Regional Vic

Just after some advice, where do you think the best place would be to invest in a House under $150k in Regional Vic?
Places i've been researching

Ballarat
Bendigo
Moe
Sale
Traralgan
Shepparton
Bairnsdale
Morwell
Wangaratta
Horsham
Warrnambool
Geelong (Corio & Norlane)


Cheers
RT
 
If you have to go regional, my choice would be Geelong (its near water - always good for CG) and only a 1 hr commute to MEL.
Also you've got Avalon airport not far away.
 
RT, this thread has Victorian Median House Prices for decade of 1997-2007, plus growth per annum..

http://www.news.com.au/heraldsun/files/median house prices by suburb.pdf

I invest in real estate, some of it is near water, some of it isn't, and some of it was and it evaporated.:)

My regional investing has been kind to me, in many of the places I also bought well so it's double kindness.;)

It is, or will be up to the individual, (investing), what your situation is, circumstances, wants from investing, the financial fuzzy wuzzies, for me it was affordable entry into property in areas that I know inside out, having lived in or am in frequently..as a smarter person than me said, "there can be diamonds in your own backyard"

I have some older statistics as well as the decade 97-07, they are 94-05, so will throw those in too.


Bairnsdale (is close by water).......Change in median house prices 94-05: 115%.....97-07: 147%....growth P/Annum: 9.5%

Ballarat(had a lake or two, does that count?) ..........change in median house prices for 94-05: 153%.....97-07: 176% Growth P/Annum: 10.7%

Bendigo...........138%...........170%...........10.4%

Moe............69%..............141%...............9.2%

Sale..............126%.............153%.........9.7%

Traralgon............115%...........178%..........10.8%

Shepparton(something to do with the mighty Murray river)............99%.........132%...........8.8%

Morwell..............95%..........184%..............11%

Wangaratta...........92%..........148%..............9.5%

Horsham...............88%..........88%...............6.5%

Warrnambool (Has a sea nearby :) ).....145%.......169%.......10.4%

Geelong.......175%..........198%..............11.6%

Corio ..........106%.............154%...........9.8%

Norlane..........125%...........168%............10.4%

Mildura also on the Murray.....94%..........126%............8.5%

So there is a little something to throw in the regional investing diligence kitbag.

Keep in mind when I first started investing in regional Vic I had no idea of these stats, it didn't matter, I knew Bendigo over years, I knew it to be spreading out, developing, getting bigger and even more interesting. I knew that it was difficult to get a rental property...through my experiences and family trying to rent there. I knew it had many industries, I knew it to be reasonably close to Melbourne. Keep in mind Melbourne is not where the sun rises and sets for investing. Everyone has different circumstances/goals/wants and needs and knowledge...there are a lot of investors investing in regional cities and towns, chasing the deal and good deals....some of them are local investors, investing in their backyards, and some are from metro areas/interstate, some haven't even clapped eyes on what they have bought.

Make no mistake investors do invest in regional areas, and do it quite successfully.

The decision is up to you...it is your decision to invest, (congratulations!), love it!! and what you invest in and how you go about educating yourself and reeling in the diligence, may it all be fun for you.
 
By that logic, the entire western, northern and outer southeastern suburbs are armpits as well.

Everyone loves to kick Moe. Believe it or not, the Jaiden Leskie situation was 12 years ago. We now hear daily in the news about constant murders and bashings etc, guess what?
They aint in Moe.

Take notice where the vast majority of violence and crime occur, every night on the news.
 
Murders?
Nope,
Moe is an Armpit,​
the whole area is still full of pensioned off SECV worker(?)s <--conflict in terms, with chips on their shoulders, entitlement issues,
huge unemployment, from people who wont work at anything without the same conditions they had when they were SECV worker(?)s.
Kids who wont work at anything that does nt have the condtitions dad had.
20 f'in years ago
and my former in-laws are there,
 
OK, you hate the place because your ex in-laws are there. Fair enough.

But I believe that there are many areas of Melbourne with lower incomes and worse social problems than Moe.

Anyhow, back to topic, a 150K maximum, seriously limits your options in many of these towns, but some of the things that should be considered when buying in regional centres are,

Type of property the tenants want/can afford.
Population growth, must be growing. Faster the better.
Average incomes/employment levels.
Major projects in the area that could make a town boom (or bust).
Infrastructure.
Access to Melbourne.
 
