Hi mate,
Sorry for not seeing this one sooner.
I like Bendigo for a lot of reasons. It has a self-sustaining economy, draws on towns and properties around it so has a larger base than the 100,000 people that reside there and in my opinion is due for some growth.
The Cap Growth numbers I have seen put it at doubling in value between 2000-2004 and then about 10% since then. This lull and in my opinion undervaluation lends me to think that it is time for a rise. Rental returns are good but are easing as Melbourne investors head up there.
Entry price is good. I bought a 5,000sqm block with a 26sq 4 bedroom house on it in Golden Square for $389k. Depending on what size I want to make them I can put 4-9 units on the back of the block with the front house still valued ~ $310k. Great price for land.
To answer some of your questions more directly:
* Ex-housing commission properties in suburbs such as Long gully
- Low maintenance (brick)
- 6.5% return (according too local real estate agents)
Answer: Ok I probably would look to some better suburbs within Bendigo but it depends on what you are after. There are some really good set and forgets - 2 bedroom brick units for $149k renting at $185/week was one I saw that springs to mind.
* Vacancy rates
Answer: check sqmresearch.com.au but from memory they are quite low - 1-2%, inline with Melbourne
* capital grow for long term
Answer: as above I think it is time (my opinion only however)
* development of land with old house's on them ??
-zoning ?
- user friendly council ??
Answer: same zoning as Melbourne. Things to be careful of are HO (Heritage Overlay), to check mine reports which need to be on the s32 and any old creek beds. Try to avoid all if possible.
Good council - faster turn around then Melbourne and if you get in with good people then it can go smoothly.
I have recently setup contacts there so drop me a line if you need to talk to anyone from up north.
Cheers and good luck!
Ben
