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Stefan Angelini is Joined by Cate Bakos to discuss investing into Regional Investment Properties. If you're looking for a cash flow property or investment property and have limited deposit funds or a limited amount of borrowing available to you, then this will probably be a strategy you'll be looking at.
Stefan Angelini
Good day everyone thanks for joining us for another episode of Investor Types luckily enough today we're talking about investing into regional properties and we're talking with Cate Bakos Cate how you going thanks for coming on board
Cate Bakos
I'm good living the dream working from home having a great time
Stefan Angelini
It's a crazy time it's a crazy time u chatting chatting to Cate we both grew up I grew up in the Western suburbs in Melbourne got out of there Cate lives in Yarraville one of the trendiest spots in the Western suburbs in Melbourne the up-and-coming area of the last few years and what I like to say is Cate we call Cate the Queen of Property here in Melbourne and I think probably the most articulate person in the Western suburbs I'm gonna say
Cate Bakos
Oh that's not fair you asked if you asked if you could hang something on me that's so mean you'll be back like a boomerang I'm putting money on it
Stefan Angelini
Oh I've been talking to how many people about you know where do you want to live Yarraville, Seddon and Footscray all these places that have just changed so much over the last 10 years West is the place to be
Cate Bakos
Yeah
Stefan Angelini
It is
Cate Bakos
I'm looking at over here it's great
Stefan Angelini
And look people still see West going over the West Gate Bridge I've got some friends that have never been over the West Gate Bridge in their life
Cate Bakos
Stop it
Stefan Angelini
And here we are we're gonna talk about investing into regional properties they're going further than the West Gate Bridge for an investment property so Cate when we talk about investing into regional property it's gonna be really interesting just to talk about your past probably specifically over the last 10 years so tell us a bit about your experience in buying property in the last 10 years
Cate Bakos
Yeah for the last 10 years that is what I've been doing I've been a buyer's agent for for just
over 10 years and it's it's a perfect role for me I would looking for a long time for you know a blend of things that would be perfect for you know what I think I bring to the table and I've invested myself many years ago I started and I've worked as a mortgage broker I've worked in the industry in the sales office and and having my own investments I thought was a really good combination so I I started my career yep just over 10 years ago and I've gone out on my own since 2014 and my activity is my main focus is investment and I love the theory the strategy that talking people through you know where they should start and what sort of strategy is right for them but I also obviously help a lot of home finders too and that takes a different skill set and a different focus because it's an emotional process and you're there sometimes to cancel them sometimes to tell them no we're not doing this this is not in the plan and yeah I've got good at telling people what they don't wanna hear but that that role is a very protective role where you do have to be completely honest with people
Stefan Angelini
Yeah 100% and so when we talk about experiencing buying property what areas have you been sort of looking into and dive deep into over the last 10 years
Cate Bakos
Great question so I came over to the West eight years ago now and it was because I had really fallen in love with what it had to offer and I was feeling pangs of jealousy when I was buying property over here for clients I actually came from the Southeast so I'd always lived around Mentone Mordialloc
Stefan Angelini
Yeah
Cate Bakos
And I worked in a real estate office in Sandringham so my familiarity was with you know the other side of the bridge so when I started I was doing a lot of work in in Bayside in Kingston, Glen Eira, Buroondara, Stonnington and you know that was great but I had to get to know
all of the city because we are market generalists we have to be familiar with everywhere
and I was working for a firm in North Melbourne so of course I was exposed to the North as well and a lot of guys in the office lived in the North so I got my familiarity up and then spread it West so now it's fair to say that probably 75% of my work is in the North in the West and the regions and then the other 25% is where I originally started and came from
Stefan Angelini
Okay so when we look at the regions so areas like Geelong Ballarat these places have been skyrocketing over the last few years and been drawing a lot of investors in and when people
think of regional areas I think of well there's more land space there's cheaper properties probably more restricted capital growth tell me a bit about your experience when searching for investment properties for people out in the regions
Cate Bakos
