SaimaQMember@SaimaQPost count: 6
I am married to a man who always encourages others to invest in property market but never had the time to take the plunge himself. So now i have quit my job and have decided to go the whole nine yards on the advise that have benefitted his freinds… I guess i will be the workforce while he is the brain (very hard for me to admit).
Currently we have spotted growth potential in Wallan area ( north of Vic) after Craigieburn. As there are new schools and new railway line underway.. Lots of new house and land packages are also on offer but old houses can still be bought with large land making it potential for subdivisions.
We are planning to buy a house, move there, renovate, subdivide, sell half the block and use the equity on the house for futher developments…
I just wanted to know if anyone has any input on investing in regional areas is a good idea? or maybe someone has any positive or negative information on this perticular suburb?
P.S…. This is my very first time entry on any forum i am normaly just a reader, Please be nice
Appreciate any replies…L.A AussieMember@L.A-AussiePost count: 1,488
One of the I.P's I own was spotted in an area that no-one seemed to have noticed. It looked good to me, but because there was not a lot of interest I kept thinking "what is wrong with the place?". It was classic second-guessing.
I ended up buying it anyway and was very nervous about it; wondering if I had made the right decision.
It turned out that I did, thankfully.
If you have done your research and you believe it is a good future area for investment then go ahead. Trust your judgement and commit.
No-one ever got ahead without taking some calculated risks.
I grew up in Deniliquin, NSW and used to drive through Wallan every couple of months on the way to visit the folks. I know that it is now within commute distance to Melb and is going ahead gradually. Go for it.SaimaQMember@SaimaQPost count: 6
Thanku Marc for your advise, it surely seems like a great buy … but to be on the safe side we r getting the building inspection done as i am wondering the same thing that why has the Vendor dropped $15000 and accepted our offer.
I will continue to post my progress here it may help someone just as this forum has given me heaps of information.
SaimaneiljoyceMember@neiljoycePost count: 4
New to this forum and have been reading with interest all the information that goes back and forth. I am actually embarking on a business that will seek out suitable properties for prospective investors. The reason I am going down this track initially is to satisfy my passion for property and hopefully put myself in a positon to begin buying for myself. What I would like to know from forum members is what your wish list is for a service like this – what services would you use and what information would you want landing in your email/fax or whatever, to assist you in making a quick decision about purchasing an investment property I have found.
Hope you dont think I am a bit cheeky but what better people to ask than the members of this forum.
Thanks to all for your assistance and I hope I will be doing business with all of you soon!!
NeilbornluckyParticipant@bornluckyPost count: 6
Full marks for going for it.
Personally myself, I would not buy from anyone who has not bought themselves and I like to do the research myself.
I think other people would find it very helpful.bennidoParticipant@bennidoPost count: 195
I have a number of +ve cashflow properties in regional areas and since I live in Melbourne, all of them are in Victoria.
They've all done very well and look after themselves (actually by ppty mgrs) with little or no effort from me. There's even been a little capital growth but not as much as in the cities. But I don't mind as income is what I am after.
Best thing is that they were +ve from day one without any work needed to be done. I'm a big fan of buying solutions as I value my time a lot. If I can get 10% – 15% nett COCR without doing anything (other than making the purchase!), then I am contented.AmandaBSParticipant@AmandaBSPost count: 549
Great advice from Marc by the way. I grew up on a farm in western Vic so know the area quite well. Its always worth a trip to visit your local Council to investigate whats happening in the area or visit their website http://www.mitchellshire.vic.gov.au/index.asp?h=-1, perhaps also have a look at the updated ABS statistics online.
Do your research to reduce your risk and then have a go, you'll never look back!!Richard TaylorParticipant@Qlds007Post count: 11,215
Just out of curiousity if you have given up work I assume that you currently have no income.
Where you intending to try and get Bank finance for these deals as the post codes would not be acceptable for Nodoc lending.AshiParticipant@AshiPost count: 1
just wondering how you went with your purchase? i am currently looking at buying a property in wallan as well and putting it up for rent….
ashi.JD86Member@JD86Post count: 52
id also be interested to know how your property is going, as im a wallan resident and building a new home theremarx3bullMember@marx3bullPost count: 86
If you wish to invest in property then be very careful. Make sure about the original price of the property first.jenniferhudson75Member@jenniferhudson75Post count: 10
If you're buying a property to use as a residence, what's most important to you is that you enjoy it like a real home. After all, you're not looking for additional income — you're looking for a place to live. While you're at it, though, you should make sure to take advantage of the financial opportunities owning a home can bring. Decision-making is perhaps the hardest step to get over with in your quest to begin the journey. The problem is until you do not delve deep within yourself to unlock your innate qualities, chances are that you will be indecisive and hesitant. This is not wrong as such, but more often than not, this 'feeling' may not allow you to maximize your full potential.
