Thoughts on Regional Vic
- Thread starter mezma3
- Start date
Hi Peter,
The new land that is being released is in the outer parts of Bendigo - Huntly, Maiden Gully, Strathfieldsaye, etc.
Well located central properties (and older ones) have been growing quite well in Bendigo as the scarcity of inner-city land is growing.
Also, most of Bendigo is boarded by forest or mines, there are only a couple of spots for population to break through, which leads to an increased desire for inner city once again
Cheers
Ben
^^^That's true. Some regionals look like very easy to generate more land releases, land everywhere. But the reality with some is mining overlays, flood zones, various other zonings etc and other obstacles, well located land can be hard quite to come by.
Easier than the big cities of course.
Easier than the big cities of course.
Thanks for sharing that one.
I have a property in neighbouring Alfredton. It's a 4 bedroom on a small block. 1960's. The whoel area is going nuts. Rent per week is around 300 per week for mine at present. Alfredton itself had been flat for a couple of years, but is turning around now. I can only presume more jobs in that area will drive the new and existing estates around Alfredton.
I contract to www.depreciator.com.au who is active here as well, Depreciator and did a depreciation schedule for an investor in Alfredton.
Meet the owner on site.
Essentially a new suburb to Ballarat.
Rents are strong according to the owner. About $ for $ that is $300k gets $300 a week. Mostly new builds.
Regards Peter 14.7
Meet the owner on site.
Essentially a new suburb to Ballarat.
Rents are strong according to the owner. About $ for $ that is $300k gets $300 a week. Mostly new builds.
Regards Peter 14.7
I like the rivalry between Bendigo and Ballarat
Yeah, I do a few schedules in Bendigo.
Both are nice places. Ballarat closer to MEL but a lot colder.
Bendigo a bit further out.
Economy and pricing they seem the same. Bendigo is nicer city heart and very active Art Gallery and champions WNBA Team.
Peter
Only a 5% return though - CG don't know? Experienced investors is this a good return?
Homes in Alfredton are desirable because it is high school zoned.
The Wendouree train station is a short drive if one works in Melbourne so no need to go into Ballarat city centre and try to get a park.
A lot of businesses have closed in Ballarat over the past few years. Not sure what the actual unemployment rate is or how easy difficult it is to get work.
Lucas is a large estate opening near Alfredton - and there is the Chase also and the more expensive Insignia by the golf-course. So with the extra supply rents may not increase that much.
There are also many new affordable estates in Sebastopol and Delacombe for first home buyers.
The number of rentals advertised in the Courier each Saturday is increasing - no stats on this just more pages in the RE guide.
Spot on.
I dont think anything in VIC is great at the moment and personally don't recommend here but many investors like to buy local, for good and bad reasons.
I find in doing Deprecation Schedules essentially all over VIC Country this is pretty common. Often do 2 villa in one block to one owner etc...
FYI Peter 14.7
Thanks Pete
I am still in the infancy stages of property investing. I second guess myself when I see / read of people buying in some areas with only 5% yield because my research and quite a few on this forum say there is better out there but at the same time I ask myself - am I missing something - is it ok to purchase only a 5% yield?
Some advocate a cosmetic reno to increase yield. I understand the concept but when I look at some of the figures I don't get it. 240k purchase (excluding costs) 240pw rent. 15k reno,rent increases to 290pw based on
purchase price so yield increases from 5.2% to 5.6%. Also 290pw is top rent for that property type and position.
Should the numbers be better than this? Especially as one may only be able to purchase 2-3 properties. You would want these to be great performers not good. Am I getting it?
I am still in the infancy stages of property investing. I second guess myself when I see / read of people buying in some areas with only 5% yield because my research and quite a few on this forum say there is better out there but at the same time I ask myself - am I missing something - is it ok to purchase only a 5% yield?
Some advocate a cosmetic reno to increase yield. I understand the concept but when I look at some of the figures I don't get it. 240k purchase (excluding costs) 240pw rent. 15k reno,rent increases to 290pw based on
purchase price so yield increases from 5.2% to 5.6%. Also 290pw is top rent for that property type and position.
Should the numbers be better than this? Especially as one may only be able to purchase 2-3 properties. You would want these to be great performers not good. Am I getting it?
Bendigo - subdivision
Hi Ben,
Just wondering if you still think there is opportunity for purchasing an older style house in Bendigo on a block size with subdivision potential?
Not sure what the market's done there in the last 12 mths and haven't done a lot of research as yet but interested to know your thoughts
mezma3,
Welcome to the forums
I have been investing in Bendigo for the last couple of years. I have two properties in Golden Square and a share of one in Flora Hill. Bendigo, I feel, has a lot to offer for a number of strategies.
There are good sized blocks for sub-division potential now and in the future.
There are great older houses if you want to renovate and build equity that way.
There is a great market for rentals (I think vacancy is 0.6%?) and most rental managers have a list of people waiting to get into places.
And there is a good, solid building industry where you can get brand new places with solid yields and depreciation rates.
Personally I went towards larger blocks and bought a 4,900sqm block in Golden Square in Feb 2010 and a 3,600sqm one earlier this year. The first one is a house at the front and I put plans on it for 10 units, and the second has just gone into council to keep the house, add 2 x 300sqm building blocks and a 7 unit townhouse site as well.
It just depends on what you want, but I have a few contacts up there and am around a fair bit if you have any questions on properties or areas.
Good luck!
Ben
Hi Ben,
Just wondering if you still think there is opportunity for purchasing an older style house in Bendigo on a block size with subdivision potential?
Not sure what the market's done there in the last 12 mths and haven't done a lot of research as yet but interested to know your thoughts
I'm a big supporter of horsham atm just purchased 2 ip's there. Low vacantcy and high yields coupled with low intrest rates offers great opportunity to lock in property at no on going cost.
http://www.realestate.com.au/property-house-vic-horsham-113031331
another great example!!!
http://www.realestate.com.au/property-house-vic-horsham-113031331
another great example!!!
Hi Mery,
With the big picture always in mind, I am curious as to your outcome. The growth in these VIC areas in direct comparison to other areas throughout Australia and in your price point would be less. Have you considered interstate investment, making the assumption that you’re in VIC? There are a few areas that I would favour better with growth being supported by new infrastructure already underway. With new infrastructure comes labour and the need for rental accommodation as a result. Food for thought…..
Best,
Peter
With the big picture always in mind, I am curious as to your outcome. The growth in these VIC areas in direct comparison to other areas throughout Australia and in your price point would be less. Have you considered interstate investment, making the assumption that you’re in VIC? There are a few areas that I would favour better with growth being supported by new infrastructure already underway. With new infrastructure comes labour and the need for rental accommodation as a result. Food for thought…..
Best,
Peter
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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%?
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%?
90 and 95% is possible in small regional towns, but not with every lender.
Id suggest that you need to match your investment asset to your timeframe. that is, if you need easily and quickly liquid assets, you might be better off diversifying into another asset class rather than property.
