Housing in Rural Areas and Factors to Consider
We have had a lot of need for housing in those growth areas. We have had a big push into those areas where the big money is being paid; where people are moving in. They want properties to rent. They want properties where they can live in these remote areas. That has forced the price of properties in those areas up. It has forced the yields up. For example, a little three-bedroom house might bring you in $700 or $800 a week in some areas. Is that sustainable though? What do you think is going to happen to the oil prices? What do you think as an economy, is going to happen?
These are the things that you need to think about when you are doing your due diligence on a particular piece of property. Even if you have got some of those properties in your portfolios, should you be holding them or should you be selling them? What’s going to happen if the oil price that that particular property is reliant on, drops? How sustainable is your property? It might be fine, others may not. It depends on the quality of your property.
We always recommend that you seek professional advice as this blog is for general information only