Ringwood or Warrnambool?
- Thread starter Chloe
- Start date
You'll get a better rental yield in Warrnambool, no doubt.
I'd say both capital and rental growth is more likely to be better in Ringwood over the long term, but probably not in the next 2 years or so.
I'd say both capital and rental growth is more likely to be better in Ringwood over the long term, but probably not in the next 2 years or so.
Let me flip it round...
Why Warrnambool?
Why Ringwood/Croydon?
("Why not?" is relatively easy)
What are you looking for out of either investment?
Why Warrnambool?
Why Ringwood/Croydon?
("Why not?" is relatively easy)
What are you looking for out of either investment?
Ringwood for the future capital growth, location, great amenities and schools etc although the rent is average at about $300-$340 for a 2 br unit unit.
Warrnambool for the cheaper housing prices (not hugely cheaper but enough to make a difference for me) and better rent. Approx $350-$390 for a 3 bedroom house or nice 2 br unit, maybe one of 2, 3 or 4.
Keep in mind i'm guided by my budget. If i buy in Warrnambool the rent will most likely cover all of the repayments or and least most of it.
Wish i had a capital growth crystal ball
confused:
Warrnambool for the cheaper housing prices (not hugely cheaper but enough to make a difference for me) and better rent. Approx $350-$390 for a 3 bedroom house or nice 2 br unit, maybe one of 2, 3 or 4.
Keep in mind i'm guided by my budget. If i buy in Warrnambool the rent will most likely cover all of the repayments or and least most of it.
Wish i had a capital growth crystal ball
confused:
Just wanted to read your opinions about these two scenarios.
Deposit is $110,000 maximum.
1. Buy in Ringwood/Croydon area, definately a unit.
Why, definitely a unit?
2. Buy in Warrnambool which would be a bit cheaper and better rent than in Ringwood.
I know nothing about the rental market or prices in the 'Bool, however could you have found anywhere further away from Melbourne? I would be looking at Geelong, Ballarat and Bendigo for regionals (in that order) before looking at Warrnambool.
In a further post you indicate that the rent from the W'bool purchase will cover all or most of your outgoings. I doubt it. Provide some figures on some properties you've researched to ascertain whether this is actually the case. I would confidently predict that gross yields will be higher in the regional, however sometimes not by as much as you might think.
Mr. Bear has nailed it with prognosticating the growth attrributes of your two chalk and cheese choices, however I will go out on a limb and propose that instead of two yeaars, it will be three to four years before any appreciaable capital growth is seen in most Melbourne markets unless one is manufacturing growth with active strategies.
What is your bottom line purchase price (include costs such as stamps, legal, building/pest, likely repirs, etc).? Perhaps then the opinion offered here may be more suitable.
Thanks!
Start broad and narrow down your filters. You had another thread if I'm not mistaken on Ringwood and now you're asking for opinion b/w this suburb aand a regional area circa three hours drive away. Perhaps (in a broad sense) compare Metro (eastern) Melbourne with (say) some cheaper Geelong or Ballarat suburbs, then narrow down your choices to refine the sorts of questions you ask here. Also look deeper into archives here with the search function under the appropriate s\sub-forums. Read a bit and also have a look at mags such as API, YIP, etc to see where things are heading and get an idea of indicative gross yields. Everything read in these should be taken with multiple grains of salt as they are property mags, however it may alert you to trends.
Good luck and, don't rush...................Melbourne may soften a little further (at worst) or trend sideways (at best) for a while.
Thanks player,
Ideally Ringwood is where i would prefer possibly even Croydon.
The more i look the more i panic about what i will get for my money in Ringwood. Because my budget is not massive i need to see where i will get the best house/unit for my money.
I can be looking at a place for approx $350,000 maximum and that is with all fees included.
I did search this forum for old Warrnambool threads and only one came up. It actually had a lot of good things to say about Warrnie.
I think i'm also worried of worst case scenarios and thinking of other options if Ringwood does become out of my reach.
Ideally Ringwood is where i would prefer possibly even Croydon.
The more i look the more i panic about what i will get for my money in Ringwood. Because my budget is not massive i need to see where i will get the best house/unit for my money.
I can be looking at a place for approx $350,000 maximum and that is with all fees included.
I did search this forum for old Warrnambool threads and only one came up. It actually had a lot of good things to say about Warrnie.
I think i'm also worried of worst case scenarios and thinking of other options if Ringwood does become out of my reach.
