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!
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
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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.
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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
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-$150pw. Its a decent sized town 45min from Dubbo and 1 hour from Orange.
I spoke to a few locals in the area and there are quite a few people moving to Wellington from Dubbo and Orange as its much cheaper and then commuting back for work.
With Dubbo and Orange already going up in value, there could be potential for Wellington to follow until then collect the good rents.
Engelo
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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..
Hey guys thanks very much for all the information…. makes decisions a lot easier
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,
StaceyI 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
Might be good to look at crime rates when you're choosing an investment area…just a thought.
Cheers,
StaceyA 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 $50,000 all day long.
Engelo
scha9799 wrote:I understand your point that Wellington is a good entry point becasuse of the price is low. but Wellington according to ABS stat is only about 4500 population.what's your property search criteria for population ? I heard some people say don't go to the population lower than 10,000.
just want to hear some experienced investor in the regional town what's they thought about low popluation and potential
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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!
Small towns increase your level of risk. Make sure you increase the amount of research done if you are looking at smaller towns.
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?
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
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 $150K loan, as this is my maximum any bank will let me touch at the moment, and then I was thinking of doing an option, and then getting a DA. Once the DA comes in going back to the back to raise more capital for the renovation costs and then selling off each unit for a profit. Has anybody done anything like this in the regional areas? Thoughts?EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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,
StaceyI 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…
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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