Hi Guys,
This is my first post in this forum, but I have been looking at threads for about a month now. Looks like a great friendly community full of knowledge.
I’m looking at getting my first IP in Bendigo area and just wanted to get peoples thoughts.
Good for you, my first IP was in Bendigo.
I have looked at Bendigo as the Capital Growth has been decent over the last 10 years and the rental market is quite tight from the numbers that I have seen (Is this correct?).
Historically Bendigo has averaged around the 9 to 10 and in some areas...the 11% growth p/a as according to Victorian Valuer General statistics, it is comparable to Ballarat. When I built my first IP there I had no idea of what capital growth even was, or an average growth p/a, I just knew the area, had lived there, had seen it prosper and diversify, spread out and seemed to be a strong enough entity as one of Victoria's major regional cities. I noticed there seemed to be an opportunity to still buy land at a price that I thought at the time 'good value'. I thought a stiff increase in land block prices was on the cards, I knew two new schools were about to be built where I was eyeing off land, close to the cbd, facilities...all that fuzzy stuff that makes an investor curl their toes in anticipation..
So I bought a block, (then another) within 12 months it had almost trebled in value, but I also built on them very quickly. So as not to just have parcels of land, but assets that were bringing me in $$$ to help with their mortgages.
I am looking for some thing that is CF+ or neutral, and that will grow in Capital by around 10% per year (will I get this growth in this area?), is it possible to find some thing in Bendigo like this?
This is...(almost?) impossible for me to answer you. I can only share information and my story about what I did there, anything else is my opinion and everyone has an opinion, they are a little like rectums? I mean that respectfully, historically Bendigo has averaged 9, 10, some places 11% growth over the last couple of decades...I personally don't see anything changing, but to point to any specific property and say...A, B or C will happen would be foolish of me, no help to you.
All I can say is from the knowledge and research I have about/on bendigo, I am happy, delighted to have some IP's there, over a 'short' time frame of 8 years they increased in value. BUT I also bought well at the time and feel I got a couple of good deals.
I would also like to add over the time I have had IP's in Bendigo I have had no difficulties in renting them out..it is my understanding from others around the area, both renters, owners and investors rental properties are rented relatively quickly, that has been my experience.
If so how would I go finding one because so far I have had trouble find one that will fit my criteria on realestate.com.au.
Sometimes things just don't land in our laps, sometimes we can create good buys, sometimes buying something other buyers (for whatever reason) pass over, but we might see we can value add something, eg a carport, a tidy up, a paint job, refurbishing, something to boost the returns as much as we can for least outlay possible.
Investing is a varied beast, one person's catch and set up is not always the same as anothers. I've never looked at investing and said what I cannot find, it's been more how can I turn that into a win/win, something that will be good buying, a good deal..
MY LOCATION CRITERIA:
PRICE: 200K -300K
CAPITAL GROWTH: 10% + per year
RENTAL YEILD: C/F+ or Close to Neutral
Low Vacancy % - high demand for rentals in area
Again with all respect, and this is only my take on this, someone else may have another view or different perspective, I am more a ..'get an idea of my budget-buying threshold'
Get Going, Get Creative and Get your Best Return possible on that IP so as I can shape back up to my mortgage broker and say lets do it again!
Bendigo was a good hunting ground, I am also (only my perspective) finding Horsham, Victoria another good hunting ground, but I work at creating, obtaining best deals possible.. and I do a lot of research. Then capitalise on it. I have not had any difficulties renting my IP's in any of the places I buy, usually while I have one hand on the contract of sale I have one hand on my phone organising a corporation or company or someone to rent the place for premium rent. If that makes sense, I am a networker, a negotiator, a rat up the drainpipe of opportunity.
I’m looking at buying a IP each year for the next 4 years. Would 20% deposit be enough for the finance on each one? Could you guys let me know of any other areas that would fit my criteria.
I have bought with little money in the deal and also with 20% deposits...I'm not sure I can quanitfy another aspiring investor's position on this.
Thanks for the help in advance
So glad you are contemplating IP's, hope it all goes well! I'm not sure I'm any help but anyway, it's sharing a bit of experiences..
Blake