Yeah when I first decided that I needed to have an offering that delivered a stronger rental return that was my motivation for going into the regions not just to have a lower price point but but to be able to say to someone yes we'll get five percent gross rental return because that's not something that you'll commonly find in a good part of a Metro City or particularly in our City here in Melbourne so I was able to get up to six and a half percent gross rental yield in Ballarat 10 years ago and that was you know a factor of lower price points than what you're seeing nowand a tighter vacancy rate and you know less housing since then Ballarat's had an explosion of housing subdivision particularly towards the Western side of town and we've seen plenty of investors jump onto Ballarat and I'd say the last five years has seen the strongest influx because we had as you well know limitations to credit availability for for investors particularly from about 2016 APRA made it really hard for the banks and the banks made it really hard for borrowers so we saw a clampdown on investment lending servicing was tighter interest rates were different PNI was the the common offering as opposed to interest only so investors just said it's all too hard to get our hands on decent sums of cash let's go for a more demure budget and I had a lot of people asking me then about the regions because if someone has it in their mind that they want a house on a full block of land and a lot of people have that you know that assumption that that's the way to go I can blast that myth another day but if that's what they want and they've got three hundred thousand dollars well Ballarat certainly five years ago was a city that could offer that so the the regions have had some really amazing growth of light for a combination of reasons but that was one driver to places like Ballarat, Bendigo, Geelong, Castlemaine really finding themselves on the map
Stefan Angelini
Talking about buying properties out there now you've bought over 200 in both Ballarat over 200 in Geelong so you've got a lot of experience out there do you see there's much difference in the sales and even auction process between either buying a prop a place in Melbourne Metro as a buying place to the regional towns
Cate Bakos
Yeah there is it's huge when I first went to Ballarat I got to know the area initially so weekends up there interviewing targeted people I wanted to feel like a you know a bit of a local area expert before I started placing clients there so I got to know a lot of people what I'm what I really underestimated was just how gentle real estate transactions are there and the amount of trust in that you know country style way of doing business is really beautiful and it's still alive and well despite the fact that they're dealing with Melburnians every weekend I find now if I'm negotiating on a property in Ballarat they chances are there's not a contract available yet so it's really just an academic conversation about agreeing on a price subject to you know a contract coming through that has no nasty surprises and the agents will shake your hand or ring you up and say congratulations and literally tell people the property sold and put a sold stick on the board without a contract being executed and you know it really is a town where I say the handshake is fema
Stefan Angelini
Yeah
Cate Bakos
We've we've got some awesome agents here in in the city in Melbourne but in in the country that handshake is their promise and it's you know I used to really bust their chops asking them well how will you deal with other buyers and what will you tell them and what about if someone offers more and they'd say Cate the property's sold to you it's all good it's your client we've done the deal and then what if what if the vendor gets a better off no the vendor he's a man of his word the deal is done so it's very very rare well I've certainly from my experience has found it very rare that I'll get any nasty surprises out of a negotiation in Ballarat they they really do still have that lovely friendly country element and Geelong is bit different
Stefan Angelini
If you treat them with respect you'll get respect back
Cate Bakos
Oh always just beautiful people you know I can go up to Ballarat to see some properties and they'll have my favorite coffee waiting for me I've known these people for a long time
and you know they there's a lot of agents in Ballarat so competition between them is pretty tough and you've got to you know understand your own niche as an agent and and they're very hard working you know they'll be working around the clock like a lot of agents do but it's it's a very very different market because their their auctions are less prevalent in Ballarat you might have an auction campaign for a higher priced property but your your lower priced and medium priced properties you tend not to find auction campaigns of the norm they'll have a private sale and again when you look at the quite range chances are if you make an offer within it it's enough to buy it there's you know that undercoating regime is not the same in Ballarat and as a result if if they do have an auction there you'll find that locals aren't quite as comfortable with it either I remember going to one auction in Soldiers Hill which is like the Fitzroy of of Ballarat and I had tried to buy this property prior and the agent wouldn't sell it to me because he wanted to have his auction and that was cool but I I thought fine whatever I've got to go so on this miserable wet rainy Saturday I drove up to the auction and did my normal thing you know you get your gladiator pose and your dark glasses even though there's clouds in the sky and just right the first bid and walk up to bidders and you know all your intimidation tactics and everyone just froze and like the agents calling for a bid and anyway passed into me and he said what