There is no secret to unleashing your full-blown potential — the 'secret' lies in your willingness to listen to your inner voice. The initiative to seize a good opportunity that comes your way is by undertaking the task in a methodical way. I think you have the talent, you just have to develop confidence. May I suggest you visit sites (like http://thewealthcollege.com) to aid you in your judgments. I hope this would be of great help to you…
great to see other people buying somewhere other than " within 15kms of Melbourne". Have just bought a property in Colac (1 hr from Geelong) that was dirt cheap, can value add and is paying for itself. After finding this little gem I wouldn't hesitate to go regional as long as the population growth is happening and there are facilities, transport links etc. Regional is great, less auctions and longer times between sales means being able to negotiate a great price. Be great to see how you all go with Wallan. Keep us posted. Bornlucky I'm with you, I like a bit of research and would also question why someone had no properties yet could find me a great IP.
DWolfeenaajaMember@enaajaPost count: 26
I too have purchased all my invest properties in reginal vic Moe in Gippsland region.
Great yields and there has been some captial growth even in the downturn.
Best way to go I think.
I too am interested in positive cashflow properties. I have been debating in my mind for a long time, wether to go for reginal areas.
I have some concerns for reginal property, maybe some of you that have property in that sorta area can quell them for me.
1, hard to get finance, – need bigger deposit
2, vacancy periods, how long, how hard is it to get a tenant.
3, Slow Growth, in rent and capital appreciatation.
4, Maintenance issues- as in a small country town, there may be only one or two handymen around, also supplies might be more expensive or not available.
5, Higher management fees, higher cost associated to inspecting the place ( not really a concern, i have one place at maroochydoore i havnet seen for 4-5 years)
Could someone please tell me how to identify a growing town? how can we know. since, if the schools and roads and other infrustructure has been built, the horse has already bolted, that means that we are too late. the price rises have already happened.
Im been such a city person for so long, thats all i know. someone has to take me back to the slow quiet and peacful life of country.
Thanks in advance.
Well with the regional IP we bought we looked at the population and made sure there was enough industry etc to sustain growth and that it wasn't just one industry (mine, or one company). The population was a decent size 12,000 people. When we google eath'd it there was a coles, Maccas few other big names, so they had put their money there. There was a lake and 40 mins to the great ocean rd tourist spots so there were other things around to do. There were also new units being built so money was starting to go into new housing, regeneration etc.
The main freeway is still in the process of being constructed so that was good for us.
Management fees are roughly 7.7 inc, so whatever I'm happy with that. I haven't don any work to mine even though it needs it which will be after Christmas so I will experience the tradesman thing then. I think in a small town while the availability of tradesmen might be a bit lower the prices will also be a bit lower.
I bought well below the median house price in the area of $200k ($128) coz it needs work (Bout $10k) So the growth will be there. But even so now after looking on the net there is not much really cheap stuff going so hopefully the market has already started to get going.
Our process wasn't very scientific we just looked at everything under $200k then worked backwards to investigate the town and the rest to see if it was viable.
Hope this helps, it's all about getting out of your comfort zone. Also going for a 2 hr drive to woop woop helps
All sounds good.
The only major concern is finance, Now i am going thru a tough time tyring to get finance for student accommodation in the heart of Sydney. They were going to lend me 70%, then my broker said that it might not go thru and we went for a lowdoc, only 60% LVR. I have had to pore alot of money into this deal. More than i would have liked.
So, If i need money to do these reginal property investments, whats my strategy??? I have got 4 IPs at the moment, 5th on the way. but cash poor after this one. Does anyone have the answer to this secret??
Whoa, you got 80% finance??? Thats cool, which banks allow that in regional areas, im guess with the range of institutions around these days, there will be a specialist lender for that niche market right???
Gosh i really want to get this happening, I have used up all of my equity over the years for other business ventures, so i dont have much left in the kitty.
Partnership?? nah, not unless its a big enough project. wouldnt be worth the hassle in my mind. Im thinking the 1 mil mark before i get a partner involved, but thats just me.
I dont really want all that paper work to split 150k.
Im also thinking of another strategy, that goes something like, save up a large sum of money and find a desperate seller/urgent sales, be in the position to buy the place cash. so for places like that, 128k, cash it, but since we dont have to go thru finance, we can hurry up the process and that may be a we want a big discount, and we offer something like 90k, then we have a margin. We choose to do what we want with it, take the higher return, save up again for our next purchase, or flip it.
again, we would be targeting desperate sellers that need the money in a hurry, and just want to off load their place.
( im really tired and might not be thinking straight, i may edit this in the morning)
Hey just found this now…..Yeah 80% Bank of Adelaide. Get a broker. There's plenty on here! We offered a quick settlement coz there was an existing tenant in it who was happy to sign on for another 12 mths. This property had been on the market for a year, so I think they were glad to see the back of it! Let us know what ur doing I probably wouldn't chuck down 90k on a shack I'd spread the love around a little! And there's nothing like a Friday afternoon deal, no one wants to go over the weekend if it is a cheepie!
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