Horsham, Vic.

Whats peoples thoughts on an IP in Horsham Vic?
Population around 14000, main industries seem to be related to farming and hospital and schools.
Anybody have any info on upcoming projects or major bussiness plans for Horsham?
Any idea on vacancy rate?
Some very affordable homes with good returns.

Sorry for all the questions..

Cheers Jas.
What are people's thoughts on an IP in Horsham Vic?

I have IP's in Horsham Jcat, a mixture of older and new, also some land blocks I bought because I thought they were good value at the time. Their value has almost doubled and I am taking quite a few calls enquiring if I'm interested in selling them...(I'm not:))

I have a couple of friends also invested in Horsham, (over a much longer time frame than I have)....just started buying what they could afford and now have a couple of dozen or more IP's each, all gone up in value, plus their units, plus their constructions.

All of us have no difficulty renting them out, anything becomes vacant re rents no problem. Our IP's are all well presented

Population around 14000, main industries seem to be related to farming and hospital and schools.
Anybody have any info on upcoming projects or major bussiness plans for Horsham?

You may not realise, and I know I have said a bit of this here and there --Horsham is the Capital of the Wimmera, catchment area population was around the 55,000.

It has some very attractive tourism areas nearby, to name a few, ie National Parks:


The Grampians National Park (also Gariwerd) is a national park in Victoria, Australia, 235 kilometres west of Melbourne. The Park was listed on the National Heritage List on 15 December 2006 for its outstanding natural beauty and being one of the richest Indigenous rock art sites in south-eastern Australia.

The Grampians feature a striking series of sandstone mountain ranges. The ranges were named in 1836 by Surveyor General of New South Wales Sir Thomas Mitchell after the Grampian Mountains in his native Scotland, but are also known by the name Gariwerd, from one of the local Australian Aboriginal languages, either the Jardwadjali or Djab Wurrung language..


Mount Arapiles is a spectacular feature, rising sharply from the Wimmera plains to form part of the Mount Arapiles-Tooan State Park. The park includes Mitre Rock, adjacent to Mount Arapiles and the Tooan block. The 7475 hectare park is valuable for nature conservation, with about 14% of the State's flora species represented in the Mount Arapiles section alone..

Mount Arapiles, widely regarded as the top rock climbing area in Australia, is of world renown.

Two short walking tracks link Centenary Park to the summit of Mount Arapiles and the sealed Lookout Road gives easy access to a short walk that leads to the summit. There is also a short but interesting nature walk from Lookout Road.
The vehicle track which circles the Mount is suitable for cycling and driving and is a good walk in wildflower season. All but the eastern end of the track is closed to vehicles during winter.
Birdwatching, painting and nature studies are also popular activities.

One of my favorite haunts:


The Little Desert National Park is situated 375 km north-west of Melbourne.

The three blocks of the park have a rainfall range of 400 mm per year in the north-east to 600 mm in the south-west.

The range of soil types causes marked differences in vegetation across the areas.
Here in the Little Desert - a desert in name only - you can discover how many species of plants and animals have succeeded, on poor soils with little water, in creating a kind of arid landscape where survival depends on maintaining a delicate balance of natural forces.

The best time to visit the park is between late winter and early summer when the temperatures are comfortable and the park is full of blossoms and wildflowers. The eastern block is the most accessible

That farming land often mentioned, happens to be some of the finest farming land in Australia.

It's certainly taken a hit over the drought, but because the area, Horsham is a regional "catchment city"...it is the service city for all the surrounding communities. Things get shuffled around, farms can be bought and sold...

Also some increased manufacturing... takes off again after financial crisis ebbs:


[QUOTEPosted Wed Feb 10, 2010 1:50pm AEDT

The Australian Industry Group (AIG) has welcomed the expansion of manufacturing company CMI Industrial, which has plants in Ballarat and Horsham.

CMI, which makes specialist metal and plastic products, is expected to increase its Horsham workforce by 50 employees.

The company went through its toughest time last financial year and decreased workers' hours to remain viable.