I'm looking at Traralgon. Was mentioned in Terry Ryder's "cheapies with prospects" and does seem to have a lot happening - new coal power stations, train station, etc. Seems to be more of a "stayer" than anything exciting, but some good rental yields, around the 5-6% to be add.

Affordable, good rental yield, new industrial developments, new transport developments. What more could you want?
 
but some good rental yields, around the 5-6% to be add.

Is 5% to 6% good enough for a regional town?

I'd like to invest in areas with a strong economy, and the economy is exceptionally strong in my part of northern NSW. But the rental yields are terrible. Plus house prices doubled since 03. So I just can't see the upside.

I'd think rental yields in my local town would be no more than Sydney right now.:eek:

For example, Brand new brick, 320k. Admittedly this is just the asking price, obviously.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=56696526&s=nsw&tm=1244843201

Renting for $270 week

http://www.realestate.com.au/cgi-bi...mt=&header=&cc=&c=9287272&s=nsw&tm=1244843346

There would be 10 brand new houses in town all with a 4% rental yield. Older places would have 5 to 6% yields, and the dumps even higher.

Funnily enough though, in the latest 'Australian property investor' mag it says Quirindi has a rental yield of 8.4%. It's just not correct at all. Complete and utter rubbish. If there was one house in town with an 8.4% rental yield it would be a total dump.

See ya's.
 
I'm looking at Traralgon. Was mentioned in Terry Ryder's "cheapies with prospects" and does seem to have a lot happening - new coal power stations, train station, etc. Seems to be more of a "stayer" than anything exciting, but some good rental yields, around the 5-6% to be add.

Affordable, good rental yield, new industrial developments, new transport developments. What more could you want?

Traralgon, was where the upwardly-mobile of the Latrobe Valley head, on the way to still larger centers, the one brother in law with ambition went there, and there seems to be a lot happening, Richard (b.i.l) is doing OK, self employed in the power station construction, good house
there are some very nice ex secv construction homes, roughly in construction to the returned service areas in heidelberg, solid small brick weatherboard or fibro.
under $150k is doable in the valley, 3 years ago when growth was a 'possibility' it would have been a certainty
 
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Originally Posted by topcropper
Is 5% to 6% good enough for a regional town?


Bayview:I don't reckon so TC.

Especially right now with the financial climate we are in.

Aaaaah, so many things, so many perceptions...

Picture the farmer with land a potential to yield the good crops that his neighbor is getting..BUT for whatever reason ...he doesn't outlay the inputs necessary, maybe one is direct drilling, the other a set believer in fallowing, is it not capable for the farmer with the different practices, excellence in farming techniques, mindset...to buy out that other farmer and lift the return?

Maybe for some AND depending upon the DEAL within that regional town/city 6% is okay, if it's relatively close to the cbd, if it is nearby schools, recreation facilities, is a nice place....some investors maybe happy with that, for when growth comes to town they possibly maybe sitting pretty.

I invest in a regional city as a friend does. He is a lot older, more streetwise, better with figures than me..he has lived in this city ALL his life, he thinks he knows inside out.:)

He is a multi millionaire.

He has achieved this through a mixture of business and property investing, he likes to think he has the finger on the pulse, knows who is up what kinda guy. I adore him.

However, in this same city he is buying IP's with the 6% returns, 7 and a bit of created 8% returns...you know, adding value reno boys style. (This guy is a handy builder).

I am investing in the same place and getting up to50% (some more:)) off advertised selling prices ....adding value, (not at great cost, most I can do myself-handy little country sheila I am;)) and getting returns of 14% and upward.

I have him a little puzzled and he also is in a little awe....he now asks me if any of these deals come up and I'm not interested would I handball them on...

Thing is they are right under his nose, he doesn't need me to be handballing anything...we are both successfully investing in a regional city and doing it very different, with completely different mindsets and applications of opportunitism and creativity.

What I am learning about investing in property is that there are the straight up vanilla investors, maybe then strawberry, then some that like a blend of everything in, then those that don't do icecream it's only gelati..

It can be anything you want, anywhere you want...how you think and approach and create will (likely) affect outcomes...an then there is/are opportunists...;)

Financial climates for some of us are....ummm, opportunity?
 
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