Thoughts on Regional Vic

[JessP]

Like shares?

 

[tobe]

Like shares?

perhaps, its a pretty individual question. Why do you think you have to sell quickly? What is the need you think you might have?

Perhaps borrowing a bit extra and leaving the extra funds in an offset account will give you the same result?

 

[JessP]

I guess it's a get-out-of-jail-free card? If I end up with an underperforming property, I can sell it and cut losses/take profit sort of scenario.

 

[tobe]

hmm, get out of jail free cards are for monopoly. Id suggest taking a good hard long look at your personal risk profile and then look at ways of mitigating the risks identified. This might mean a diferent sort of asset, or it might mean taking out diferent types of insurance etc. landlords, income protection etc. it might be fixing and pre-paying the interest on the home loan, it might be borrowing extra for sleep at night funds.

Horsham may or may not be a market that can be sold within 3 months. But then, parts of sydney might not be saleable within the same sort of timesframes, depending on the wider and local markets.

Anythings saleable quickly, for the right price. Usually quick sale means cheap sale.

 

[bbmick]

So, it seems that the Vic Regional populations have been growing faster than normal the last few years..............

Victoria's 10 biggest regional cities, growing twice as fast as they were just a few years ago, have called for up to $4.4 billion to be spent on infrastructure and key services over the next 20 years to keep pace with surging growth and relieve pressure on Melbourne.

The population of the 10 regional municipalities could jump by as much as 288,000 by 2031, according to a new report that examines what further transport, health, education and other infrastructure and services they will need over the next two decades.

Under this ''high growth'' scenario, they would house more than 1 million people by 2031, but would require $4.4 billion of investment, the report finds.
http://www.theage.com.au/victoria/regional-cities-seek-44b-20130311-2fwhg.html

I'm thinking any place people are actively seeking to live has gotta be a good thing for the regional investor......

 

[Peter 14.7]

So, it seems that the Vic Regional populations have been growing faster than normal the last few years..............


I'm thinking any place people are actively seeking to live has gotta be a good thing for the regional investor......

Provided it is right people. Grow does not make it good.

I grew up in Shepparton and it is a dive now. Very low rent. We had and IP there , inherited and we sold, no CG grow and problem tenants.

If high income family are moving there then prices will rise for low income renters etc to move out. If low income families move then then high income move out, then prices will drop. Cruel but true.

Peter 14.7

 

[octain]

Octain - where do you see Horsham in terms of capital growth? Seriously considering a couple of the houses there. The only thing that is holding me back is the worry that they won't sell very easily if needed. Looking at them, a quick reno would be easy and being CF+ would be a good little asset.

Anyone in the area that can look at it for me? I was in Vic last weekend and hadn't planned on another trip quite so soon lol.

Also: being a regional town, is the LVR lower? Could I borrow 90-95%?

You can easily get properties rented above 9% return. with good tenants in a town that has a 1 - 2 % vacancy rating. my personal belief is with returns so high at some point price will have to move to lower these returns.

I have no emotional connection to horsham and its a purely investment decision for me. We looked at a lot of places and couldn't really fault it. I know we looked at stawell and returns where around 7 - 8 % smaller town and the mine is closing down there.

Horsham while it won't change the place has a decent sized mineral sands mine opening up. So far Ive been pretty happy with my investment there.

I like the elizabeth or phillip st area. There is a few ex-commission style streets there. However their right next to the newer development in horsham. so their cheap but surrounded by nice houses.

 

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Info on Ballarat

 

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Regional House Prices Hit Median Record

REIV regional update



Regional house prices have risen to a new record median of $327,000, representing a solid 4.1 per cent year-on-year growth.

For units in regional Victoria, the median price was $254,000, up two per cent year-on-year. The data, finalised this week by the REIV for the year to June 30, provides a counterbalance to news earlier this year of employment changes in some areas of the state by major employers such as Qantas and Alcoa.

Fluctuating employment levels can exert a cooling effect on growth, however regional property prices are being buoyed by continued record low interest rates which have been on hold for the past 11 months. Beyond low interest rates, strength in the broader regional economy is being driven by investment from all levels of government.


Encouraging announcements tied to budgeted funding have provided a real confidence booster for the long-term outlook of regional Victoria.
This helps to improve the livelihood of major towns and cities, and attract more Melburnians to move to country Victoria ? and buy into the local market. Announcements such as a $25 million investment by the state government on the establishment of critical infrastructure and services in the Ballarat West employment zone.


This project alone is expected to create thousands of jobs and generate major economic activity in and around Ballarat.
Other projects in central Victoria include the redevelopment of the Bendigo airport, and the construction of the Bendigo hospital, lifting the attraction of the city.
A range of other work is under way which will improve regional access to the Surf Coast and the state?s west.
This is beneficial to those planning to buy into towns near Melbourne and commute to the city, or even for those making a tree or sea change.
Upgrades to regional roads include $750 million in major projects along the Princes Highway, and the $90 million connection of Geelong Ring Road to the Surf Coast Highway.


For those planning to buy into the west of the state, a $500 million duplication of the Western Highway from Ballarat to Stawell will greatly enhance liveability in the area.

Substantial investments with a long term focus are a sure encouragement that regional Victoria will play a large role in the continued growth of the Victorian economy.


Matt Leonard, chairman
Bendigo division REIV

 

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Good source of more local Bendigo region property info here @ Bendigo Weekly Real Estate News

Also:


Bendigo Weekly Property Guide