are you doing I was just you know bidding
Stefan Angelini
That's what I do
Cate Bakos
No additional tricks or anything it's just that's that's not what it's like in the country so yeah I used a sledgehammer to crack a walnut realized after that it's yeah well next time I say I want to buy it prior they might think about that auction yeah
Stefan Angelini
So tell me about how Geelong is different
Cate Bakos
Geelong is a lot more Melbourne-centric yeah so Geelong has had phenomenal growth it's median house prices higher it's closer to Melbourne geographically and a lot of the agents the dominant agents and the you know managers and principals of agencies have worked in Melbourne some of them have done their the majority of their real estate you know training and kicked off their career in Melbourne so there's definitely that Melbourne training regime under their belt and you know Geelong is is a our second city and it's a very industrial city but the demand has been so high and the price points in the the inner suburbs within Geelong have property price tags a million dollars is not an unusual thing for one of the inner suburbs so of course yeah the new town West South Geelong East Geelong I love Drumcondra and Rippleside on the record saying and Belmont by the river you know there's some really beautiful parts of of Geelong that are very aspirational for a lot of Melburnians and you get that there's a higher proportion of of owner occupiers to investors as opposed to Ballarat you'll get a lot more investors in Ballarat as a percentage so you know these agents know that they're working on emotion they're dealing with a lot of tree changes and sea changes who moving their lives to Geelong getting their kids into the private schools and facing the commute or setting up a home office or business from Geelong so they've got the opportunity to get a great price and to have a fantastic show when they have an auction so you you do tend to find that you don't get that that same opportunity to just make an offer and buy something sometimes you do have to sit out the
four-week campaign and just rock up at auction with everyone else
Stefan Angelini
Yeah so look look at Ballarat and Geelong I'm gonna call them regional properties even though they're now big cities there's such big cities and so many people live there
Cate Bakos
Yeah they are
Stefan Angelini
Let's look at the cases compared to buying a regional property whether it be Ballarat, Geelong or even somewhere further out say a Stawelll or anywhere regional versus buying a property in a metro area you know within a 25,35,40 kilometer radius of the CBD what's the differences between the regional and the metro
Cate Bakos
That's an awesome question now a lot of people look at the regional performance that we've all been enjoying of late and they think that they can bank that it's a bonus I've always been on the record as saying the regions have their own special offering and there are a lot of reasons why an investor could go into a region but for outperformance capital growth that shouldn't be their reason there's no earthly way of saying that a regional area will deliver a stronger capital growth rate than a Metro in fact I mean there are there are certainly casing points and I've seen some amazing work by a colleague of mine who who has explained the virtues of the regions beautifully but if I'm looking at Geelong and Ballarat compared to Melbourne or even some of our smaller regions that as you mentioned Stawell or if you're looking you know Warrnambool or there are a lot of them the the reality is long-term capital growth for a house on its own full block you'll get better performance in in in Melbourne
Stefan Angelini
So why what the regional properties what's been happening over the last few years why have they just gone skyrocketed in price
Cate Bakos
Yeah they're very a little bit more resilient to our downturns and because of their lower
price points they're seen as a lesser risk so during the the post opera intervention when investment lending ground for whole people could still get their money on a little
their hands on a little bit of money so they were prepared to go into the regions we've also seen some really strong incentives for owner occupiers and we've seen a bit of an adoption of trade change with various things like government incentives we had good move in Victoria if anyone remembers those ads there are still incentives for buying new and and building in the in the country and also we've got employers offering incentives so we've got a lot of decentralized services such as Consumer Affairs Victoria they've got an office setting up in Ballarat and they've assisted people who are willing to live in Ballarat they've assisted them financially to do the move and we saw the likes of TAC doing that in Geelong so plenty of employers have also made it with their employees while to consider life in the regions and so combine that with you know improved rail amenity and then improved tech and accessibility to being able to you know talk to your colleagues at work and run meetings but from home
