Bendigo - New Development Areas

M

m_yapa

Hi,

Im looking to build in Bendigo 4 bed with a mass builder with a budget of 310k. Then rent it out for 400 per week.

  • Is this possible in Bendigo new land released areas ?
  • Has any one built or bought new house in BENDIGO?
  • Hows the capital growth in these new land releases?
  • Is there lot of houses hanging around with out been rented out in these new estates?
  • What is the BEST new land release area in BENDIGO?


Thanks a lot for your feedback
 
1. Check the current rental prices and extrapolate from there including the timeframe of your project.

2. New house developments in rural/outskirt areas are EVERYWHERE. Lots of people have done it, whether they were successful with it is another thing.

3. Land prices go up, building prices go down. Like a new car, a new house will depreciate a great deal in the first couple of years. If your investment is for the long term (15-20 years) you can counter act this initial losing period.

4. Check the rental market.

5. There is no BEST.. Better to buy existing honestly. I'm highly skeptical of your numbers.

Cheers
 
Where is the development? Capital growth recently has been stagnant. Vacancy is currently running at 20% which is high at present it will reduce when the new hospital starts getting built. $400 pw is a lot to ask in bendigo at present as its a renters market.
 
I built at eaglehawk, finished in april. Im getting 335$ per week... others were asking 340 but sitting on the market for a long time...

atm u wont get 400 unless you have a over the top house, and for 310k i dont see this happening!..
 
brisbane 04 said:
Where is the development? Capital growth recently has been stagnant. Vacancy is currently running at 20% which is high at present it will reduce when the new hospital starts getting built. $400 pw is a lot to ask in bendigo at present as its a renters market.
Click to expand...

20%? SQM shows 2.2%
 
The rental market drops off significantly over $400 /week in Bendigo. I very much doubt those figures are possible for straight rental. Especially in a new development area (Epsom? Eaglehawk? Junortoun? Strathfieldsaye? Spring gully? Golden Square?). You are going to be further out from town with a mostly owner occupier group. What is going to make a renter go out to those outer areas to rent a house worth 310k,when they could rent a far better one for cheeper out there?
I don't think you will get a good rental return or capital growth in the near future with your plan.
 
Last edited:
alex9050 said:
1. Check the current rental prices and extrapolate from there including the timeframe of your project.

2. New house developments in rural/outskirt areas are EVERYWHERE. Lots of people have done it, whether they were successful with it is another thing.

3. Land prices go up, building prices go down. Like a new car, a new house will depreciate a great deal in the first couple of years. If your investment is for the long term (15-20 years) you can counter act this initial losing period.

4. Check the rental market.

5. There is no BEST.. Better to buy existing honestly. I'm highly skeptical of your numbers.

Cheers
Click to expand...
You have to pay stamp duty on a new car, you don't on a new house, cars get cheaper to build , house building prices go up. Land prices don't always go up. Ive always found you can build your own house about 20k cheaper than I can buy one a couple of years old and save about 12k in stamp duty, The beauty of building a house is that you can claim the depreciation, but the value of the house doesn't go down. None of my new houses have depreciated in value after a few years. If you buy existing housing you are paying an extra 40k for the builders profit, plus stamp duty.
 
alex9050 said:
1. Check the current rental prices and extrapolate from there including the timeframe of your project.

2. New house developments in rural/outskirt areas are EVERYWHERE. Lots of people have done it, whether they were successful with it is another thing.

3. Land prices go up, building prices go down. Like a new car, a new house will depreciate a great deal in the first couple of years. If your investment is for the long term (15-20 years) you can counter act this initial losing period.

4. Check the rental market.

5. There is no BEST.. Better to buy existing honestly. I'm highly skeptical of your numbers.

Cheers
Click to expand...
You have to pay stamp duty on a new car, you don't on a new house, cars get cheaper to build , house building prices go up. Land prices don't always go up. Ive always found you can build your own house about 20k cheaper than I can buy one a couple of years old and save about 12k in stamp duty, The beauty of building a house is that you can claim the depreciation, but the value of the house doesn't go down. None of my new houses have depreciated in value after a few years. If you buy existing housing you are paying an extra 40k for the builders profit, plus stamp duty.
 
brisbane 04 said:
Hi Dave,
I live in Bendigo. I have several rental properties in Bendigo. Rental vacancy is around 20% at present but improving.
Click to expand...

Thats cool that you live locally and have local knowledge... I am just curious as to where the 20% figure is from? A normal healthy rental vacancy (ie market is stable) is 3%. A 20% vacancy indicates a rental market that is dead, buried, decomposed and absorbed into a stinking putrid fecid slime. AKA a Justin Bieber song.

I too own in Bendigo and while I know the market is quiet at the moment, I dont see 20%?
 
Hi Dave,
This was the figure quoted by my property manager who I have known for 18+ years I have no reason to doubt her. I have also been driving around and seeing more for lease signs than I've ever seen before around Bendigo.
 
It's nothing to panic about in fact I just bought another property. It's cyclic it's just that time of the year. I still see good upswing and vacancy rates dropping when the hospital comes on line.
 
According to my research there are currently 37,000 dwellings in the Bendigo region.
Of the 37,000 around 9,500 of the dwellings are rented. The remaining are owned outright or owned with a mortgage.

A quick rental search of 'Bendigo' shows just under 400 results. This suggests that the vacancy rate of the rental properties alone is around 4.2%

If you take into account all dwellings (37,000) V's current avail rentals (1,500) then the vacancy rate is a touch over 1% which is the figure most people go off.
 
Last edited:
hungsunday said:
According to my research there are currently 37,000 dwellings in the Bendigo region.
Of the 37,000 around 9,500 of the dwellings are rented. The remaining are owned outright or owned with a mortgage.

A quick rental search of 'Bendigo' shows just under 400 results. This suggests that the vacancy rate of the rental properties alone is around 4.2%

If you take into account all dwellings (37,000) V's current avail rentals (1,500) then the vacancy rate is a touch over 1% which is the figure most people go off.
Click to expand...


Many of those properties would not be empty though. Lots are advertised as being available on x date. On the other side though, many private rentals wouldn't be advertised on realestate.com.au. I don't think you can put any faith in the figure.

And i assumed the rental vacancy rate was just that, the number of rental properties that are vacant
 
Best way to find out what the vacancy rate is is to call up a number of real estate agents in Bendigo and ask them. It may require you to ring about 10-12 agencies.
 
To answer the OP's questions, No, you cannot build a house worth $310k and get $400/week in Bendigo at the moment.

The current rental market is soft, due to a natural cyclical lull at this time of the year and an addition of a lot of new builds in the rental market. There are currently completing a lot of new 3/4 bed homes built for $300k, worth $330k and up for rent around $320-340/week. You would only be able to achieve $400 renting privately to people that the local property managers wont touch in my honest opinion.

Hope this helps and sorry to be a downer!
 
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