A spokeswoman for the AIG, Kaye McCauley, says it is fortunate CMI held onto its skilled workers during the downturn

As far as we know the mining is still going on, haven't heard any different:


The Pipeline has finished, years ahead of schedule:


Australia’s Wimmera Mallee Pipeline Completed Six Years Ahead Of Schedule
Source: Government of Victoria

Posted on: 15th April 2010

Australia’s largest water infrastructure project, the Wimmera-Mallee Pipeline, has been completed six years ahead of schedule, securing the region’s water supply and providing a lifeline for towns, sport, farms, rivers and businesses.

In Horsham, the Premier John Brumby today announced the completion of the Wimmera-Mallee Pipeline project and said its completion signalled the end of water supply uncertainty for the Wimmera and locked-in the future prosperity of the region for generations to come.

“I am delighted to be here today to celebrate this momentous occasion with Wimmera and Mallee communities who for decades to come will have a secure water supply for their towns, lakes, gardens and sporting grounds,” Mr Brumby said.

“After more than 13 years of drought these communities faced the very real prospect of running out of water but the fast-tracking of the Wimmera-Mallee Pipeline project has secured this region’s future and means it can continue to grow and thrive.

“The Wimmera-Mallee Pipeline is a great example of how governments can work with communities to achieve major benefits for regional and rural prosperity with the project fast-tracked and completed in three and a half years instead of the 10 years originally proposed.”

Any idea on vacancy rate?

Actually, I wouldn't have a clue on figures, but I know myself, and the other few investors have not had any troubles renting. So, can only speak from personal experience on that.

Some very affordable homes with good returns.

Yes, Jcat, there are some nice investing opportunities in Horsham.:):D

Sorry for all the questions..

Questions are no trouble, you are welcome...all the best with whatever and wherever you invest..

Cheers Jas.

Thanks for the reply..very interesting.

After doing a search, i've noticed in one of your posts CG figures for regional cities in vic between 97-07.
Horsham was one of the lowest performers. Whats your thoughts on that?
Is it that Horsham will catch up, or already has?
RP data shows Horsham has increased by about 15% so far this year? Is that how it reads?

Cheers Jas.
I was looking at Horsham (and still am). Relatively inexpensive entry point.
However, be wary of older houses in Industrial zoning....

P.S: Industrial Zones in Horsham have a much lower re-sale value, not much takers maybe....
Thanks for the reply..very interesting.

After doing a search, i've noticed in one of your posts CG figures for regional cities in vic between 97-07.
Horsham was one of the lowest performers. Whats your thoughts on that?

The drought and financial crisis certainly steadied things up for a few years. But I was buying/negotiating well under what other comparable houses and land were selling for, so I made money? at my purchases.

Is it that Horsham will catch up, or already has?

With my land blocks (I bought), I am taking a few phone calls (agents/private buyers/builders) a week to see if I will sell them, some of the offers are almost double over what I paid.

Our older houses have had an increase in, (again), comparable sales (now), of 30% to 100% over 4 years. I bought at lower than what others were paying for....again buying well. To accumulate what I have, has been at a relatively comfortable affordability level, (for us), with good rental returns (on the houses)

RP data shows Horsham has increased by about 15% so far this year? Is that how it reads?

That sounds nice, but I take very little notice of short term stats like that...I invest to the beat of my own drum/due diligence...it's possible it may mean something, or be influenced by...I don't know what? or mean nothing? Maybe someone else might be able to help you with that.

Cheers Jas.

Relatively L-O-N-G P-O-S-T :)

That was median house prices, over the decade, with an average of growth, for the decade.

I don't base my investing upon those statistics, I have learnt to "look at the deal"....buying well, good overall research...and weigh up the deal.

Is it just me, or does anyone else consider median a useless stat?

I think you raise valid points about statistics, (perhaps more so in a general context), and the need to apply the old adage: "subject to interpretation".

Long term statistics, I am inclined to give a little more creedence too, and don't forget this pdf document includes (over the decade), a growth per annum..

*NB The pdf data from the Victorian Valuer-General does note and bring to attention if sales have been 10 sales or under for the town/city.

2. Residex, has a bit of an article, here:


"We explain medians, and how they're not always a good way of understanding a suburb's true value (see article)". It's quite interesting also.

