Thoughts on Regional Vic

Hi all, I'm new to this forum, please be gentle! :)

Lots of interesting opinions here in this forum but it seems a lot of people are doing well and making suggestions to invest in places like Ballarat, Horsham, Bendigo and more.

I'm in Melbourne and I'm looking for a 3br house as an IP that I can purchase at a discount, add value through a quick renovation (nothing structural), and hold to create a positive cashflow (preferably). Ideally something with room to divide at the rear in the future to maximise future growth potential. Pretty much what everyone's looking for...right? right? :)

It appers rural is the way to go for the time being after comparing prices and yields in the metropolitan and rural areas.

I'ld love people's opinions on what areas of Ballarat, Bendigo, Mildura, and Horsham are "good" areas to look at are. Particularly in terms of growth of the area, infrastructure improvements and anticipated rental demand (for instance someone earlier mentioned Bendigo near the CBD/hospital was good because hospital workers needed accomodation). Also in terms of finding properties that suit my strategy - buy, renovate, hold, subdivide - so infill opportunities etc.

Thanks in advance and I can't wait to hear from y'all. Feel free to PM me!
Steve
 
Thanks Dave.. have looked at these and plenty others too. I have a trial to the REI website (Investar) and it's quite useful but I dont think I'll keep it long term.. Interestingly, while playing with the site I found some quite + geared (and cheap!) properties out in places like Mildura and Nhill. :)
For example http://www.domain.com.au/Property/For-Sale/House/VIC/Nhill/?adid=2010070469 and http://www.domain.com.au/Property/For-Sale/House/VIC/Mildura/?adid=2010078176 That said I woulnd't expect much cap growth on them in the future compared to other areas and those houses in particular don't really seem to have a lot I could do to them reno-wise to add significant value or increase the already pretty good cashflow.

It's also a big shame Mildura is a 6hr drive from where I live (Carrum Downs area) and Nhill is 5hr. Ballarat clocks in at 2hr and Bendigo at about 2 1/2 which makes the drive to do the anticipated reno work a little more bearable. :)

What are your thoughts about buying in areas like Ballarat, Bendigo, and Geelong? What would make you prefer one over another? They are all reasonably close to Melbourne, have rail links, and good prospects overall for the future.

And while there is a fair bunch of talk about those regional spots up in the NW portion of the state I haven't seen much news about eastward toward Gippsland area.. Moe area I know is a deadzone because of the carbon taxes and the power station shutting down but further east - Sale, Traralgon, Bairnsdale? Does anyone have opinions/stories to share about these places?

I'm an ex-kiwi, have been here for 8 years now but rural VIC is kind of new to me. Having a great time learning about it though! Thanks :)
 
Hey boxdog - another place to consider might be Maryborough. I never see much said about it around here, but we have 2 ip's there and are quite happy so far.
 
bbmick said:
Hey boxdog - another place to consider might be Maryborough. I never see much said about it around here, but we have 2 ip's there and are quite happy so far.
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becareful when researching maryborough, as there is a maryborough in QLD and a maryborough in VIC... so just make sure you're looking at the right data for the right area :) both are around same population size too! :)
 
For such a long thread, I was wondering when someone would realize that regional Victoria includes the East of the state as well.

BoxDog, you are approximately 1.5hrs to Traralgon, with it's very strong local economy. Good GC and yield over the long term. Land shortage there too.

If near positive cash flow is more your thing, then Moe (1.25hrs from you) is worth a look. Forget the stigma of Moe, anywhere you are looking for near CF+ returns will have similar local issues. Just buy in a decent part of town. And BTW, the brown coal power stations aren't closing down any time soon. The feds tried that, but can't afford to buy them out.
But there are lots of very very shaky manufacturing industries in the larger western regional centres that pose a bigger risk than the power industries IMO.
 
units4me said:
BoxDog, you are approximately 1.5hrs to Traralgon, with it's very strong local economy. Good GC and yield over the long term. Land shortage there too.
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Is GC Capital Growth backwards? (hopefully that's not negative CG :))

I was thinking about Traralgon actually. I can't recall exactly where I heard it, but heard a similar thing about the CG there - I take it from your comments I cant expect a CF+ property there from day 1 though.

Moe..that's an interesting one. My partner has an emotional stake against it because her now ex-friend lives there, so it'd be a bit of a sell to get her to agree to Moe.
 
boxdog said:
........My partner has an emotional stake against it because her now ex-friend lives there, so it'd be a bit of a sell to get her to agree to Moe.
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This is a common thing that happens. Try & keep emotions out of the decision.
Just talk the numbers - you don't need to ever visit the area & there doesn't need to be any reason why you need to advertise where all your investments are to others.
 
