Regional Investing-New South Wales..

Apart from the dropbears- which can be extremely dangerous- there's the same things you need to be beware of for any property. What are the prospects where you are buying? Will there be demand from renters as well as buyers? This will be strongly influenced by the economy. A growing population and good economy are more likely to lead to rental demand and capital growth. However also look at supply. An area with a lot of land available may have more limited growth even in a good economy.
 
While the subject of dropbears can have quite a "bearing" on where to invest (for instance I wouldn't choose to invest in the Central Australian area where concentrations appear to be the strongest), I felt that it was an important enough consideration to start a separate thread
 
Dropbears aside - does anyone have any particular thoughts on Orange.

There appears to be a range of very cheap properties available, but have some PPOR restriction to them?
 
C Stewart said:
Dropbears aside - does anyone have any particular thoughts on Orange.

There appears to be a range of very cheap properties available, but have some PPOR restriction to them?
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Those are ex housing commission stock - they lock up the sale to local owner occupiers to try and encourage fhb and existing tenants to purchase. Sometimes it works, often not. Dubbo has a similar program.

Orange had a big run a few yrs back on the building gold mine investments. Rents and prices rose, its flatlined a bit lately. Prior to that it has a history as a diverse regional so not too bad as a whole but the town will continue to rise and fall on mining.
 

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I have 2 ex- housos in orange. Always small issues with tenants. Vacancies are a high at the moment and if our tenants leave we expect to need to reduce rents

Knight do you think mining has that much of an impact there? I thought it was just one of the many industries there?.
 
I went with Bathurst over Orange, diversed industry. Owned for just over two years havent had any issues with tenants increased the rent. By interesting to see what it would be worth, for what I've looked it looks like it's increased.
 
beachgurl said:
I have 2 ex- housos in orange. Always small issues with tenants. Vacancies are a high at the moment and if our tenants leave we expect to need to reduce rents

Knight do you think mining has that much of an impact there? I thought it was just one of the many industries there?.
Click to expand...

Well a few yrs ago it was pumping along and vacancy sat at 1%. Now its at 4.4% If this was a standard regional with no impact by mining then how would you explain that shift? Drought has an impact but not usually that dramatic.

http://sqmresearch.com.au/graph_vacancy.php?postcode=orange&t=1

IMO not the right time for Orange.
 
iprock said:
Me toooo mate.
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Its ok to be new ;) you are in the right place to learn.

I have spent a bit of time digging around for regional stuff. Main thing in my mind is to understand the local economy, whether population is growing (or falling and it can do either) and what the drivers are. Extended vacancies and/or falling rents are possible if you get caught in the wrong place at the wrong time. This is especially true of smaller mining locations. Larger diverse regionals are much safer.
 
Whaaaaat??

Hi Brady, I'm considering Bathurst and just checked vacancy rates online where it said its over 6 percent. Does this sound right to those in the know? I'm currently o/s and don't have any magazines to cross reference. If someone could check e back of an API or YIP it would be treaty appreciated.
 
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