I was looking at buying at Goomeri area, do you think its wise I am a bit worried about been able to rent it out all the time. but i dont have alot of money to spend.
What are the vacancy rates like in the area? Can you call up some property managers and ask them about the rental demand?
If you're concerned about the property not being rented out then I'd reconsider purchasing in that area.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks its just hard because I dont have much to spend and seem to only be able to afford rural areas.
Hi Charlitayla
It doesn't matter whether you invest in urban, regional or rural areas you still need to carry out your research to determine whether it's going stack up as a good investment. The most important things to consider IMO with rural areas are vacancy rates and likelihood of capital growth. Vacancy rates should be easy enough to ascertain – future growth will require some deeper digging. Look at infastructure planning for the area, population growth/size, type of industries present, etc.
Here's a few websites that might help out with the research – http://www.passgo.com.au/property-data-websites.html
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie a big help.
charlitayla wrote:I was looking at buying at Goomeri area, do you think its wise I am a bit worried about been able to rent it out all the time. but i dont have alot of money to spend.Sometimes it's OK to wait, put your head down & tail up and improve your financial situation before investing. Not a sexy comment but it genuinely can work.
Your posts suggest you would need 'certainty' of rental income – a little bit of nervousness is normal but, if you really do need certainty of rental income then ask yourself is proeprty really what you want/need.
Along with rental vacancy rates make sure you also consider borrowing capacity in that postcode. If it is a small community banks may have lending objections to that area which, in turn can harm resale prospects.
All of my properties ( 3 house, 2 flats) are in rural/regional areas, towns with populations above 10,000 people. only one property has been vacant for an extended period of time and that was due to really poor property management. The property manager didn't even know that the tenants had moved out as well as the damage they caused.
My two first properties which I have owned for nearly three years have never been vacant. my property manager has new tenants lined up as soon as she recieves notice that the tenant is vacating.
My two flats – i have only had one vacant for two weeks in the eighteen months that i have owned them
As mentioned, make sure that you do your research. Speak with property managers rather than saes people. As he property managers are the ones who you will ahve ongoing dealings with. in my experience most of them will be completely honest regarding if the area is a 'problematic area'. the last thing they want to do is deal with angry owners on an ongoing basis.
Good luck
Sonya
Hi Sonya,
Just wondering which rural areas you invest in,
Cheers
ShivaskoThe regional cities rather than towns make more sence, I just bought two properties in Wagga and they rent at a higher rate than in the towns near by due to higher demand. Many country towns have a high number of properties on the market and this tends to push down rental returns.
Its like anything get to know your market. Wagga for example has two military bases and a university so there is high demand for smaller rental properties.
I have two houses in Gunnedah – my best properties, one house in Forbes and flats in Leeton
I like regional areas and my favourite type of property is blocks of units. We currently have some in Trevallyn, Launceston (pop 100,000) and Turners Beach, Tasmania (nestled between Devonport and Ulverstone so larger populations). Each unit is valued at $130K – $150K and rents for $175 – $210 per week.
I really like having these lower priced properties with multiple tenants…….if one moves out we don't lose our whole income stream…..enables us to renovate then relet @ higher rent. Having said that, Trevallyn has not had a vacancy for long enough to enable us to do any renos yet
. This really demonstrates that vacancies in regional properties are not an issue if you buy in areas with strong fundamentals.Another upside of this style of property is being on separate titles we are able to sell any or all of them whenever we want to, offering decent yields for the next investor
Personally, I don’t like investing in rural areas. But it may be different for you.
As they said above, check the vacancy rates first.If you can’t find a good rural property with low vacancy rates, then just keep saving for now so you can get a better property in the future
Hi Charlitayla,
Goomeri is a lovely little town (we have a farm at nearby Kilkivan).
I'm certainly not against investing in rural areas however I caution over Goomeri's size. You could be lucky enough to get a tenant who'll live there for years without a problem – we don't ever hear of much trouble from Goomeri despite it having a great pub!
Goomeri is in the Gympie regional council. Despite the fact that the vacancy rate is not extremely low in Gympie I would suggest considering Gympie over Goomeri for it's stability of multi industries, size and growth potential. There are currently some great buying opportunities for older properties around $200K and for around $250K you can get into a new property (feel welcome to PM if you'd like specific details).
The region overall at the moment has been relatively flat on the real estate scene but we hold a number of rental properties in the area and our personal outlook is positive; close to beaches, Brisbane, great weather (not far enough north to be overly humid) and also although not in the Surat Basin it's proximity is drawing some people to the area to base their families. Additionally there is exploratory work current underway for the Tiaro Coal Mine (google it) which could have a dramatic effect on the region (think triangle of Gympie to Maryborough and out to Goomeri).
All the best with your choices.
Kind regards
Meg
. This really demonstrates that vacancies in regional properties are not an issue if you buy in areas with strong fundamentals.
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