Giday

I grew up in regional VIC in Shepparton.
We have investments in outer Melbourne and live in Regional VIC so....

I would be doing serious crunching of the Capital Growth potential of anything not commutable to Melbourne.

And I would be very cautious on claims for CG in Regionals lest they be skewed by the new stock. Old homes in Bendigo may well stay as it on price and the price is moving because people are buying new project home stock above the median.

Like Shepparton where we sold the family home as we simply could not see any growth in prices long or short term above inflation. Yes, rent demand is high but that is because you have much higher low income group that can only rent. In Shepp, sadly SPC is shedding jobs, the dairy industry always in trouble, orchards doing it tough. I cannot find what it has going for it with the high $. We sold a 50 year old home renting easy for $200 a week for $160k with potential for a unit behind (with a lot of work). Bought by Arabic Muslim Family who are relocating to Shepp in big numbers. Whole family chips in and they pay off loan ASAP. The renters are usually low income white Aussies and there income is limited to casual work and gov assistance. All in all, not good CG to me.


But

The tree change movement to the bush and commute to work via Train has sen places like Kyneton, Seymour, Bendigo, Castlemaine go gangbuster re CG like 80% in 7 years. Like my slef they are cashed up white collar workers with kids happy to spend us on nice things and cares etc and not linked to the regions economy.

So, FYI I would be very caution on claims for CG in Regionals lest they be skewed by the new stock. Old homes in Bendigo may well sit as it and the price is moving because people are buying new project home stock above the median.

I could be wrong. I like Bendigo but I am always doubtful when they can simply cut more land up anytime to add stock.

Regards Peter
 
Point taken about commuting, no RRL out to the East, but is still a 160 km/h VFT line. Very quick from Traralgon to Dandenong, but unfortunately, clangs along behind suburban trains after that. Hopefully upgraded rail lines out to Dandenong will fix that in not too distant future.

Also, I would imagine that with the far higher average incomes in the Latrobe Valley (especially in Traralgon), than the west of the state (see ABS stats) that they would probably be less reliant on "commuting" for high paying work.

Still, an easy 1hr 45 mins drive to the city (1hr 20min from Moe), and even quicker to the more established Eastern suburbs employment opportunities.
 
units4me said:
*snip*
Still, an easy 1hr 45 mins drive to the city (1hr 20min from Moe), and even quicker to the more established Eastern suburbs employment opportunities.
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What?! :eek: I've just 'downgraded' from a 10 minute commute to a 20 minute commute, and I feel like my throat's cut! How can you you say "easy 1:45"?!?!? :confused:
 
I was looking for properties in Ballarat, but turned off by many agents. Many of them did not reply my inquiry through domain, realestate.com.au, text message, and even return my call! I am wondering whether it only happened to me?
 
tep846 said:
I was looking for properties in Ballarat, but turned off by many agents. Many of them did not reply my inquiry through domain, realestate.com.au, text message, and even return my call! I am wondering whether it only happened to me?
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Don't be turned off. That sort of ineptness is a bonus for you if you persist.

If they are that lax in providing you with information and returning communication, they are likely to be like that will all/most buyer enquiries. Pity the seller who has engaged them. Find the stale properties and persist......you never know who the "real" motivated seller might be and what they will accept.
 
tep846 said:
I was looking for properties in Ballarat, but turned off by many agents. Many of them did not reply my inquiry through domain, realestate.com.au, text message, and even return my call! I am wondering whether it only happened to me?
Click to expand...

To paraphrase an agent in a regional area I recently bought in, "we usually dont return calls until the second contact attempt as we are sick of dealing with tyrekicker investors from Sydney/Melb/other big city".

Call their office, leave a message, call back in the afternoon and they will generally be back to you and helpful once they have seen you are not a time waster. Regional areas can sometimes have a bit of a chip on their shoulder for out of town investors.
 
Player said:
Don't be turned off. That sort of ineptness is a bonus for you if you persist.

If they are that lax in providing you with information and returning communication, they are likely to be like that will all/most buyer enquiries. Pity the seller who has engaged them. Find the stale properties and persist......you never know who the "real" motivated seller might be and what they will accept.
Click to expand...

Wow..I didn't think of that. Thanks, you have reversed my negative thinking.

DaveMSydney said:
To paraphrase an agent in a regional area I recently bought in, "we usually dont return calls until the second contact attempt as we are sick of dealing with tyrekicker investors from Sydney/Melb/other big city".

Call their office, leave a message, call back in the afternoon and they will generally be back to you and helpful once they have seen you are not a time waster. Regional areas can sometimes have a bit of a chip on their shoulder for out of town investors.
Click to expand...

Glad to hear that I am not the only one.
 
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