How to find positive cash flow properties in farming towns with over 20,000 people.
Firstly, congratulations on being specific. A lot of times people don’t get specific enough and they say my biggest problem is I can’t find positive cash flow property. Okay, I can show you a bunch of mining towns around Australia. Probably 10-20 mining towns all around Australia where there are positive cash flow properties are a dime a dozen.But, maybe that’s not exactly what you want because that’s too high risk profile for you. So getting more specific and saying look I want to invest in farming towns which aren’t heavily dependent on mining and that have over 20,000 people in them.
Okay, so how do we start to go about doing that?
Take A Bird’s Eye View Of Your State
The first step is to take a bird’s eye view of the state that you want to invest in. Let’s say it is Victoria, because I know the person who wrote this is actually starting to look in Victoria.
What we want to do … What I suggest is you go to whereis.com.au and use that map. You can also use Google maps, but what I found is that Whereis will show you towns a lot better than what Google maps will show you.
Look For Junctions In The Roads To Find Towns
What you can do is go and zoom out so you’re just looking at the state of Victoria. What you want to look for is the junctions in the roads. That’s what I found … That’s where you’ll find the majority of your big towns is when you’ve got the freeway goes here which then sends out to three more towns, you know where the road meets the road.
Those transport routes you’ll find have the highest population of towns in the area. So going out of Melbourne you’ve got Ballarat and you’ve got a whole bunch of towns out there. The first step is to do that bird’s eye view and to start to pick out towns, to highlight the towns and where they are.
Find The Populations Of The Towns
The next thing you want to do is find the population of the towns. There are two ways we can do that.
1. You can go to Wikipedia and type in that town. If you go to Wikipedia.com and you type in let’s say Ballarat, VIC for Victoria it’ll bring up Ballarat and on the right-hand side of the screen it’ll show you the population of that town. You can find out the population of towns through Wikipedia.
2. You can also find it out through the census. If you go to Google and just Google census quick stats 2011, because that’s when the last census was, then there’s a census page that will come up that will allow you to search by postcode. If you find the postcode of the town you can put that in and it will show you the population of the town there.
That’s your criteria. First you found the town. Second you’ve looked at population and you want to be canceling out all the towns that are under 20,000 people. This is laborious work. It’s going to take you time. It’s not going to happen overnight. There’s no click your fingers and you just got a list of all those towns….or is there?
I know that in my membership site, which you can find at cashflowcore.com.au, I’ve got a list of all of the towns in Australia. Back a couple of years ago I did analysis from the 2007 Census and I sorted those towns all by their population so that’s available to members only.
You can actually then go okay, I want to invest in a town in Victoria, what are the towns and what are their population, and you can just look at everything over 20,000 people. That is available, but it is a paid membership site.
You can still use this method, but it’s just going to take you more time. So, whereis.com and then we’re checking the population using Wikipedia or using census data and we’re finding out those populations.
Find The Rental Yields Of Your Chosen Towns
The next thing you want to do. There’s a couple of things you can do. You can buy a real estate investing magazine, look in the back and go to that town and look at the town and look at what’s the rental yield of that area, what’s the median house price, what’s the growth rate over the last two years and see if it’s something you want to pursue more. Or you can go to something like realestate.com.au and start looking for properties in the area. Get on the phone, call the real estate agent and say look there’s this property here I can see you’re selling it for $300,000. How much would that property rent for? I’m an investor I just want to know. They’ll tell you straight off the bat. They’ll say oh we reckon this property will rent for $450 a week, or whatever. So if you go through … You’re going to have to …
Even in certain towns you might find that one property has a rental yield of 4%, but there’s a different property in that same town that has a rental yield of 8.5%. There’s this huge polarization in different towns so you’re going to need to do some digging and find out okay maybe the whole town’s not going to be a positive cash flow, but maybe there’s a couple of properties in here that are going to deliver the return that I want. Or maybe the town doesn’t quite deliver the rental return that you want, but if you could do a little bit of a renovation or turn something into a dual occupancy then you could boost the rental yield of that property and make it positively cash flowed.
I hope that helps answer your question as to how do you find positive cash flow farming towns with over 20,000 people in Australia. A few steps there that should really help you. If you guys want more tips on how to find and invest in positive cash flow property then it’s easy. You just join our email list. I send out daily emails to help you guys. Just go to cashflowinvester.com.au. Easy, that’s the homepage. Just enter your name and email address there.