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  • Profile photo of Glen_BGlen_B
    Member
    @glen_b
    Join Date: 2012
    Post Count: 3

    Hi Everyone
    Im new to this site, had a chance to browse through a lot of the forums and the information is excellent.

    Was going to get an opinion on my situation if anyone wanted to give their advice. I have 40k avaliable to myself and was looking to invest it in a regional property. I had places like Wellington, Junee, Kempsey in mind. I currently have a property with approx 60k equity, but did not want to touch that at present.

    Has anyone got any opinions on regional areas? Or should i try and stick to more populated areas closer to sydney such as wollongong?

    Thanks!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Glen

    Welcome aboard.

    I can't comment on those particular areas. The Herron Todd White month in review usually has a write up on regional areas which you might find useful- http://www.htw.com.au/Month_in_Review/Month-In-Review-May-2012.pdf

    Is there a particular reason why you'd prefer to use your own cash rather than equity? At least the latter will be tax deductible and you can keep your cash stored in an offset as a "contingency" fund.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Glen_BGlen_B
    Member
    @glen_b
    Join Date: 2012
    Post Count: 3

    Thanks for the reply Jamie.
    I wasnt going to touch the equity as i was told that using my personal funds is a better option. This being my first investment, its all new to me so was getting advice from different people.

    Ill look in to that option that you mentioned Jamie.

    Thanks again.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Glen

    Cashflow is important in property investing. Personaly, I view using the banks money (which is tax deductible) and preserving my own own savings as a risk mitigation strategy.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    Hi Glen,

    I am liking Wellington at the moment. Cheap entry price. You can buy 2-3 bed homes that need a bit of work for around $60,000 – $70,000 with a rent of $130-$150pw. Its a decent sized town 45min from Dubbo and 1 hour from Orange.

    I spoke to a few locals in the area and there are quite a few people moving to Wellington from Dubbo and Orange as its much cheaper and then commuting back for work.

    With Dubbo and Orange already going up in value, there could be potential for Wellington to follow until then collect the good rents.

    Engelo

    EngeloRumora | Ohio Cashflow
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    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    Glen_B wrote:
    I wasnt going to touch the equity as i was told that using my personal funds is a better option.
    Thanks again.

    Listen to someone else!!!!  (like Jamie).

    You can save about $1000 a year by NOT using your cash..

    Profile photo of Glen_BGlen_B
    Member
    @glen_b
    Join Date: 2012
    Post Count: 3

    Hey guys thanks very much for all the information…. makes decisions a lot easier

    Profile photo of stacey andersonstacey anderson
    Member
    @stacey-anderson
    Join Date: 2012
    Post Count: 3

    Hi Glen,

    Investing is the way to go to secure your future and regonial is certainly a great option. If you look at areas that have fantastic growth potential you won't go wrong. Go onto prd nationwide research and you can get free data on any area you like. Look at things like infastructure, demographics and rental market returns. I live and work in Orange NSW and we could certainly use some investors out here. Our economy is underpinned by the mining industry, health services and agriculture and this all creates fantastic job opportunities but also a shortage in the rental market. <moderator: delete advertising>

    Cheers,
    Stacey

    Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    I understand your point that Wellington is a good entry point becasuse of the price is low. but Wellington according to ABS stat is only about 4500 population.

    what's your property search criteria for population ?  I heard some people say don't go to the population lower than 10,000.

    just want to hear some experienced investor in the regional town what's they thought about low popluation and potential  

    TaylorChang | Finance Broker
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    Profile photo of stacey andersonstacey anderson
    Member
    @stacey-anderson
    Join Date: 2012
    Post Count: 3

    Might be good to look at crime rates when you're choosing an investment area…just a thought.

    Cheers,
    Stacey

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    A minimum population of 5000 people is ok as long as the numbers work in the deal.  I always say that every deal is good as long as the price is right. I like to see fast food outlets or Bunnings/Mitre 10 in town and I guess its more secure to have a population of 10,000.

