Just thought I'd tell you my experience of visiting Wagga Wagga – I am here right now and visited here (from Sydney) for one day to check out some potential investment properties.
As I am looking for a good cashflow investment, I was left with 2 areas – Tolland and Ashmont. As some of you may know, these are known to be housing commission areas, meaning the yields are generally good due to good price.
The first property I saw was Raye St, Tolland. I drove down Raye St and first saw what looked to be an EXCELLENT street – clean, neat, and well-kept houses and a very good locale. I kept driving and came towards the 'other end' of Raye St and suddenly the Graffiti and 'dodgy' characters started appearing out of nowhere (please excuse the stereotypes). I got some wierd stares coming out at me as I drove past.
After the Agent arrived I walked up to the property and noticed that a window had been recently broken. From behind me a bunch of about 4 youths congregated and told me "you don't want to live here mate, you'll get rolled!". I laughed and walked into the property, and realised they weren't kidding! The interior of the property was excellent and renovated very well, and a tenant already in place. The back yard showed graffiti on the INSIDE gate of the property which was obviously a concern.
After a very quick look I walked out, and made my way to the next property on Callaghan St, Ashmont. While this property was also in a known housing commission area, it did not appear anywhere near as 'dodgy'. The house outside was well kept, and inside was well maintained and looked after. I asked the tenant why he was selling and he said "for a change" and not much else – didn't sound very convicing. Based on everything I saw however, I was pretty impressed with this property overall.
Later in the night I went on a cab ride and talked to the cabbie about what I was doing in Wagga and explained that I was looking at investing on Callaghan St, Ashmont and asked him his thoughts. He said one of his colleagues recently decided to move houses from there due to some minor burglaries – it turned out that the property he was talkin about was the same one I looked at! Crazy co-incidence.
The cashflow on both these properties are v.good (7%+) <– I'm by no means criticising the areas – all areas need to grow and hopefully they will. I eliminated Raye St immediately because the risk profile was too high for me, however made an offer on the Callaghan St in Ashmont (given the issues already described). I am hoping Ashmont continues to improve over time. Alot of properties are being sold to the private market, and during the years I'm hoping that a better group of tenants take over the Ashmont area.
Thanks for posting your experience in Wagga ajay, I found it very entertaining.
The part about tolland made me laugh as I have had similar comments made to myself.
A local lady yelled out at me once “Welcome to Tolland love, I don’t know why the f$&@ you would want to buy here!
The real estate agent didn’t know what to say and just laughed.
Did u put in the offer on the brick house in Callaghan or the fibro one?
It was the brick one – offer wasnt accepted as I made a low offer due to the issues etc in the area. I'm looking at investing probably in the Mount Austin or Kooringal areas as they are a little better (I think) provided the returns are ok.
Sorry to hear the offer wasn't accepted – best of luck next time.
I've got an IP in Ashmont – so far, so good. I haven't had any major dramas with it. New tenants just moved in and the rent just went up $20 per week.
I'm hoping that once the housing comission stock dries up, prices will pick up.
Could I ask which street in Ashmont your is in? And woulld you say its in a roughish area?
AjayTony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
Ajay i looked at properties down that way trying to find cashflow positive properties. I found plenty in Tolland, Ashmont and Kooringal but yeah wasnt sure to proceed with the areas reputation :Sajayayyar wrote:Hi Jamie,
Could I ask which street in Ashmont your is in? And woulld you say its in a roughish area?
Sure. It's Tarakan Ave. I didn't find it rough. I was actually suprised at how "decent" Ashmont actually appeared.
The property I bought was from an elderly lady who took great care of it. The neighbours also seem to take pride in their houses. There is a new retirement village on the street and there's some relatively newish townhouses behind it.
I must admit, I've never lived in the area nor have I spent a great deal of time there. But during my short visit, I found it to be a lot different to what I had in mind.Tony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
From memory, Buna Street seemed to have more of the fibro housing commission homes. Check out google maps and go for a stroll around Ashmont I know there's often some cheapies on that street – still probably rent for around the $220 – $240 p.w mark.
Yeah Tarakan Ave has alot better street appeal than Buna. There are more owner occupiers in Tarakan where Buna has mainly tenants or housing commission so looks pretty let go.mike.12Member@mike.12Join Date: 2010Post Count: 36
I dont know that area,but I bought a property in glenfield park,and it is in mima st ,good area, positive cash flow.jacqui_03 wrote:Yeah Tarakan Ave has alot better street appeal than Buna. There are more owner occupiers in Tarakan where Buna has mainly tenants or housing commission so looks pretty let go.
Yep, that was my impression as well. Do you live in Wagga Jacqui?crjParticipant@crjJoin Date: 2004Post Count: 618
Bear in mind that local prejudices about a particular street or area often are out of date ie if a street had a bad local reputation 10 years ago, the locals possibly perceive that reputation to be current even though the problems might have been dealt with. It can be a good way to make money. I have an IP where a year before i bought I read a comment by an agent saying the particular street had improved and no longer deserved its reputation. I bought there, have a great ROI, average of 2 years per tenant. Even now 10 years later people say X street is the worst in Y town. My only regret i snot buying 2 more in X street in the next couple of years after my first purchase
I lived in Wagga all my life and recently moved to Sydney.
I have 2 IPs there and looking for some more.
I would be interested in Syd as I want to diversify but as I have only been here for 2 months, I’m very unfamilar with what areas I should invest in.
Are your Wagga IPs in any of the areas mentioned above? How have they been performing? Can you recommend a good property manager?