PDF link: 1997-2008 10 year median prices and growth per annum again:

http://www.thedatahotel.com.au/median house prices by suburb.pdf

Do your due diligence for your investing and never hesitate to question why's and wherefore's


The valuer general's valuations went from being too low before 2000, to too high after, when it became a nice big cash cow.
Whilst interesting to see, median prices are useless without local knowledge, valuer general prices are probably worse

My investing style/personality is such I love the research and discovery/education on areas I choose to invest in. I have never based any investing upon Victorian Valuer-General statistics.

However, knowing the areas I do, I must say I found the VVG's statistics to be fair and reasonable (if not on the conservative side), representation/reflection of what is occuring within the towns and regional cities, that I am quite familiar with.

I find the longterm statistics useful and interesting...but certainly not a replacement of my own due diligence.

Great, as the summary of local government areas...an overview of property sales within an area.

The data and statistics themselves is from settled property sales documents, which is collated by Vic Valuer-General...while there is acknowledgement of regarding data with a good dose of trepidation, this data is actually considered the most authoritive property sales data in Victoria.

Having said that, in a few earlier posts I did make mention of pitfalls to be aware of, eg for sales 10 properties and under there is always a note of this and how it can distort statistics.

I also think it important for newcomers to this site to understand there is opportunity for property investing across a broad range of areas in Victoria, low affordibility entry into investing, learn to give skepticism to relatively short term statistics being splashed around...it does not really reflect an area. Thus I look at decades with a little less skepticism.

...and the other thing is when it all boils down, provided people do good research, due diligence, educate themselves and about areas, buy well for their circumstances, it can be regional areas as well as metro. The statistics give a good general overview of much of a muchness...
keep in mind the high enders/top performers, as well as the lowly low end areas....and remember the constant thing is: "change"..

The glory of property investing is that it can be whatever we make of it. 100 investors doing it differently, different areas, regions, styles, strategies, but (hopefully) successfully.

And...a thread on:

Median values don't reflect the real world (KeithJ)


Excerpt...and it's another interesting read

I agree that the median has faults, especially when a particular demographic (like FHB) disappears from the market. However, until recently it was the best the ABS & others could come up with. What stat should we be using instead ? RPData have come up with the Hedonic Index which is an improvement over the median. It calculates the 'average' based on sales of similar types of houses. They release it towards the end of every month - see here.

As an example of the flaws of a median - 200 sales of 3 bedders and 100 sales of 4x2 in a suburb would give a median skewed towards the lower end of the range. If FHBs disappear, there will be only 100 3x1 sales, but 200 4x2 sales - consequently the median will jump towards the higher end of the range. So the composition of the data has an effect of the median, even if every single one of those houses sold for exactly the same at it did in the previous period....so on

Jcat, I have something I can email you, I think you may find it (also) interesting and perhaps more rounded with it's info, PM me if you want. Unfortunately I'm not able to post it here..:(
Ah! Horsham!

One of my very favourite places and occupies a special place in my heart!

My very very very first mortgage customer (thanks, Simon!) was in Horsham (still is!). He bought #76 and recently other customers of mine bought #78 – this got rented to the Daughter of #82 while they were still working on it!

I think that since 2003 there has not been a time when I have not been working on a deal in Horsham. At one time last year I had four construction loans in the same court, and all with different lenders. Never had any problem getting finance for buyers and the buyers have never had any problem getting tenants

In my experience over the past seven years the increase in rent return has been significant and the increase in prices / values has been considerable.

For example #76 was bought for $68,000 in 2003. #78 was bought for $118,000 in 2009. #78 rents for $175 per week.

On a capital basis, the two adjacent properties are very similar being ex-Housing Commission cement sheet & tile three bedroom family homes.

In a straight line, the capital growth is 75% over 6 years, not bad at all for an area which appears to have had no growth.

#78 is achieving a 7.7% gross yield. This just about covers interest and outgoings and considering that my purchasers have no money in the deal (borrowed $126,000 including equity from another property) then leaving aside the tax benefits, gross rent of $9,100 per annum less interest expense on $126,000 @ 6.41% = $8,076 per annum – so the property will be costing them slightly under the Rates, Insurance and Property Management costs to hold.