Stefan Angelini
Yeah
Cate Bakos
And now obviously coronavirus has has really intensified that we've proven to ourselves that we can work from home and a lot of people are saying well my kids could have a bigger backyard we could have you know more space we could be in a community with a sense of belonging let's let's consider it so aside from just investors with smaller budgets who have continued to stay active and work on their portfolio we've seen an adoption of moving away from the city and the numbers are showing that
Stefan Angelini
The rail part of it it's it's amazing how quickly you can get from places like Ballarat and Geelong to the CBD now in fact if you're coming from the Eastern suburbs and you're coming from 10 15 kilometers away it's gonna take you longer to get from there into the city than it'll take you to get from Geelong or Ballarat into the CBD it's crazy
Cate Bakos
It's a really good point I can be in Geelong on the train and work sitting in a comfy vainline chair working away writing a blog or something and I used to live in Mount Eliza so I remember the Frankston to Parliament station ride stopping all stations no way Geelong's way quicker in fact the Frankston ride compares with Ballarat and I'm not joking
Stefan Angelini
Yeah and you're right with the capital growth side of things look people are saying look I can live in regional and you know I'm happy to live in region with my family but then you've got I guess people like myself who want to live close to the CBD who own a business near the CBD and you know love that inner the inner ring side of things and that's where you know we eventually want to end up and I think that's still a lot of people who do want to venture in closer so
Cate Bakos
I totally agree with you as much as I love the regions and I go to Ballarat and get really excited still even after all these years I'll still go there for the weekend when I'm allowed I I think that this you know the change they change adoption there are some people whose lives will be beautifully enhanced forever because of the ability to do that but there are plenty of people who it sounds good right now because we're locked in little apartments and we're bumping into each other while we're trying to do work and so it feels like a good idea but once corona is behind us you know for some this will have been a fade the fantasy of moving away from the city because our city is still an amazing place and you know there's a lot of employers and employment opportunities in the City but there's also a lot of ability to you know to be with the people that you love and to from a public transport point of view we've got a pretty accessible city and we've got a lot of money going into public transport infrastructure we all know that that middle ring rail link has dredged up our city and made parking and commuting a nightmare for now but when the Metrolink is done it will be awesome so there is a lot to to remember before we cast aside
the city and run away to the country
Stefan Angelini
Yeah you're right even I've got family all over the place so trying to be central to all of that so that you know my child can go and see everyone is what's paramount to me but let's get
back on the on the investor side of things and you really hopped on you know the the rental if you're going to invest in regional and you know inner city suburbs you're looking anywhere between two and three percent as a rental yield suburb regional you're looking at four to six depending on where you
Cate Bakos
It's dropped a little bit now yeah we've gone to the days of getting six percent in Ballarat unless you're going into a really awful socio-economic area that will give you a lot of tenant headaches
Stefan Angelini
Yeap
Cate Bakos
You can still get six percent in a couple of places but I I say this on the record there are property managers that won't look after that suburb so investors need to think twice before they think that rental yield is the bail and end or because high rental yield can go hand in hand with headache factor
Stefan Angelini
100% cash flow side of things is if you're going to buy a property that sounds too good to be true too much money coming in it
Cate Bakos
Probably is
Stefan Angelini
There's going to be headaches but how important is cash flow so if there's an investor out there that that wants to put money into an investment property but can't afford to lose money on the property I guess that's the cash flow factor that's the look at the rental yield but still you've got to make sure
Cate Bakos
Yeah cashflow
Stefan Angelini
That you've good property
Cate Bakos
Cash flow exactly so cash flow is important I think it's the most important factor but anyone who's searching for capital growth won't care about cash flow until they don't have it
Stefan Angelini
Yeah
Cate Bakos
Having cash flow and buffer and a little bit of breathing space can make the difference between a fire sale and riding out the storm and holding properties and intend and with capital growth properties you can really buffer your your cash flows as an investor and you're dealing with a different segment of the market different tenant experience and often your capital growth cycles aren't necessarily in sync so buffering is a really good concept but for anyone who is looking at investing and cash flow is paramount for them it might be that they've got a loan that requires them to to receive a certain amount of income and the bank wants to see that appraisal letter well if if the appraisal letter is calling for four percent they know that they're either going for a souped-up little apartment with lots of bells and whistles that probably won't deliver great capital growth anyway
