Thoughts on Regional Vic

[engelo10]

Look into Mildura.

There are a lot of positives happening in the town like major retail outlets expanding shop. Vic gov is pumping money into solar plant around 30kms from Mildura. Rental market is very tight. Lots of properties selling quickly but prices are steady. Local profesionals expect the market to move up in the next few years. Mildura is one of the most affordable towns to purchase property in. Prices havent moved since 2004 so its about time something happens hahaha

Good yields to be found also.

 

[our obsession]

Update regional city Horsham:

Wimmera Rental Market Booming..

Excerpt only:

THE Wimmera's rental market is enjoying a boom period.
PRD Nationwide Wes Davidson Real Estate principal and managing director Wes Davidson said the rental market in the past six months was as strong as he had ever seen.
"It is the lowest vacancy rate we have seen and some months the rate has been zero, which means there have been no properties available," he said.
"There is more and more pressure being put on the rental market because more people are wanting or choosing to rent.

"Statistics show about 28 per cent of the Australian population rents but at the moment I would think that figure is a bit higher," he said.
Mr Davidson said the group would release a full market report for 2011 next month.

Coller Rathgeber Property Group director Tim Coller said the market was extremely tight.

"There are no immediate trends but we have noticed properties are being released at figures higher than they were previously tenanted for," he said.

"All in all it is very positive for both rentals and sales."

Also, REIV statistics show a median change from $199,500 (Dec 2010), to $249,000, (Dec 2011). Equivalent to an annual increase of 24.8%.

Ararat had no change.

The Horsham longer term growth average is around the 8%, Ararat's 10.8%.

 

[emptyvessel]

Any thoughts or knowledge about Wodonga? (And Albury for that matter. It is NSW, but they may as well be one town IMO).

I have been doing alot of research on the area and finding alot to like;
- Strong population growth. Large population ~34k (90+k with Albury. Catchment of 170k)
- Wodonga council is has an strong vision and plan for growth and are out there promoting themselves
- Transport infrastructure and geographic advantage. 75% of Aust pop. reached via next day (road/rail)
- Diverse employment base. Manufacturing is probably the biggest risk, but they know it and are working on addressing it.
- CBD redevelopment
- New estates and shopping
- New sporting facilities
- Strong education choices through to University.
- Industrial land is cheap and there are great incentives available.
- Lots of other little things I found along my way.
- strong water security

Tell me some bad things, because I am struggling to find them.

 

[our obsession]

Another update to build a picture of ongoing issues and happenings within the generalised market of regional Victoria:

29th February, 2012 ABC Gippsland: Rural rental reality check

Excerpt only:

Finding an affordable rental property in regional Victoria is more difficult than in metropolitan areas.

Rental vacancy statistics from the Real Estate Institute of Victoria (REIV), tell a stark story about the availability of affordable rental housing in regional Victoria.

"In general it's harder to find a decent rental home in regional Victoria then it is in metropolitan Melbourne. It's pretty difficult in many parts of Victoria," says the REIV's Robert Larocca.

Mr Larocca says the rental market squeeze in many parts of the state can be attributed to a population boom in Victoria between 2005 and 2010.

"That led to more people being in Victoria and there weren't enough homes being built. It has slowly improved but we are far below where we need to be and what we do need is more investment by mums and dads in residential rental stock. Not only that, but we also need more investment by government in public rental stock."----------Bendigo is one of the most difficult places in the state to find a rental home, with a vacancy rate of just 0.6 per cent, while the Ballarat region also has a particularly low vacancy rate of just one per cent.

"In East Gippsland and Wellington Shires in February the rental vacancy rate was a mere 1.8 per cent, in regional Victoria as a whole it was 1.4 per cent, but the more difficult story underneath that is the availability of what the state government classifies as affordable rental homes.

"Right across Gippsland, whether it be East Gippsland Shire, Latrobe, South Gippsland, or the Wellington Shire, there has been a reduction in the proportion of homes that are classified as actually affordable. That makes it harder for people looking for those sorts of homes."

Mr Larocca says the situation for renters is marginally better in Melbourne, where the vacancy rates are around 2.4 per cent....see article.

 

[our obsession]

nbn

nbn for horsham

by ted o'connor

29 mar, 2012 12:34 pm


horsham and haven will be hooked up to the national broadband network within the next three years.

Prime minister julia gillard announced this morning that 700,000 premises across victoria would have access to the high speed internet network within the next three years.