Since buying #78, my customers have also bought #9 and #11 in another street. They have gone from nought to $42,000 per annum rental income. For three purchases totalling $563,000 they could not have bought one property in their home area in Melbourne and if they could, they would be achieving about $25,000 per annum rent.

As Our Obsession said, it is all in the deal. No point in buying in a low growth area if the rent return is also low. A Golden Rule is ‘show me the cash flow’ and this comes down to choosing the property well, structuring the finance properly, and making sure that the property can achieve it’s optimal rent.

If the property is a bit tired, it is worth having a professional cleaner go through, maybe a coat of paint, attending to any maintenance items particularly making sure that all appliances are working properly, and having the garden spruced up to enhance street appeal.

There is no such thing as a free lunch and there is no such thing as a Great Deal in Horsham, or anywhere else, without putting the work into the deal and probably, into the property as well to make sure it is as well presented as possible and exceeds market expectations.

Market expectations for rental properties, in many areas, is quite low. If you can present the property above the ‘mean average expectation’ for the area then you will be rewarded with a higher rent, a more satisfied tenant, and a better investment.

Horsham has ridden out economic downturns, droughts and the changing expectations of property owners and tenants.

It is a very stable economy and is there for the long haul.

Jcat, being in Geelong you have a head start on getting to know Horsham and perhaps spending some time there or allowing a weekend or two to spruce up your new purchases.

They tell me the steaks at the Commercial Hotel are the best in the Southern Hemisphere, an added bonus!

You could certainly do a lot worse than to invest, or to live, in Horsham.

Hi everyone...I'm new to the forum and have been looking at Horsham. You all have provided some great commentary in relation to Horsham and the support systems this forum creates and encourages is truly fantastic. It's a great community of like minded people.

Horsham West appears interesting and I've heard that there are homes being removed in this area and people are developing the land into townhouses. Has anyone got any experience or thoughts about Horsham West and in particular future development in the area? And...the general attitude of the local council regarding such development...are they progressive?

Cheers, Jack
Just in regards to Horsham:

Horsham 2040 Growth Strategy

The 2040 Plan has been prepared by Council and describes a proposal for growth management of the Horsham City for the next 30 years or so.

This is a land use concept plan, which describes the basis for sustainable growth of Horsham, considering the needs of current and future populations in respect of accommodation, employment, healthy lifestyles, sport and recreation, education, entertainment, retail, and the capacity of Horsham to continue to serve as the regional hub of rural enterprise in the Wimmera Region.

The growth strategy for the City of Horsham is available for the interest of members of the public, Government agencies and other bodies.

The strategy acts as a blueprint to inform Council and its Planning Scheme, together with other agencies, to guide the future growth of the City and its fringe areas.

For information on the Council's 2040 Plan, contact Tony Bawden.

From here:


The 2040 Plan itself is just a download click to your right of screen on that link.
There is a problem with higher than normal vacancy rates at the moment.

Is there?

Only been investing in Wimmera 4.5 years, but had no difficulties renting out (resi only), mixture of, (well presented), older and newies. A friend who has many more resi and commercial IP's has been investing 20 years there and never had delays in renting, he has mixture of (in resi portfolio) units and houses, I'm only houses as yet.

My last rental was couple of months ago, could have filled 5 more IP's with applications, (working on that:)) friend is (currently) filling units and a house, no shortage of applicants.

Are you having troubles personally with finding tenants? I'm interested to hear more.
I've recently been in contact with one of the real estate agents in Horsham who has been helpful in giving me his opinions on the market...(taken with a pinch of salt of course). I asked him about the vacancy rates and he seems to corroborate OO and I quote....'With vacancy rates we only have 4 properties available and we manage about 220. It all depends on price as well to how long they stay on the market for but generally they get leased quickly.'...with active investors with real on the ground knowledge sharing their experiences on this thread together with professionals in property management all backed up with favourable statistics it appears Horsham's rental market is generating healthy yields and will continue to do so.