The Future of Very Small Towns

[Elliotte]

Was out for a Sunday drive and went to Werris Creek where Angelina Jolie was filming not so long along. Stunning place and well picked as a film set. Anyway the population is about 1500. Town is past its glory days by far. 40 mins to Tamworth.

There was an old guesthouse for sale that was gorgeous. 18 rooms $500K. And three shop tops as one package - so three apartments and three shops for $250K on main street. Houses for mostly under $200K including a fun project for $98K. I just had fun pretending I was going to do all these places up or buy the lot and create some touristy stuff.

I was just wondering what the future for these type of places is - you can't get mortgages in a place so small can you? So what..only people who already own there stay there, or those that had cash only can buy? Seems a shame...

 

[topcropper]

I was just wondering what the future for these type of places is - you can't get mortgages in a place so small can you? So what..only people who already own there stay there, or those that had cash only can buy? Seems a shame...

Werris Creek is basically a suburb of Tamworth. Why do you think you wouldn't get a mortgage? I'm sure most people in the town would have borrowed money to buy a house, like anywhere else? Houses are so cheap you may find that most people own their houses rather than rent?

House prices in Werris Creek would have doubled from 2003 to 2006, just like all other towns in the area. But they probably did nothing in the 10 years before, and nothing since 2006.

These little places will probably never thrive again, but they won't die either. Farming is fully mechanised now, as is the railways. No more jobs lost in either of those areas. Agriculture is sort of getting more intensive again as some big farms get broken up into hobby farms, or some chook sheds go in, or a horse breeding stud etc.

Buying in Werris Creek would have one big possible upside? The two new coal mines when or if they ever go ahead? But Tamworth would be the safer bet there. It would still be less then an hours drive from Tamworth to the mines.


See ya's.

 

[lizzie]

I know what Elliotte is trying to get at ... I too would love to buy up and take some of these small towns by the scruff of their necks and try and turn them into tourist destination.

I have seen this happen in NZ, where someone will by a string of shops and put in a coffee shop, a cheese shop and a locally made nik nak shop ... then slowly the rest of the town follows suit ... and next thing you know the town is an uber trendy destination ... but it doesn't always happen and one has to have the cashflow to hold out until the momentum occurs.

I don't think I have the balls to do it myself.

This is one such place - but it's only an hours drive from Wellington so is a "day out" or "weekend escape" destination from a major city

http://greytown.com/

It's revival came about when the historic Swan Hotel was trucked in and reconstructed on the main street ... still took around 10 years for the trend to occur

 

[Elliotte]

I thought that if a town or city is under a certain size it was difficult to get a mortgage? Don't know where I got that idea...sure I saw discussion about it on these forums somewhere.

That's EXACTLY it Lizzie. I had that kinda idea - why aren't more people doing this...I mean say for your $250K it goes badly the shops stay vacant or you suck at running them and you send up just living in one of the apartments and renting out the two others cheaply - you're still making positive cashflow and have somewhere to live. I think I'm just so falling in love with cheap country areas and after seeing friends in cities renting one bedroom places for $550 a week wondering why the exodus out of cities isn't greater lol.

I've just rented a weekender for my son and I so we can have a break from living at our guesthouse and it's four bedroom with a loft parent area, pool, cubby house, opposite the river for swimming too, yard space, decks, wood fires for $280 a week which we make by renting out the areas we used to stay in at the guesthouse so I'm just loving this whole tree change thing ha ha.

I mean even as a hobby I'd enjoy tootling about my three shops and three apartments - holding costs wouldn't kill me while I played even with limited income haha. I know opportunity cost is the big one - what else could that 30% deposit be doing etc. I'm not serious about it but just gets me thinking all of these empty areas - all of the surrounding areas to Tamworth are similar. We're a well serviced enough hub that so far I haven't missed the city - even though it does mean a three plus hour drive for a good medical specialist. Evens out with the rest of the stuff being so close - walking down the road to see the Archibald at the local gallery, walking to the cinema and the Wiggles for the kids two blocks away - we're doing a lot more cultural stuff due to it being so close and cheap and easy.

 

[Aaron Sice]

i remember checking out the Wagin Hotel when it was for sale with another forumite. Wagin is the biggest town in the SouthEast Wheatbelt region. this deal seemed pretty good on the face of it.

long drive, got there and the whole pub and hotel was for sale, including the tenancies downstairs.

of those four tenancies - one was vacant, one was a cafe not doing so well and the other two were leased back by the owners of the hotel - clearly an effort to bump up the cap rate. they were - and i kid you not - a fancy dress shop with no lease in place and an 'office' with no lease in place - worth all of the carpet on the floor.

went inside and they were plumb in the middle of a reno and had obviously bitten off more than they could chew. kitchen was a full commercial setup but was in pieces. was set up very 'boudoir' which i'm sure suited the couple who owned it down to a tee.

apparently it was 'booked solid' during Woolarama (a huge ag festival for the area opposite the hotel at the showgrounds - attracts about 25-30,000 people) but we didn't see a single tenant when we were there.

bar had lost it's liquor license.

state listed heritage building.

all for the princely sum of $550,000.

pass.

 

[topcropper]

We're a well serviced enough hub that so far I haven't missed the city - even though it does mean a three plus hour drive for a good medical specialist. Evens out with the rest of the stuff being so close - walking down the road to see the Archibald at the local gallery, walking to the cinema and the Wiggles for the kids two blocks away - we're doing a lot more cultural stuff due to it being so close and cheap and easy.

What town are you describing here while you are out of the city?

I'm surprised you like Werris Creek so much? I find it a bit ugly with all the railway tracks and sheds and old infrastructure to the west. A few towns with some natural beauty in the area would be Nundle or Murrurundi, although both smaller than Werris Creek.

Been to the railway museum in Werris Creek yet? Head out west and have a look at some of the farming land.


See ya's.

 

[The Fence]

Been to the railway museum in Werris Creek yet? Head out west and have a look at some of the farming land.

.........and soon to become mining land.

Plenty of scope for Werris creek in the future.

 

[Elliotte]

I'm in Tamworth....Werris Creek is quite ugly in areas but that adds to the "real" vibe you package ha ha. Nundle to me seems a bit too fake and got terrible service at a cafe there and not quite sure what the excitement is about it although they market well. There is a guesthouse there for sale too but dreaming at nearly $800K. Manilla is another ugly, empty kinda area I've seen. But some fun things there - hamburger from a guy who has been slicing his own potatoes for chips for 70 years or something. I'm slowly working my way round the little areas and find it all pretty amusing in general. Qurrindi was sweet.

 

[Arnoldus]

I was just wondering what the future for these type of places is - you can't get mortgages in a place so small can you? So what..only people who already own there stay there, or those that had cash only can buy? Seems a shame...

Had a friend buy a PPoR in Werris Creek last year. Bank wanted a 20% deposit, but that's not a huge amount of money when you're shopping in the 150-200k range.