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
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.
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..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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
I agree with the everyone else above – I really think the days of Broken Hill are numbered.
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
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 MeResidential and Commercial Brokerage
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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
