All Topics / General Property / WHAT RURAL TOWNS????

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  • Profile photo of taylah111taylah111
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    @taylah111
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    I live in Sydney and am having to look hours outof Syd, to find properties that have rental incomes slightly greater than the value, much less potential to make twice that of the purchase price, when you have to go so far out, how do you physically inspect properties? Please help I have 2 months left to buy something and NO ideas.

    Profile photo of CeliviaCelivia
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    @celivia
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    Taylah, this is a good topic to bring up. I live in a Sydney suburb (outer ring) as well, and also find it very demanding to go out to physically look at properties at Rural towns, especially when you have kids.

    I start by looking on RE websites, if I see something good I contact teh RE Agent with questions about the property, if it still sounds good we go and have a look at it. Most of the time they’re not as good as it seemed on the photographs, or you won’t get it for the price you thought, and then it’s driving all the way back home then. Very discouraging.

    I find it’s hard to keep myself motivated and to not get discouraged after these long drives. You could fly to some places of course (extra costs and having to hire a car when you get there).

    Finally we’ve found something, our offer got accepted, and we’re financing it right now. But it’s about 6 hours drive away and still not positive or even neutral cashflow, but better than anywhere else I’ve looked. How much farther do we have to go for CF+??? I really find it very hard to find CF+IPs when you live around Sydney.

    May be I’m still looking in the wrong areas, but I don’t want to buy in places that have a less than 10,000 population.
    I hope other people will have some good ideas for Taylah since I haven’t been of any help! Sorry Taylah.

    Profile photo of enduserenduser
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    @enduser
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    I too, am looking for similar. I have found that web-site listings are poor because many of the properties are not taken off when sold. My best source has been the local town newspaper if there is one. The supplements are timely and have better pics.

    The best way of all is to nail down your area and go and see agents personally AND MAKE THEM UNDERSTAND that you can sign up right now if they have what you want. If you are specific they will remeber you and call you if something comes up.

    Others are looking too, so leave some sort of impression with them so they will remember you – you know, use “that voice”, trip over in their office, something completely normal but memorable. many will never call but you only need “that one”. good luck.

    Profile photo of westanwestan
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    @westan
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    hi guys

    enduser yes those site are behind, part of the problem is they are left on until they have settled which can take 4-8 weeks. the agents leave them on just in case the sale falls over.
    I think you are right about the personal approach. Guys so many properties are sold now days before they even get to be advertised. agents need to know you are a serious buyer and not one of the thousands of “looker” they get every month.
    Make sure you have finance already approved and know the area so you can move quick and make a decision.
    regards westan

    Profile photo of muppetmuppet
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    @muppet
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    Hi Taylah

    I know of one forumite who travelled 1800km by plane, hired a car and travelled another 1000km, inspected many properties, talked to many RE agents and property managers put in many offers and then travelled home a week later being the satisfied owner of about 8 properties.

    This forumite also has I think bought a few properties sight unseen but has had the properties inspected by a builder first and has made his decision then.

    The key point is, this forumite does his RESEARCH first and then decides whether the figures stack up before making his decision. If they don’t then this forumite walks away from the deal.

    Regards

    Profile photo of KateGKateG
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    @kateg
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    Hi Tayla,
    I drove 800km in a day and found our first property. But it was all worth it!! Now because we have bought a property, the agent is now a great contact and is letting us know of properties on the market, before they are on the net or in their windows. So it really is worth a drive, even if it is to start a relationship with an agent, so that they can be looking for you, which saves you time.
    Agents get calls all the time from window shoppers, and they don’t really have a reason to show loyalty to them. But if they meet you, know what you want, and know that you want many, they will help you out.
    Firstly, as everyone has said, do your research on the net.

    Good luck
    Kate [:)]

    Aim for the moon, even if you miss you will end up amongst the stars!

