\nOn today’s show,\u00a0I talk to Glenn Ryan, a 41-year-old investor who is bucking the trend and finding investment in property in regional areas is anything but a disaster.
\n <\/p>\n
Kevin<\/b>:\u00a0 Property commentators have been loudly criticizing investment in property in regional areas due to some horror stories that have come out in surrounding mining towns. Does this necessarily mean that all regional areas should be no-go zones? It\u2019s certainly safer to invest in property in capital city areas where the economy is much more diverse and therefore property investment could be seen as being more stable.
\nIn the April edition of\u00a0Australian Property Investor\u00a0<\/i>magazine, you might be interested to read an article that was written about a 41-year-old investor by the name of Glenn Ryan, who is bucking the trend and finding investment property in regional areas is anything but a disaster. He joins me.
\nGood day, Glenn. Thank you for your time.
\nGlenn<\/b>:\u00a0 Good morning, Kevin.
\nKevin<\/b>:\u00a0 Glenn, tell me, how do you safeguard against investing in an area that\u2019s potentially so volatile?
\nGlenn<\/b>:\u00a0 Basically I\u2019ve been investing for the last 10 years. I have 14 properties, the majority in regional New South Wales and one in Tasmania. My investing has really intensified post-GFC, when investing in regional New South Wales in particular has just been so affordable. In a way, I\u2019m a little bit of an oddity or a curiosity, which is understandable.
\nWhat I\u2019ve found in these towns that I\u2019ve invested in is if you purchase entry-level or bread-and-butter properties, there seems to be a general pool of tenants who look for those properties, which reduces your volatility. You have a greater pool of tenants applying to these properties, but they\u2019re not flash. It\u2019s certainly not hard to rent them out. These towns typically have negligible vacancy rates, certainly less than 2% vacancy rates, so sort of safeguards my cash flow and investment.
\nKevin<\/b>:\u00a0 When you\u2019re looking at these regional towns, do you look for those that have a fairly diverse economy \u2013 in other words, not based just on one industry like mining?
\nGlenn<\/b>:\u00a0 I\u2019ve found that with the properties that I purchase, typically Centrelink comes into play. I\u2019ve found that probably three quarters of my tenants are relying on Centrelink. In a way that\u2019s not reliant on volatility or industries, and in another way it\u2019s a recession-proof business model. Of course, the capital growth kick will be with any industries near these towns do take off, and that\u2019s what I hope for and that\u2019s what I\u2019ve researched.
\nKevin<\/b>:\u00a0 Is it coupled up with affordability?
\nGlenn<\/b>:\u00a0 Yes, definitely. That\u2019s why I\u2019ve been able to afford with these properties. If you want to take out a 30-year loan, borrow out 110%, it\u2019s very easy to get cross-mutual properties in regional New South Wales or Tasmania, where I have another one. Critics of that would say it\u2019s going to take forever and a day to sell all these properties if you wanted to sell them.
\nKevin<\/b>:\u00a0 In the article in\u00a0Australian Property Investor\u00a0<\/i>magazine, you hinted the fact that there have been a few trials and tribulations. I think your words were something like, \u201cA bit of a rough road.\u201d What have you learned from those experiences?
\nGlenn<\/b>:\u00a0 What I\u2019ve learned is because my strategy has been to purchase entry-level or bread-and-butter properties, what tends to be the issue is that they are basic houses. The challenge has been unexpected repairs on a lot properties. You just have to have that amount of cash and be ready for the next problem that will present with an older house.
\nKevin<\/b>:\u00a0 What\u2019s next for you, Glenn? What are you considering investing next, and why?
\nGlenn<\/b>:\u00a0 I\u2019m certainly casting my eye over any town in the Gunnedah basin. About one week ago, there was a major announcement that Shenhua Watermark had just been given the green light from the New South Wales government to start a coal mine south of Gunnedah. Certainly anything in the Gunnedah coal basin \u2013 Gunnedah, Boggabri, Curlewis. I\u2019m pretty well excited about anything around Gunnedah. It would have to be entry-level. I wouldn\u2019t be going investing in a very expensive modern house with a pool or anything like that.
\nKevin<\/b>:\u00a0 What is entry-level, Glenn?
\nGlenn<\/b>:\u00a0 Basically, three-bedroom. It would have to have air conditioning. Typically, it would have old carpets in it. It would have an old kitchen. The place would allow me to just do the basic renovations if I wanted to.
\nKevin<\/b>:\u00a0 What price range, Glenn?
\nGlenn<\/b>:\u00a0 From the $60,000 to the $100,000 price range.
\nKevin<\/b>:\u00a0 What sort of return would you expect to get from that?
\nGlenn<\/b>:\u00a0 For example, Moree. A lot of people are aware of Moree.\u00a0<\/b>It\u2019s quite a cash cow, but it\u2019s not hard to buy a house in Moree\u00a0<\/b>for, say, $100,000, and rent it out for $200 a week.
\nKevin<\/b>:\u00a0 Glenn, all the best with your investing. You make a lot of sense, and I appreciate you giving us your time. Thank you.
\nGlenn<\/b>:\u00a0 Thanks for your time, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"
On today’s show,\u00a0I talk to Glenn Ryan, a 41-year-old investor who is bucking the trend and finding investment in property in regional areas is anything but a disaster. Read the transcript here: Kevin:\u00a0 Property commentators have been loudly criticizing investment in property in…<\/p>\n","protected":false},"author":176692471,"featured_media":2437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-3767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\n