Work will start in horsham and haven in december, 2013, and the nbn co have indicated services would become available within 12 months.


No other places in the wimmera have been included in the three-year plan.


Bendigo, shepparton and albury will also gain access to the nbn within the next three years, but warrnambool, hamilton, mildura and swan hill will not.

-------------------------------------------------------------------------

 

[matto_]

One thing we noticed about country property purchase is that the real estate agents are a lot more helpful than in melb.

We essentially have called ahead and they will show you around a reasonable number that you are interested in as opposed to needing to fit into the open for inspection time slots.

 

[bbmick]

One thing we noticed about country property purchase is that the real estate agents are a lot more helpful than in Melb.

Yep, I've noticed my time in Maryborough Vic that agents are pretty helpful out on the country. Might be due to the fact that you're often dealing with the owners of the agency rather than just an employee.

As for thoughts on regional Vic....... I like most of it, but have only ventured into Maryborough so far. Interesting to come across an article this week about Maryborough's house price growth of 14% in the last year and their plan to grow the population in the district by 2025.

http://www.maryboroughadvertiser.com.au/wordpress/?p=5644

 

[our obsession]

A bit further on the NBN for some of the Wimmera, regional north west Victoria:

Horsham and Haven for NBN

Excerpt Only, Wimmera Mail Times:

Horsham and Haven to get high-speed internet

BY TED O'CONNOR

30 Mar, 2012


HORSHAM and Haven will have access to high-speed internet within the next three years.

Prime Minister Julia Gillard announced yesterday that 700,000 premises across Victoria would be hooked up to the National Broadband Network within three years.

Works will start in Horsham and Haven in December 2013, with high-speed internet to be up and running in about a year.

Bendigo, Shepparton and Albury will also gain access to the NBN within the next three years, but Warrnambool, Hamilton, Mildura and Swan Hill are among centres to miss out.

Wimmera Development Association chief executive Jo Bourke said the fibre roll-out was great news for schools, health services and businesses in Horsham.

"Video conferencing opportunities for virtual classes at schools and medical diagnosis will provide huge benefits," she said. "People need to start becoming internet savvy so they can use this technology to its full potential.

"Elderly people particularly need to know their way around the internet, because this network has the potential to save them from having to go to Ballarat and Melbourne for medical appointments."

But the fibre network roll-out plan received mixed reactions across the Wimmera, because Nhill, Dimboola, Warracknabeal, St Arnaud, Donald, Stawell and Ararat and surrounding areas missed out.

They will have to wait until after 2015 for the technology to be delivered.

 

[our obsession]

Australian Bureau of Statistics Regional Population Growth, Australia, 2010-11 30/03/12:

Victoria's estimated resident population at June 2011 was 5.62 million people, an increase of 84,200 people since June 2010.

This was the largest population growth of all Australian states and territories for this period.

Victoria's growth rate of 1.5% in 2010-11 was slightly higher than the national figure of 1.4%.

Excerpts only:

POPULATION CHANGE IN REGIONAL VICTORIA

Population growth

In the year to June 2011, the population of regional Victoria increased by 17,200 people (1.2%) to reach 1.48 million people.

All regional SDs experienced population growth in 2010-11, with the exception of Wimmera SD which decreased by 0.3%. As was the case in the previous year, the fastest growth occurred in the SDs of Gippsland (1.9%), Central Highlands (1.8%) and Barwon (1.6%). Barwon, Gippsland and Central Highlands also had the largest population growth increasing by 4,500, 3,400 and 2,900 people respectively.

Within regional Victoria, the LGA of Greater Geelong (C), located south-west of Melbourne SD, had the largest increase in population (3,300 people) in the year to June 2011. This was followed by Ballarat (C) (1,900 people), in Victoria's west and Greater Bendigo (C) (1,500) in central Victoria.

The LGA of Bass Coast (S) had the fastest growth in regional Victoria, increasing by 3.7%. The SLA of Bass Coast (S) Bal contributed 87% of the growth within the shire. This SLA is home to the Wonthaggi desalination plant construction site, which has attracted many new residents into the area. The next fastest-growing LGA in regional Victoria was Moorabool (S) (3.0%), located to the west of Melbourne. The majority of this growth occurred in the SLA of Moorabool (S) - Bacchus Marsh (S) (90%). The third fastest-growing LGA was Mitchell (S) (2.9%), north of Melbourne, with the SLA of Mitchell (S) - South contributing 97% of the growth within the shire.