Stefan Angelini
Yeah
Cate Bakos
Or they're going into a region and getting a house that is rent-ready and in a nice location that will definitely deliver four percent and I could easily spend four hundred thousand and get four four percent plus sum in in Ballarat and then in parts of Geelong as well so if the cash is a rental income is critical to getting the loan or if that investor has modeled out how much income they need to sustain their portfolio and to continue purchasing as well then they will need to prepare their portfolio with some some better yielding properties and I always say to people if your end goal is a certain amount of rental income into retirement and you've modelled out that you might need let's say five six seven properties well every time you consider an acquisition you need to ask yourself can you demonstrate to the bank that you can afford the subsequent one so you don't just look at your borrowing capacity for property 2020 you're also looking at what happens when you buy 2020 how much capacity have you got for 2021 and that is how I continue to springboard as an investor into more property because if I maxed out my borrowing capacity on my 2020 purchase I can't do anything in 2021 and it's all well and good to to say well at least I've got a capital growth asset but if you've stopped at just one or just two when you could have expanded your portfolio with a better blend of yielding and capital growth properties well then the person that thought it through and had the blend is likely to get to their end goal when the person that just maxed their capacity is sitting on on one property that they've popped you know all of the eggs into that one basket
Stefan Angelini
Yeah you're preaching you're preaching I love it I love it it's it comes down to individual circumstances have your goals and your plan and understand where you want to get to and
don't just invest into a property because you want to you think it's the right one make sure it's part of your structured plan you understand where you're going I recently chatted to a 63 year old who's got a few cash sold properties and wanted to sell one to go into a capital growth property and I go but you're going to retire soon and it's not going to assist you in earning that income you need for your retirement so you've got to reaching the portfolio now okay
Cate Bakos
Stefan that's a really good point you you've mentioned cash flow sometimes the regime the
reason for a region isn't just cash flow there's two reasons typically the other one is time or lack of so as you've just said you dealt with someone in their 60s if I've got someone who has limited numbers of years left in their career I don't want to be the advocate that buys them something that keeps them on that treadmill for tens years longer than they want to be
Stefan Angelini
Yes
Cate Bakos
So if you're looking at your property and it's buy and hold strategy and you want to think that by the time you retire you might not have got rid of all of the debt but your property has ticked over the cash flow positive so it's no longer requiring you to stay on that treadmill that's that's a well thought out plan and often I'll have someone who might be earning a really good income but if they're only earning it for another couple of years and they want to stop I want to be the person that supports their retirement plan not that tips it on its head
Stefan Angelini
Yeah that's right keep working until you're 80 let's not have that but let's look at the people that are looking to purchase an investment property specifically in the regions what tips would you if you could just give out three to five tips what would be the main tips you would say to someone if you want to buy a property in the regions this is the top things you should look at
Cate Bakos
Yeah first thing is understand your own cash flow and how much you can spend because if you can go bigger and bolder have a second think about the region you might be more suited to metro so the first thing is to get good financial advice the second thing is to not rely on your own emotion so if you've got an affinity with something because you love horses or whatever it has to have genuine and proven growth drivers and typically it needs to have a little bit of a stronger population exhibiting a little bit of population growth too you don't want a town that's shrinking but when I say population ideally you want to have a hospital a university if it's a if it's a robust town like that you can be assured of a lot of initiatives and incentives and and just money being spent to continue attracting people and creating jobs when you haven't got job creation you haven't got a robust set of growth drivers because if the town has limited jobs then there's no incentive for people to want to come to the town and therefore you'll get limited capital growth the next one is understand your pockets within the region don't assume that Ballarat is all the same it's so not there's over 26 suburbs there were 26 last time there's little new ones being created every time they do a subdivision and every single suburb every little pocket of streets they all have their own flavour they have their own crime rates they have their own sets of growth drivers and the best way that you can glean a bit of information about the town is spend some time there stay up there do a week away do a weekend away chat to property managers I reckon they are the most underrated amazing source of information about an area when you're commencing your reconnaissance because if you say to a property manager I will be your client when I buy what would you love me to buy that makes your job better and makes my result