    Profile photo of brownbearbrownbear
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    @brownbear
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    Yes,I have to agree with the difficulaty in finding + geared properties. I too find the 11 second rule has nearly all properties not within a ‘bulls roar’ of being positive. Those that I do find nead a lot of repairs etc.
    I would also kike to know a list of 1 to 10 of the features that one looks for in obtaining a + gear property if the figures stack up. Just interested to see what things other look for in a property.

    Regards
    MCB

    Profile photo of westanwestan
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    @westan
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    Hi brownbear

    not sure i can give you a 1 to 10 but here are a few important extras

    1 the potential for capital growth, this is where the big money is made. with Capital growth you can refinance the property and then buy more properties. i like to look for areas with new developments (often new industries are moving to. For example the Mineral Sands project in Hamilton Vic.).

    2 That i am buying under market value. As Robert Kiyosaki says “the profit is made when you buy not when you sell”. if you can buy at 10k below market you have done well.

    3 the potential to add value to the property. this is only an advantage if work can be done that will greatly increase the value of the home. Somethimes just a new coat of paint can add thousands more than the job done.

    4 the potential to increase the rental income. Is it under valued now. Or can improvements be made to increase rent. eg an aiconditioner may add 10pw. therefore you have paid of the cost in 1-2 yrs. Giving you a 50-100% return on your money.

    5 The rental demand for an area. the last thing you want to do is buy a property that will not be rented.

    6. the ability to easily offload the property if i have too. It is a personal rule to buy in towns of over 5000 people, occasionally for special situations i break my own rule. it worries me people buying investments in very small towns.

    7 The rest would have to do with the condition of the property, things like low on going mainenance costs, overall soundness of the structure.

    That’s about all i can think of got up to 7. anyone what to finish off the next 3?
    regards westan

    Profile photo of wannabe2wannabe2
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    @wannabe2
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    [:)] hi guys i too have had to travel up to 1600 km’s in a day to find properties,but when i bought one for 30000 under value with a long term tennant i thought it worth the while[:D] i just did the same journey 2 weeks ago and came up empty handed but was prepared for that and used the time i was there wisely.[xx(] you have to be prepared to act if something comes up and quickly.

    Profile photo of wannabe2wannabe2
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    @wannabe2
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    quote:


    Hi Tayla,
    I drove 800km in a day and found our first property. But it was all worth it!! Now because we have bought a property, the agent is now a great contact and is letting us know of properties on the market, before they are on the net or in their windows. So it really is worth a drive, even if it is to start a relationship with an agent, so that they can be looking for you, which saves you time.
    Agents get calls all the time from window shoppers, and they don’t really have a reason to show loyalty to them. But if they meet you, know what you want, and know that you want many, they will help you out.
    Firstly, as everyone has said, do your research on the net.
    kate g please could you get in touch with me via email [email protected] re earlier posting thanks[:)]
    Good luck
    Kate [:)]

    Aim for the moon, even if you miss you will end up amongst the stars!


    Profile photo of craigccraigc
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    @craigc
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    Quote:
    Hi Celivia
    I do not mean to butt in as this is my first post, but I’m interest to know why you do not want to buy a property in a town with less then 10,000 population. I moved from Sydney 13 years ago into such a town and have not looked back. My wife a I purchased a small farm for $52,000.00 in 1989 & only had it valued last month for an investment home that we are purchasing in a town only 60lkm’s from where we live. the valuation was $360,000.00. As you can see It may be worth a closer look at some small towns, specially the ones near the larger rural centres.[?]
    Regards craigc.
    Profile photo of westanwestan
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    @westan
    Join Date: 2002
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    hi all

    the 10,000 population rule will restrict you from a lot of really good deals. Normally i only buy in towns of 5,000 or more. Earlier this year i found a house for my brother that was $27k and let at 100pw. it was in Murtoa Vic and 30km from Horsham (pop 12,000). it was in my opinion a great return for his money (i should have bought it) about 38% return on his money when putting in 20% and financing the rest. by the way the house is now worth 40k (six monmths later).
    i recently broke my own 5,000 pop rule and bought in a town of about 3,000. i did this because the town has no vacant properties and a new development is about to take place nearby that will create 500 jobs, so i thought it was worth buying in.
    so in summing up i don’t exclude deals because they may not fit a criteria i have but consider each on its own merit.
    regards westan