    I would buy properties in Wellington for $50,000 all day long.

    Engelo

    scha9799 wrote:
    I understand your point that Wellington is a good entry point becasuse of the price is low. but Wellington according to ABS stat is only about 4500 population.

    what's your property search criteria for population ?  I heard some people say don't go to the population lower than 10,000.

    just want to hear some experienced investor in the regional town what's they thought about low popluation and potential  

    EngeloRumora | Ohio Cashflow
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    F@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    Personally, I’d stick towards more populated areas (like you said, Wollongong). Pretty sure that its value will start to increase as the area becomes more populated. Good luck though!

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Small towns increase your level of risk. Make sure you increase the amount of research done if you are looking at smaller towns.

    Profile photo of shawnfromsydneyshawnfromsydney
    Member
    @shawnfromsydney
    Join Date: 2012
    Post Count: 11

    Hi fokes,

    Further to Glens question, has anybody had any experience with flats that can be strata tiltled in mining or regional areas?

    I have reschered a few towns in central QLD and central NSW that have these sort of offers for under $100K for the full building of 4 or 5 flats.

    I feel that I should be able to raise $150K loan, as this is my maximum any bank will let me touch at the moment, and then I was thinking of doing an option, and then getting a DA.

    Once the DA comes in going back to the back to raise more capital for the renovation costs and then selling off each unit for a profit.

    Has anybody done anything like this in the regional areas?

    Thoughts?

    Profile photo of shawnfromsydneyshawnfromsydney
    Member
    @shawnfromsydney
    Join Date: 2012
    Post Count: 11

    Glen,

    Further to this where are you from?

    I am based in Sydney and I am setting up a property investing group of like minded people from this forum, that are new to this that can meet once a month, with some people from this forum that have a bit more experience.

    Nobody would be allowed to sell anybody anything, it would all us meeting and showing the others what we have been doing and asking questions.

    Would you be interested?

    Message me here if your are keen and I will come back to you by next weekend.

    Thanks

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    Were you referring to this one as the central NSW flats???

    http://www.realestate.com.au/property-unitblock-nsw-wee+waa-110512237

    Engelo

    shawnfromsydney wrote:
    Hi fokes, Further to Glens question, has anybody had any experience with flats that can be strata tiltled in mining or regional areas? I have reschered a few towns in central QLD and central NSW that have these sort of offers for under $100K for the full building of 4 or 5 flats. I feel that I should be able to raise $150K loan, as this is my maximum any bank will let me touch at the moment, and then I was thinking of doing an option, and then getting a DA. Once the DA comes in going back to the back to raise more capital for the renovation costs and then selling off each unit for a profit. Has anybody done anything like this in the regional areas? Thoughts?

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    F@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST

    Profile photo of antoniamrljak.comantoniamrljak.com
    Participant
    @antoniamrljak.com
    Join Date: 2012
    Post Count: 4
    stacey anderson wrote:
    Hi Glen,

    Investing is the way to go to secure your future and regonial is certainly a great option. If you look at areas that have fantastic growth potential you won't go wrong. Go onto prd nationwide research and you can get free data on any area you like. Look at things like infastructure, demographics and rental market returns. I live and work in Orange NSW and we could certainly use some investors out here. Our economy is underpinned by the mining industry, health services and agriculture and this all creates fantastic job opportunities but also a shortage in the rental market. <moderator: delete advertising>

    Cheers,
    Stacey

    I am glad that I found something relative to my post about orange! not getting any response, it might be an over commented on question- it’s the first time we invested in a property and even though we did the research it still makes me a little worried…

    Profile photo of PISTOREPISTORE
    Member
    @pistore
    Join Date: 2012
    Post Count: 75

    Hi Glen
    Just wondering why you were limiting yourself to areas like those you listed.
    Depending on your income, you could look at far Bette options with your deposit.
    It really depends on what you want, growth or income or both.
    Those areas are ok, but they aren’t as good as others that will get you far better returns in a lot shorter time frame.

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