happier they will tell you exactly what to avoid and I'll tell you what the locals like and I'll tell you what the locals will pay extra rental money for and believe me it will be a surprise because I used to think walkability and access to the train and all of that stuff was what people wanted because that's what we want in in Melbourne we want to be near the cafes we want short walk schools in Ballarat they want to be really warm and they want their yards to be fenced and gated and secure they love having pets and they love powered sheds now that's a generalization but if I didn't learn that I wouldn't have been able to pick out properties that keep local tenants you know 10 years along they keep them in place for a long time and they keep them happily paying the rent it's just a set of questions that you've got to ask and the property manager is a good great start
Stefan Angelini
So how important is land size then especially when you're looking out in the regions everyone wants land
Cate Bakos
Land value and the rate of value growth is the right question to ask
Stefan Angelini
Okay
Cate Bakos
You can go and buy 2,000 square meters of land but if it's growing at a lesser rate than the 500 square meter block closer into town and you're getting the same rent well what are you doing if your motivation is to subdivide different story but then that's a different set of questions all together and I often say to people why why are you looking at subdividing you know if you're bored and it's to be busy or to have a good story to barbecue just find a hobby that you like
Stefan Angelini
Yeah
Cate Bakos
Because there's a lot of risk in in subdivision when you don't know what you're doing and there's a lot more risk when you're very very busy and your asset is two hours drive away and you haven't got those tentacles into the local market to know who to ask to you know help you with your project so when when it comes to land size I say go for land value and its rate of increase
Stefan Angelini
On on the developing front of things I do hear a lot of people come to me and say look I want to get into the development game I'm gonna buy a property out in suburbs I'm gonna subdivide it I'm going to put a house on the side and I go oh wow have you done your numbers because a lot of times you see construction costs and the amount of time it's going to take to do this outweigh the benefits in the short term however in the long term you could be some you could see some benefits
Cate Bakos
Yes and that opens the conversation to the concept of what we call land banking where you can sit on something that's some dividable but you're not necessarily trying to you know initiate any kind of gain or start the project at the onset and clever builders and developers do this in fact they get into a cycle where they buy a property they'll call it a site but it will have a house on it that's reasonable enough to track it and to attract a tenant that will pay the rent and not whinge about too many things and give them their opportunity if it's a privately held acquisition and they can claim some you know negative gearing benefits on it as well so if your long-term goal is to pick a good area that will grow in value and by the time you get your hands on it carve it up put your townhouses there you can create a nice product product and you can sell with a better profit margin that's the aim of the game if you're buying something and you're working on slim margins and you're popping something really cheap and cheerful there and cutting the guts out of you know the the type of style internally and some of the appliances and finishes you're appealing to a market that's not looking at it with an aspirational filter they're looking at it with an affordable filter so your profits are less and then your risk of losing money in already a skinny profit is high because it's the first time you're doing this you can have project overruns tradies that delay things bad weather you can have mishaps at council there could be issues with all connections the list goes on so for anyone that's looking at getting you know dunking a ton of water and getting into development with the idea of doing it long term the regions can be a good place to start because you're working with smaller numbers and you've got you know less risk
but if you're looking at making money and targeting the regions I'd say think very carefully
