you consider as good buying?

engelo10

Without wanting to put words in Puma's "mouth", the sorts of things to consider with regionals are:
- population growth. There may be >10,000 now, but is that changing up or down?
- industry. Is there a seasonal or single industry? eg, harvest might bring an influx; a local processing plant/factory/mine could close. What impact would this have on the rental demand?
- vacancy rates. No good having a "potential" rental of $180-$220 if you're competing with many other properties.

Hope this helps.

 

[engelo10]

thanks wobbycarly,

any response is a good response. IMO I tend to look at the major outlets such as Maccas, Bunnings, Woolies, etc... if they set up camp in town (knowing how much they invest in research) that should elimate quite a bit of doubt regarding the towns status.

 

[Jamie M]

The properties can be purchased between $100k-$130k and would rent for between $180-$220 per week. What do you think of these deals as a buy and hold?

Is it Wagga? Sounds like some of the ex DoH stock in Ashmont, Tolland, Kooringal that can be picked up for low-mid $100s and rent for $220 - $250 p.w (often in need of a reno).

Cheers

Jamie

 

[engelo10]

yep sure is. Wagga Wagga, Tamworth, Albury. They seem like good buying to me. I know these cheapies were selling for $40k 10 years ago in Albury.

 

[Property Trader]

Hi Engelo10,

With properties in regional areas that are obviously quite a distance away from where you are at the moment, you might want to consider the maintenance issues in relation to the property going forward. Maintenance issues can be pretty costly for rental properties if your strategy is the cash flow and not capital growth. You might be paying a premium on tradesmen and also on Property Management because it is located in an isolated spot. I mentioned this because we used to have a rural property with the maintenance centre significantly more expensive than our metropolitan rental properties.

Hope this helps.

Regards,

Jason Moore

 

[engelo10]

Thanks Jason,
The maintenance issue is definetly something to consider. I own 2 properties in Mildura and me being from sydney its not just a quick duck over and see what the problem is. I have been to Mildura over 5 times in the past year and have built a good relationship with a few tradies there especially one carpenter who I can rely on and trust to fix any problem. It takes some time and luck I guess to find someone you can trust that wont just look to screw you for money when a problem does arise.