    Profile photo of EcclesEccles
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    @eccles
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    I posted this in town size too! I apologise for doubling up

    We used to live in Geurie which as I have said before is a tiny village located between Dubbo and Wellington when we purchased ($95000) to rent there for a decent house was about $200 -$250 and when we left prices had jumped to $130,000.
    The prices have increased and so has the rent side it is convenient place to live especially when you were like us and one person worked in town and the other in the other town.
    I think people discount those small towns too quickly when we purchased in QLD we went to a small town again and already the prices have increased and I am telling you none of these villages come within cooee of the population above 10,000.
    Seek and ye shall find!

    Bronwen

    If the good die young then I will live forever

    Profile photo of CeliviaCelivia
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    @celivia
    Join Date: 2003
    Post Count: 886

    CraigC, thanks for your reply. The only reason that I didn’t want to invest in places with a population less than 10,000 is because many people keep telling me this is high risk, hard to find tenants, low CG etc.

    I’m glad this forum thinks differently, it helps to see that others, like you, Westan and Eccles, have something positive to say about small towns and have had good experiences.

    So now I don’t mind investing in smaller towns, in fact you gave me new motivation and encouragement and I’m more excited about looking for properties again! So thanks for your positive criticism about my thinking of small towns as no-nos.
    [^]

    Profile photo of FreedomSeekerFreedomSeeker
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    @freedomseeker
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    Post Count: 2

    I’m just wondering if anyone in this topic has an opinion on any rural centres in SA that might be worth looking at? [:D]

    Profile photo of taylah111taylah111
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    @taylah111
    Join Date: 2003
    Post Count: 10

    quote:


    Hi Tayla,
    I drove 800km in a day and found our first property. But it was all worth it!! Now because we have bought a property, the agent is now a great contact and is letting us know of properties on the market, before they are on the net or in their windows. So it really is worth a drive, even if it is to start a relationship with an agent, so that they can be looking for you, which saves you time.
    Agents get calls all the time from window shoppers, and they don’t really have a reason to show loyalty to them. But if they meet you, know what you want, and know that you want many, they will help you out.
    Firstly, as everyone has said, do your research on the net.

    Good luck
    Kate [:)]

    Aim for the moon, even if you miss you will end up amongst the stars!


    Profile photo of taylah111taylah111
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    @taylah111
    Join Date: 2003
    Post Count: 10

    Hi Everyone, thankyou for your input, its encouraging to know that others are in the same boat. Off to Lithgow tommorrow, so well see what that brings.

    Profile photo of ANUBISANUBIS
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    @anubis
    Join Date: 2003
    Post Count: 559

    I don’t like towns with less than 30,000 population (which probably makes them cities). I started in a backwards fashion recently by going through the ABS website population details to work out which council areas matched this description.

    Now I have quite a few areas to investigate further so its checking for local websites to gauge industry and trends etc, check local agents for purchase cost vs rent.

    Then a visit is in order. Find this works better than a scatter gun approach, but mind you my strategy is not the same as Steve’s or many others. I look for payments to be covered if possible, but if I think it is a bargain and will grow in value I’ll still buy it.

    Profile photo of Agent007Agent007
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    @agent007
    Join Date: 2003
    Post Count: 61

    Freedom Seeker,

    I live in SA too.

    Go to ABS website & print off the population & growth stats form all towns in SA.

    Look at the ones with 5,000 or more.

    Then research each one – RE on website, sales data stats, trends & new developments etc.

    There is no easy way. Just research, get your finance in place, then when you find the +ve cashflow properties (there are a few out there in SA), go out & put your offeres on them.

    Good luck.

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
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    @agent007
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    Post Count: 61

    Oh… & I forgot.

    No everything in RE in online. So call the agents up to find out what is available. And they may tell you of a motiveted vendor about to put there house up for sale.

    Good Luck!

    David Paxton
    “You Only Live Twice”

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