Regional Centres

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Fegger
Participant
@fegger
Join Date: 2015
Post Count: 3
March 20, 2015 - 9:35 am
Hi everyone
I’m quite new to this and still getting my head around it all.
I just wanted to get peoples views on purchasing IP’s in regional areas, central west for instance. I have read different theories and reasons why they don’t make good investments but I personally know people who have done quite well. Any comments / guidance would be greatly appreciated.
Cheers…
- This topic was modified 9 years, 1 month ago by Fegger.
Kinnon Bell
Participant
@kinnon
Join Date: 2014
Post Count: 151
March 20, 2015 - 3:36 pm
Central west of where?
Regionals are usually good for cash flow and capital growth is usually the sacrifice. There are some exceptions to that rule but not many.
I started out my IP journey with 2 regional cheapies that served me well as a stepping stone. Purchased, did a basic cosmetic reno on both and rented out both for 8% and 10.5% return straight off the bat. Was also able to draw on manufactured equity to leverage next purchases.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
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Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Fegger
Participant
@fegger
Join Date: 2015
Post Count: 3
March 20, 2015 - 3:57 pm
Thanks for that. NSW I was thinking!
steve572
Participant
@steve572
Join Date: 2005
Post Count: 7
March 20, 2015 - 4:51 pm
At this stage of the cycle i would certainly look at regional centres in NSW. things are beginning to move again after many years in regional NSW. Anywhere that has good infrastructure and planned infrastructure is good. There are good returns to be had in places like Inverell, Grafton etc. As stated previously you trade some capital growth for return however if you buy now, i believe that these centres will experience some growth in the next twelve months as a flow on from Sydney, Central coast, Newcastle etc.