My IP's are in Central and Lake Albert. I have looked at purchasing an ex H.C property but mainly in the area of Mount Austin. I missed out on 2 properties which were sold at auction by H.C last year.
I have owned the 2 bedroom unit in Central since Sept 2008 and it has increased in value by $35k and achieves over 7% rental return. I self manage the property – leased at higher rent then the other units in the complex and the tenant is excellent.
The house in Lake Albert is my most recent purchase (Nov 2010) and very happy with the performance – achieved $65k instant capital growth as we bought under market value, then renovated it to add more value. It is achieving 8% rental return. We have just signed a tenant up for 12 mths and she will be moving in today actually!
How has your IP in Tarakan performed?
Professionals Real Estate manage this property. The unit used to be managed with Fitzpatricks. A friend of mine recommended Eldridge – they are meant to have the lowest management fees and provide good service. Who are you currently with Jamie?
I'm using Ray White at the moment – the new property manager within Ray White that's taking care of my IP is doing a great job. The one that looked after it before wasn't so good. I was thinking of changing to the Professionals but everything seems to be ok now.
I have only been with Professionals for a couple of weeks. My first impression was the pm I was dealing with was fantastic until after I signed the exclusive management agreement. I felt like I had to manage her all the time otherwise there would be errors. She has now left and I have a new pm.
The leasing agent there is very efficient and keeps you informed. They did manage to secure a good rent for me where some other real estate agents estimated approx $20 -$30 pw less when I called around. Although that was over the phone quote not an inspection.
I find it hard to find a good pm in Wagga as turn over in staff is high in this positions.mentobeMember@mentobeJoin Date: 2011Post Count: 5
I have 17 properties in Wagga and the Majority are amoung the Ashmont ,Tolland and mt Austin areas. I started investing 3 years ago with no past investment experience under my belt just severe dissatisfaction with my own life and deep internal scaring from my past upbringing and many late nights reading researching for the first 8 months and working 10 to 12 hours 5 day a week all in aid of working towards funding the investment properties in my future plan to becoming financially independant and 3 chidren to look after, 4 if i am allowed to include my partner even though he is an adult he wasn't acting like one at the time.I had written my plan on huge sheets of paper and taped on a wall in a quiet area of the home in which i admired regularly and only me believing that i could do anything i set my mind to. wow a little to much drinking going on with these late nights reading and researching etc mainly brought on by negative comments from others that seemed to have all the answers to why i shouldn't invest. Looking back i now know why these people are where they are and i am where i am and it has nothing to do with luck .But me, the strong headed up to no good get out of my road attitude that anything is possible and always implying to everyone you first need to have a dream then write it down on paper and back it up with a plan then take action and for no reason what so ever except that it can't be done.i was going to change the world and make it a better place.Wow did i not know what i was in for.This was by far the biggest challenge i had ever taken on .I then started buying and renovating to add value and on top of this i was working a 10 to 12 hour day, 5 days a week.Even my partner was a non believer at first and we had many a fights over this dream but no one not even my partner was coming between me and the dream of a better life.This dream was not just for me but all people that come in contact with me that would whinge about there life and had every excuse under the sun to why there dreams were not possible and i would be the example for them to give up there fight with making up excuses blaming others and living in denial and to be accountable for there lives which they would then make the changes needed in there lives to make there dreams reality to.What a amazing place this world is going to be i would think and how much happier people will be.yeah yeah i know it sounds a little airy fairy but I made it, yep that's right i made it. i have not changed the world of course( just yet still working on this one small steps slow and steady does it) but i have started changing the way people think of themselfs in theses areas for my presence in the areas renovating has touched the lives of these people and changed there lives for the better as they have also touch my life in ways that i find it hard to explain on paper.these people are seen as numbers and beyond help.They talk about the forgotten ones and here we have it going on right under our noses in areas that are labelled as no go zones, and we turn a blind eye to it because we have to put in more then effort and that is beyond even our belief towards helping others for we must lift a finger and it requires effort on our behalf. But to me i believe if i am going to help others instead of changing them first i need to start with changing me first and not just look at these people as tenants but people with feelings and yes the numbers have to add up but these tenants are helping you move closer to achieving your goals to. I over the past 2 years of buying and holding property in these areas have had 3 bad tenants inwhich i had landlords insurance in place and followed the correct procedures needed at the time.I must admit but the first property was very stressful and the second and third become easyier because i was resisting what is which is the reason for a lot of problems in this world.My properties are positive geared and i now earn a income of $1000 a week depending on interest rate changes but my tenants are my reason for my success and i now have my next part of my dream to complete now that i am financially independent this i will keep quiet but you don't know this yet, i already am famous and this by far is no joke and those that know me well know what i am talking about.GOOD LUCK and do not be scared away from these areas but from this experience you had of visiting Wagga, take the time to get to know the people in the area and i mean really get to know these people for change starts first with you.
so remember to always give back to the world for what you give out you will only receive back, i did and my dream is part started and so those that said i couldn't, good luck because i already know you can do anything you set your mind to and if you don't believe in yourself, drop me a line and i will get you up to speedoneworldMember@oneworldJoin Date: 2010Post Count: 23
Hi mentone/Jacqui & others, I have a block of flats in Kooringal, but find the expenses(maintenance, rate, land tax etc) to property value (around $175K each) is too high, not sure if you feel the same. Do you know the long term historical capital growth rate of flats/units. Not sure if I can rely on those figures in API magazine etc. What's your opinion of holding Wagga IPs for the long term ? Thinking of strata titling the flats & sell, 2minds about it as the tenants are excellent.