Hey everyone,
I was just wondering to see what everyone's opinions of the following 3 areas in terms of their economic vibrancy:
– Toowoomba
– Bathurst
– Orange
If people have invested in the area, what are the pros and cons of each area and what do you believe is the best area for future capital growth and rental yields.
If anyone could provide their advice or experiences of these 3 areas that would be much appreciated.
In addition, would these areas be deemed hotspots or warmspots?
Thanks,
Orange has been on the radar for quite some time. I haven't been keeping a close eye on it but I doubt it would still be considered a hot spot – happy to be corrected though.
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]
I also don't think that any of them would be considered as a hotspot, especially when you compare returns that you can get from mining boom hot spots.. Although, those 3 areas that you mentioned can be considered regional major hubs, which you may be able to find a number of positive cashflow properties, and cheaper properties than in metro CBD/coastal areas.
Economy in those 3 places are much better than more isolated regional towns.
What's your aim with these places?
Hi Matthew,
My goal is to build a property portfolio of 20 properties with a net worth value of $5 million in 10-12 years. As I am 21 I saw these areas as areas that I could afford, had key economic drivers. I am just not sure which of those areas would have the highest future rates of capital growth so I can build equity and purchase more property.
I am looking for a property around $250-300K that I would like to spend. Does anyone have recommendations on what I could buy which is a hotspot or warmspot if the areas I have talked about aren't and explain why those areas are hotspots or not.
Thanks,
What about bundaberg or rockhampton? Or even a cheap house in Townsville. They are all relatively cheap regional hubs effected by the mining boom but not reliant on it.
Just a few more ideas fort you.
Cheers,
Nathan
Would you classify those areas in Queensland performing better from a capital growth or rental yield perspective. than Toowoomba, Orange and Bathurst?
Hi l have bought in orange.when you go there you get the feel that it is a vibrant economy.it is easy to find a cash flow property.However at the moment the rental market is flooded.If l was you l would look at Bathurst or towoomba as both are hubs which benefit from mining but are not reliant on it .Margaret Lomas gives both a big plug
Good luck
Hi Pauline,
Does Toowoomba and Bathurst have potentially higher capital growth rates or are they seen more as better cash flow options. Because I would like to build a portfolio I am trying to see which areas will allow my property to build enough equity to purchase another property. I will probably need to build around $50-60K in equity in 3 years to buy the next property. Would Toowoomba and Bathurst allow me to do that. Would you see this with Orange too.
Thanks for your post.
Hi,
I am a mortgage broker and have had some clients invest in the Ipswich area west of Brisbane. They have seen some very poor results, one client purchased about 2 years ago for $370k and went to refinance last month and had the valuation come in at $290k. Ipswich isn't Toowoomba, however their proximity may be a caution for you?
I have one client who has purchased in Bathurst in the past three years, they bought in Kelso. Their property has stayed pretty much at a standstill for the past 3 years.
Unfortunately, i haven't done any business in Orange for well over 10 years, so I can't give any first hand experiences.
I have had some clients who have had some excellent results at Jordan Springs, near Penrith in Western Sydney. All five of them are cash-flow positive from day one. This is something I haven't seen in Sydney for a very long time. I wrote an article about it in my blog. Here's a link http://investmentproperty-howto.com.au/jordan-springs/ with some further links to some ABS research and case studies if that helps? The land prices are rising pretty quickly in Jordan Springs so I don't know how long the good news stories will last.
James
James at 370K that must have been the highest recorded sale in Ipswich for years.
I am not surprised the valuation came in short.
We do a fair volume of investor lending all over Australia and as long as you avoid the Gold Coast haven't had too many issues with down valuations.
I like both Toowoomba & Rockhampton and i am looking at a few deals myself in both areas to add to our portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
James at 370K that must have been the highest recorded sale in Ipswich for years.
I am not surprised the valuation came in short.
We do a fair volume of investor lending all over Australia and as long as you avoid the Gold Coast haven't had too many issues with down valuations.
I like both Toowoomba & Rockhampton and i am looking at a few deals myself in both areas to add to our portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Orange is a mining town (last time I checked) 2nd biggest Gold mine in Australia ( with at least a 30 year life after the current extension is completed). On top of this there is a diverse demographic and regional hub status (uni, base hospital etc).
for reference, Parkes is also a mining town … much cheaper than Orange in comparison as there is not the demand created by the regional hub element.
If l had to choose l would go for Toowoomba. Just make sure you do lots of research , because if you need to make 50-60k in equity in three years you will have to buy well. I spent 186,000 in orange on a three bedroom house in Glenroi , Orange. It rents for 280 a week. However this will never increase in value by the amount that you need. You may have to manufacture equity by doing a cosmetic reno, so maybe buy a place that is structurally sound but needs a freshen up, close to the CBD of these areas that you r interested in. It helps if you live close for this strategy to work. If you dont live close to Orange, Bathurst or toowoomba, maybe look closer to home.
Is it still good to invest in Bathurst? What's the vacancy rate? Does anyone know if buying a small place near the CBD is a good idea for uni students to lease? Will there be CG?
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