churchill, victoria

[fjficm]

hi all

i was wondering if anybody has much experience or a good general overview regarding investing in churchill
i have done much research especially with monash campus etc but it seems like the trend in prices and rent is declining or at best stagnant in this area
what you u consider a reasonable yield for purchasing properties over here or would you purchase at all
will the power station or the freeway factor be improving things in the future
can u or cant u see churchill be more than what it is in a few years time

thank you for any replies

[skater]

I looked at Churchill a couple of years ago when I was chasing CF+. Nice houses with good yields (at the time). What I didn't like about the area is that it is mostly a town full of students, so you get a large vacancy around Christmas.

Bought in Traralgon instead. Haven't been disappointed.

[DavidMc]

I was one of those students! Back in 1996-2000 we were paying $105 - $110pw for our place which at the time sold for around $42,000. I'm sure you're talking much more now. We also negotiated $20pw for the 3 month summer holiday period.

If you got in 4 years ago when you had nice high yields I would have said go for it but I view these areas as medium term investments (I don't have the patience to ride out those large flats).

[skater]

I was one of those students! Back in 1996-2000 we were paying $105 - $110pw for our place which at the time sold for around $42,000. I'm sure you're talking much more now. We also negotiated $20pw for the 3 month summer holiday period.

If you got in 4 years ago when you had nice high yields I would have said go for it but I view these areas as medium term investments (I don't have the patience to ride out those large flats).
I agree. It was about 5 years ago that we bought. The house more than doubled in price, which was nice. The yeild at the time was around 13%.

Not such a great investment now IMHO as I don't see any capital growth for a long time & the rents have only moved about $5pw. But, having said that, I don't intend to sell either as it is nicely cf+ which offsets some of my neg geared properties. :D

[cumown]

I own a few around the LV area. I think the area is still worth a good look. Yeah rent returns arent 10%+ anymore, but still higher than most areas with that sort of population.

If you are thinking about buying in churchill or doing nothing at all, then buy in churchill.

Dont have a go you'll never know.

Cumown

[Kristine..]

G'Day

Daughter attends Churchill campus and this time last year I did a bit of research on properties for sale in the town.

About half of the properties on my 'saved search' are still for sale.

There must be a sales market there as the other half are no longer on the list, but apart from the University Churchill is largely a dormitory town, not much employment and not even much retail. The students tend to drive in to Morwell for anything but basic shopping.

There are about 600 resident students attending the campus, the student residences are well appointed and the room rent of about $115 per week each includes utilities and a cleaning service. The academic / rental year is 34 weeks.

However, Daughter and some of her mates are thinking of renting a house for $140 per week, and I have done the cost analysis and even if they pay the same rent for a year plus their utility costs and have the grass cut every three weeks, they will still be ahead about $400 each, but have more responsibility.

We would be happy to buy a house for her to rent / share, and the houses are well built and while many are original SEC lots have been updated since private purchase form the Commission.

Here are some links to historic sales data for Latrobe which is not totally appropriate just for Churchill

http://www.doi.vic.gov.au/doi/knowyour.nsf/webPageSummaries/LGA-Latrobe+(C)-Residentiallanddevelopmentpluspropertyprices#vgpriceslga

and this is the link to specific detail for Churchill

http://www.doi.vic.gov.au/doi/knowyour.nsf/webPageSummaries/NEWTON-Churchill-All#

Note the vacant dwelling rate of 9.7%, however this does not mean that all vacant dwellings are available for rent.

If you are buying to rent in Churchill, the rental market is definitely skewed towards the student market, so you would need to be prepared to have a household of individuals rather than a family household as tenants.

As cumown said, if the choice is between buying in Churchill or not buying, then Churchill still presents a long term capital proposition with the opportunity of reasonable yield. Come the next boom, the ripple effect will still have an impact there and the University is constantly expanding creating it's own demand.

Cheers

Kristine

[fjficm]

thank you guys for youe comments
i do believe the yields and capital landvalue does not justify the price unless its like 20-30% below asking price

[Bluegem]

What about 'Morwell' or 'Hastings' on the peninsula?

[units4me]

My tip for that area would be Traralgon.
Reason, much higer rental demand.

[Bluegem]

My tip for that area would be Traralgon.
Reason, much higer rental demand.

Whys that?

For a +ve then mayby but for a CG id be more inclined to go for hastings.
You name me one suburb on the peninsula that has lost value? :cool:

Theres been planty of development down there along with an aquatic center, library. a heap of units, marina, etc

[DavidMc]

If they build another powerplant the LV will boom. Lets see how much electricity everyones AC's suck this hot hot summer....

[DavidMc]

Unfortunatley it looks like the Very Fast Train isn't very fast. That would have been a good boom for the area... Wasn't the original plan - live in Traralgon, work in the city, get to Spencer St in one hour.

[rodimus]

I bought in Churchill 2 years ago, the rent has gone up to $130 now, and climbing. (Last year was only $125).