Thoughts on Regional Vic

[jackbak]

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

Thanks Ben! Dont have a particular area of Bendigo that I'm focusing on but the property Im looking at at the moment is in Golden Square. From what I can tell North Ballarat is the most sort after area, is that right?
I have been a little bit weary of the new builds in Bendigo mainly because I seem to get around 10 of them a day popping up in my Home Alert and it seems their is a flood of them...

 

[Belu]

Jack,

North Bendigo (not Ballarat ) is quite popular at the moment due to the Hospital which is going to be great for the area. I have been buying in Golden Square for the last two years and really like its location and make-up.

Those alerts are the commercial builders putting generic properties up. And remember that the suburbs in Bendigo can be quite large, so the difference between the new estate in Golden Square, and the new build units we have on the books is quite a distance.

So yes - North Bendigo is very popular but I have a soft spot for Golden Square as that is where my first Bendigo purchase was

Ben

 

[our obsession]

Regional Victorian renters move more often than their Melbourne counterparts

Excerpt only:

Regional Victorian renters move more often than their Melbourne counterparts


By Enzo Raimondo
Friday, 08 June 2012



According to data produced by the Victorian government, renters in regional areas of the state move more frequently than those in the metropolitan area.

In Melbourne the average tenancy duration in the December quarter last year was 25.9 months – i.e. just over two years. In regional Victoria the comparative number was a shorter 22.7 months – just under two years.

These numbers are skewed by some very-long-term tenancies, as the median – the middle value – is much lower.

In Melbourne the median tenancy duration was a short 17 months. In regional Victoria it was 15 months.

The data also shows that, as would be expected, the smaller the dwelling, the shorter the tenancy. In both the metropolitan and regional areas one bedroom homes have the shortest median tenancy of just 14 months. This is a very popular form of rental home. Census data from 2006 shows that there are proportionally fewer small flats or units being occupied by their owners – the majority are rented.......read rest of Enzo's article.

And interesting too is the larger places, (4 b/r's +) also have shorter tenancy.

 

[mlmc]

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 Jackbak,

I have recently just purchased in Golden square (2km form town) for $275k renting for $330p/w. Its only on 400sqm, but property is only 4 yrs old with very little maintenance. Call and ask the property managers and ask them where and what kind of properties they like on the books.good luck.

Rob...

 

[our obsession]

Hi Jackbak,

I have recently just purchased in Golden square (2km form town) for $275k renting for $330p/w. Its only on 400sqm, but property is only 4 yrs old with very little maintenance. Call and ask the property managers and ask them where and what kind of properties they like on the books.good luck.

Rob...

One of my IP's in Golden Square became vacant, new tenants before even advertised, word of word of word of mouth...and more rent increases. Cannot get over the tight Bendigo rental market. Is a relatively new place also.

 

[Belu]

Golden Square is currently less than 1% vacancy rate - extremely tight.

Unsurprisingly, this tight rental market and quick re-letting times, is during quiet season, not busy season!

Cheers

Ben

 

[nicson]

Hi All,

What are your thoughts on Period property verses New, newish prop for renters in regional centres?

Do modernised periods get snapped up as quickly as new?

Cheers, N.

 

[Belu]

Hi Nicson,

They both have their market. There is an increasingly large number of Gen X/Y who are moving back to regionals from melbourne who prefer modern properties.

Modernised period properties are great for sale if they have kept some of the period features.

From an investment point of view, unless you have a good land component, or premium location, I would be looking at newer properties as you get similar yield % but more depreciation.

Cheers

Ben

 

[our obsession]

My latest tenant is a re-locator from Melbourne, preferring the lifestyle of Bendigo and cheaper rent (relative to Melbourne), value for buck. The places I have in Bendigo are relative new constructions, but other investors from there are buying all sorts of places, some ready to rent, some needing minor refurbishment, some requiring reno-ing. They are required to follow the heritage regulations though, that is something I avoided deliberately. Out of my depth, I like to keep things relatively simple. Just personal preference.

 

[our obsession]

...I should add doing constructions maybe considered too complicated by some, so it is all relative.

The deal and numbers added up for me, that is why I went down the construction path, (Bendigo) I have no problem with buying and doing refurbishment or minor renos either. I have both in other regional cities.

 

[Property Hoarde]

the guys investing in Bendigo, are you considering the issue of Mines shifts and the fault lines?

If so how big of an issue is it?

 

[nicson]

Thanks Obsession,

Have done a few reno's in melb and found it quite satisfactory. Though I stay away from heritage for the obvious. Current one I am doing is one street away from the heritage overlay thankfully.

I guess the best deal is best to aim for as all things rent it seems.

N.

 

[jhobo]

the guys investing in Bendigo, are you considering the issue of Mines shifts and the fault lines?

If so how big of an issue is it?

Can I also ask, how much threat does bushfire pose to bendigo?

 

[Belu]

Bendigo is effectively surrounded by forest but there are very strong bushfire controls in place.

 

[Nash13]

The BMO regulations have brought in a complex system of red tape which any new development (new dwelling/s, subdivision etc) or re-development (over a certain floor area) must address in order to be granted planning permission. We have found that on the most part development is possible if the developer/land owner is willing to make sacrifices in the siting and design of the dwelling or building envelopes. If the property directly abuts the forest interface, well that's a different story...

 

[Michael.Knight]

I'd certainly consider Bendigo if investing in Victoria. With a rental yield of 6%, an affordable median house price, low unemployment, and strong growth rate... It's a winner!

 

[our obsession]

Linking in some updates on Victorian Regional areas:

Mildura?

MohanWei's new Bendigo thread..

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[our obsession]

mbella's Wonthaggi thread..


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[our obsession]

More Bendigo

Bendigo Weekly's footage of the new Bendigo multi storey car park development

The Edward Street Car Park is conveniently located within the Central Business District at the corner of Edward and Queen Streets Bendigo. The car park contains 420 spaces, with the majority available for short-term casual parking. Reserved parking is also available under shade structures on the roof top. The ground level is comprised of commercial space with State Trustees being the major tenant.

Reserved parking enquires are welcome and can be made to the Car Parking Officer on site or contact Parking and Animal Services Unit on 5434 6000.

The complex includes the only public toilets with baby changing facilities available on the south side of the CBD as well as lifts, stair access, disabled parking and complimentary secure bike parking. This car park offers all motorists, including those living in the city a convenient and safe place to park their vehicle without being subject to various parking restrictons. This is the only secure car park in Bendigo that offers 24/7 access for reserved customers.

Fifty-two video cameras have been installed throughout the building providing a high level of security. Parking staff will also physically monitor the car park on a regular basis. Everyone will receive up to 90 minutes of free parking, once a day. A fee will then be applied for any additional time parked after the original 90 minutes has expired. This will be monitored by a state of the art Licence Plate Recognition (LPR) system.

If a customer leaves before the 90 minutes are used and then returns later that day, regular parking charges apply. Payment for short term parking can be made by cash or credit card.



Bike Parking
Bike parking at Edwards Street is free of charge (please supply own lock),secure and undercover. Access to the bike parking is via the lane way located adjacent to the vehcile entrance in Queen Street.

From City of Greater Bendigo...'Parking @ Edwards Street Car Park'

 

[Belu]

Thanks Our Obsession,

Parking in Bendigo CBD is a known issue so this is going to be really great for the trade in the area. In addition the State Trustees being relocation to Bendigo is a great boon for the local economy and represents yet another key investment from the state government in the City.