 

[Belu]

Great to see some solid regional growth rates, it is interesting to see the differences in the construction industries in regional vs metro at the moment. A lot of builders I know in Melbourne cannot find work, and the builders I know in Bendigo are backed-up and turning away work.

 

[stkelly]

Hi all... I've been lurking whil getting ready to purchase our 1st investment property.

With our budget, we are also looking at regional Victoria. Theres SO MUCH to consider, I'm getting a little confused, however I have found this property in Morwell :
http://www.realestate.com.au/property-house-vic-morwell-110152913

So - from what I see:
* Its WELL within our budget
* With the rent from the current tenant, its basically positively geared.
*Its on a big block, so potential for subdivision in the future (according to the sales blurb on realestate.com).

I've heard good and bad things about the potential of Morwell, but for this first-timer, it looks like a great buy ! But what do the more experienced of you out there think ?

 

[wobbycarly]

Personally, having lived in the area, I think Morwell and Moe are the two towns in the Latrobe Valley to avoid. IMO, Traralgon and Warragul will have better growth prospects.

Consider the impact the carbon tax and the closure of Hazelwood will have on the region...

 

[Belu]

stkelly welcome to the forum, what are you after in an investment?

 

[jackbak]

stkelly welcome to the forum, what are you after in an investment?

Hey Belu, I just noticed your from Bendigo! Im actually looking at Bendigo at the moment, I've got something in mind at the moment which would pay around 5.6% yield (with very little depreciation). Do you think that is a fair yield for the area or a little low?
Thanks!

 

[strongy1986]

Have to agree with wobby here.

Never lived there but know a few people who have and all say the same thing. Avoid Morwell and Moe!

If your just looking for something that is close to positively geared then look in towns with a better rep.

I guess you looked at these and thought they are cheap and they are closeish to Melbourne?? (I have had the same thoughts)

I came to this conclusion. Yes they might be cheap considering their proximity to Melbourne but realistically in our lifetime these places will never get capital growth due to their proximity to Melbourne (just too far)

Growth in regional towns is going to come from some new industry in the areas - do your research

Yeah you can get some positively geared property in these areas - a house for 120,000. Problem is these are all ex commissions and the rent you command will be fairly low. Taking this into account you have a fair chance that your tennants will cause you a bit of grief! If not then youll do fine! But for me it was too much of a risk.

I was then looking at Rosedale and Sale. Sale is much much bigger than Rosedale but they are fairly close together. (easy to live in Rosedale and work in Sale). You can get some bargains in Sale (older houses) just wait for the right one.
.

Anyway if your budget is around the 100 - 200 mark why not look in SA or Tas? You can find places there with good proximity to the capitals which will give you a better chance of capital growth.

 

[Belu]

Hey Belu, I just noticed your from Bendigo! Im actually looking at Bendigo at the moment, I've got something in mind at the moment which would pay around 5.6% yield (with very little depreciation). Do you think that is a fair yield for the area or a little low?
Thanks!

Hi Jack,

Depends what you are after, it sounds alright but there are better if you are after a yield play.

As an example we have a development that is $265k buy in for house and land unit, rental estimate of $270-290/week, or a lot more if you furnish. Similar yield, low stamps as you are buying it as house and land (titles work is done, build to commence shortly, 6 of 10 sold), great depreciation upsides and a local, good builder who can alter things in the unit to your liking.

What areas are you looking in?

Cheers

Ben

 

[Property Hoarde]

Hi Ben,

What are your thoughts on Spring Gully?

Thanks

Peter

 

[Belu]

Spring Gully has a great out-look, I feel like everywhere you look is a tree backdrop - very pretty.

It already has a bit of premium to it, which I think will continue. When you look at the overlays you can see a large amount of environmental significance, vegetation protection and wildfire management overlays. This will mean the area should see a slower level of development.

Therefore I think, as an investment, I would target something new or close to it, in a good spot, and wait. Personally I haven't developed in the area, mainly because of these overlays and their limiting potential, but they also mean that the existing trees and outlook will be a long time staying - which is nice

Mind if I ask what type of investment you are after Peter?

Cheers

Ben

 

[Property Hoarde]

thanks Ben,

At this stage I am just wanting a simple buy and hold.

Prefer not a unit or if a unit only 3 where I can purchase 2 of the 3.

I will PM you the property I was thinking about.

 

[Belu]

Feel free to PM it.

Are you up in Bendigo soon? I can take you for a drive around if you like.

Regards,

Ben