Does it have to be in Victoria ?
What about Sydney ? With that deposit, you can possibly get a 2BR unit with good rental yield and possibly good growth in the near future ?
Cheers
What about Sydney ? With that deposit, you can possibly get a 2BR unit with good rental yield and possibly good growth in the near future ?
Cheers
I'm biased because I live in Heathmont, and we were lucky enough to buy here before Eastlink was completed, so we've seen some pretty good upside on capital growth AND rent in the last 5 years.
I agree prices appear to be going nowhere in the next 12-24 months in/around Heathmont/Ringwood.
There are some basic 2 unit places with original features still available in the sub $350,000 market. I know a Unit 1/285 Canterbury Road being available on the market in a couple of weeks (that I'm not involved with), they're looking for $310,000-$340,000 and they still have shagpile carpets (still).
The Ringwood area for me is still a viable long term capital source - with Ringwood station getting a major overhaul in the next 3-5 years, and the possible Wesfield re-development to rival Doncaster, if you're holding beyond another 5 years, hard to go wrong
I agree prices appear to be going nowhere in the next 12-24 months in/around Heathmont/Ringwood.
There are some basic 2 unit places with original features still available in the sub $350,000 market. I know a Unit 1/285 Canterbury Road being available on the market in a couple of weeks (that I'm not involved with), they're looking for $310,000-$340,000 and they still have shagpile carpets (still).
The Ringwood area for me is still a viable long term capital source - with Ringwood station getting a major overhaul in the next 3-5 years, and the possible Wesfield re-development to rival Doncaster, if you're holding beyond another 5 years, hard to go wrong
I doubt the Ford Street property will go for less than $350,000 - nice features though, slick
I would go for Ringwood because I know the area, and know as much about Warnambool as I do Sydney.
The Y-man
I may be biased in my opinion as I have two properties in Ringwood + Ringwood North (long term buy and hold potential sub division), in my research into Eastlands (QIC group) owning the majority of commercial land in and around Ringwood, with a 5 stage half a billion dollar development plan which started early Jan this year + a new train station/bus exchange according to the minister for transport commencing construction in less than 3years time, 46million dollar Ringwood Aquatic Centre redevelopment commencing July 1 this year and several private schools in the area there are alot of good key points for the area, the Y-man is right about getting some land as apposed to a unit would be good but it all comes down to your cash flow/ lifestyle commitments.
Good luck with it all
Good luck with it all
I understand everyone's reluctance with warrnambool being so far away from Melbourne (or any other capital city) but there are huge upsides. I have IP's now in both Melbourne and Warrnambool and would never have looked to the Bool if i didn't have to go to the area for work reasons but I am so glad that I have. There is industry galore popping up in the area ie:gas plants, wind farms etc etc and unemployment is very low. There are very low vacancy rates, high paying jobs, Deakin uni, beautiful beaches, approachable council and many more benefits that I can think of for investors. It is undergoing a transformation with the gas industry exploding down here like Karatha and Gladstone have (but obviously on a much smaller scale).
I work in the gas industry and there is alot of money down here for what were- very modest house prices around 5 years ago. Warrnambool has been through a massive growth period over that time and I can only think that it will continue with the amount of approved wind and gas projects about to start over the next 5-10 years. I am happy for everybody to continue to invest in Melbourne (and I am always on the lookout too) but i continue to always keep a keen eye on the local market because the general rules of regional city don't apply down here in my book. It really is a different fish to the Bendigo's and Ballarats of the state because of the resources that are being developed
I work in the gas industry and there is alot of money down here for what were- very modest house prices around 5 years ago. Warrnambool has been through a massive growth period over that time and I can only think that it will continue with the amount of approved wind and gas projects about to start over the next 5-10 years. I am happy for everybody to continue to invest in Melbourne (and I am always on the lookout too) but i continue to always keep a keen eye on the local market because the general rules of regional city don't apply down here in my book. It really is a different fish to the Bendigo's and Ballarats of the state because of the resources that are being developed
http://maroondah-leader.whereilive.com.au/news/story/your-say-costco-coming-to-ringwood-or-notr/
Looks like it's later, rather than sooner...as will the train/bus interchange...both sides of the government the last few years have been mucking around with the timelines for the Ringwood reno....
Looks like it's later, rather than sooner...as will the train/bus interchange...both sides of the government the last few years have been mucking around with the timelines for the Ringwood reno....