and really good understanding of the end value of what you're trying to create and who it will appeal to who's your target market because if you're looking at first home buyer market and you're working on slim margins I'd say it could be a massive waste of time and a big headache
Stefan Angelini
So clever I love what you said there you've really don't need deep dive but you obviously had this conversation a lot of times so why do your numbers know you know
Cate Bakos
This now so watch this video
Stefan Angelini
100% look Cate look you've already you've obviously told us what kind of investor
typically goes into into regional areas but let's just give me a summary if the if you've got a client come to you and
Cate Bakos
Yeah
Stefan Angelini
You see that certain what does their situation look like they're aware that they would go into a regional investment property
Cate Bakos
Chances are if they're an investor they've got tight cash flows or they've got a tighter budget and they're really deliberately wanting to go for a house on a full block of land
Stefan Angelini
Yeap
Cate Bakos
And if if that's their motivation and and it means a lot to them I I have a saying you know I want I don't expect my investors to love what they buy but I want them to be proud of it
Stefan Angelini
Yeap
Cate Bakos
So if for them pride comes from a house on a full block of land then so be it that's when we'll go into the regions typically though it's for cash flow it's because I've sat down with them and said okay we know you're borrowing capacity we know how much you're happy to spend how much you're happy for this to cost you per month what's your upper limit and if someone says to me less than 500 dollars per month is what I'm willing to put in as short for I'm probably taking them to the regions
Stefan Angelini
Yeah
Cate Bakos
So that's usually what precipitates that decision to goto the regions and in terms of who I
deal with I've worked with as as young as 22 I had a 22 year old save his money and buy a beautiful house on 800 square meters of land in a suburb called Eureka I've had first-time investors couples families who have decided that maybe one party you know the husband
is excited the wife's a bit nervous or vice versa one party's a bit anxious at the idea
of spending you know a million dollars or eight hundred thousand dollars so for them it's a dunking the ton of water but it's also a chance to get familiar and confident and once you've got confidence and once your partners on board then it opens up those emotional blockers and you can start investing in capital growth assets as well but I've also had I've helped someone who wants to do a free site subdivision and had fantastic plan good feasibility assistance at his fingertips and you know in the shape of a very responsive town planner and designer I've also worked with investors that have gone into higher price points and targeted a really beautiful part of the city knowing that they could have gone into Melbourne and maybe been you know in the middle or out of ring but they've decided being right in Soldiers Hill at Ballarat Central or Geelong City or Newtown they're banking on getting a better capital growth result in those amazing blue chip areas in the region what they would be getting in the gentrifying parts of Melbourne so there's a lot of conversation around the numbers as well because sometimes that is a reason for me to to take someone into an amazing part of a region it's because they do want capital growth and I feel that with the budget that they're willing to spend in the region they will potentially get better capital growth there than what their budget would get them it's a little bit more limited you know if you're working with a 600,000 dollar budget you're wanting capital growth in Melbourne it's a little bit harder and I've helped someone buy a re fitted out old pub in Soldiers Hill so it's this beautiful old hotel with an amazing history and it's a gorgeous townhouse now so yeah it comes in all shapes and sizes
Stefan Angelini
Yeah well there you go everyone if know your cash flows know what kind of property you want if you're looking for capital growth rental income Cate thank you so much for your time today it's been tremendously insightful for me and as well as everyone out there that's listening for everyone out there that's just a little bit on investing into regional properties obviously the case for investing into property differs depending on who you are if you've got any questions look feel free to reach out to me [email protected] or hit me up on Linkedin or Facebook you can find me Stefan Angelini even if you want introduction to Cate reach out to me and I'll put you guys in touch we feel that's that's suitable for Cate thank you so much for your time are there any parting words you want to leave everyone with
Cate Bakos
Yeah come on over to the bridge it's great what's beyond you know we've got some
beautiful regions and they're not just all on the Western side of town but yeah it's definitely worth exploring and if just spending a weekend away in a region is enough for you to you know wet your appetite and and think about the virtues of it obviously you've got to have good reason you know good fundamental reason to do it but yeah the regions offer a lot
Stefan Angelini
Amazing amazing alright thanks again Cate thank you everyone for listening reach out if you've got any questions and we'll see you soon
Cate Bakos
Thank you