All Topics / Help Needed! / Investing in Broken Hill

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of lfjrlfjr
    Member
    @lfjr
    Join Date: 2012
    Post Count: 4

    Hi all,

    Currently looking at acquiring a high yield property to offset a couple of other properties and was considering Broken Hill. Has anyone got any experience or provide any advice? Having had a quick look, you can easily get a property there for around $60,000-80,000 generating rental income of around $150-200. To good to be true? I am obviously concerned about the longevity of the town seeing that the mining industry seems to be slowing and do not know what demand is like for rental property?

    Alternatively,is anyone aware of any other high yield areas that might be safer?

    Francois

    Profile photo of HomeLoanExpertsHomeLoanExperts
    Participant
    @homeloanexperts
    Join Date: 2007
    Post Count: 43

    Last I heard of Broken Hill was that it's days were numbered. Personally I wouldn't invest somewhere that may be a ghost town in 10 – 30 yrs time.

    Some banks specifically have restrictions on lending to Broken Hill, that tells me all I need to know.

    If you are going to invest there then assume the value drops to $0 over 30 years and if your investment strategy works from just the rent income then there may be some merit to it.

    Profile photo of bb2000bb2000
    Participant
    @bb2000
    Join Date: 2012
    Post Count: 4

    Broken hills banks restrictions have been lifted by i would only live there not invest.. there is 500 properties for sale right now..
    most properties under 100k will need at least 20k spent on them to clean them up and modernize them..
    also 60% own out right up there..
    hope this helps..

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

    Personally, I would look elsewhere – cheap doesn't mean good.

    You can get decent yields closer to civilization.

    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 Ichiban33Ichiban33
    Member
    @ichiban33
    Join Date: 2012
    Post Count: 8

    I agree with the everyone else above – I really think the days of Broken Hill are numbered.

    Profile photo of lfjrlfjr
    Member
    @lfjr
    Join Date: 2012
    Post Count: 4

    Thank you all for your input, by the sound of it the general consensus is to stay clear of it, which is what I was already thinking anyway. Just wanted a second opinion and check if anyone had a different perspective on the matter.

    The job of finding a good, high yield investment property goes on…. Any ideas welcome :)

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    What's your definition of high yield? Are you talking about net or gross yield and what about capital growth?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

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

    What's your definition of good?

    There's plenty of high yielding properties out there. Some come with an element of risk – ie. mining towns whilst others may attract limited growth – ie. Broken Hill.

    I actually like my neck of the woods for IPs – Canberra. The yields are quite good – especially for entry to mid level stock and the historical growth has been strong and consistent. The buy in isn't that cheap though – you'd need to look at spending at least $400k.

    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]

Viewing 8 posts - 1 through 8 (of 8 total)

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