victorian regional hotspots and land on-sell

[penti99]

hi guys

I am a newbie here .. but got some great advise from y man and others ...

glad for that

with my situation ( as the budget is tight ) .. I have shortlisted the things I can do ( without loosing my ppor)

this is what I am looking for

positive gearing IP ( even neutral gearing would do great - one's who can pay off mortgage and for rates and repairs would do good )...

budget of 200 k

did some research - found these areas promising ...

traralgon , horsham , mildura , geelong , ballarat , bendigo ...

among these mildura and horsham seems to be within my reach ....

geelong is off my limits ...


my limits

if the IP is vacant for 2 months - i can manage

if its vacant for 4 months - i will start worrying ...

so I am guessing that I need to look for blue chip areas ( close to city centres ) to get the kind of rent I am expecting ...

looked up some properties in mildura - noted a wide difference .. I mean there are 3 bedders for 196 and some one's for 250 as well ... ( couldnt see why this is ... may be good and bad areas )

and noted there are few which have been rented ....

as you know banks see it in a different way when they are already rented ( am I right.... )

i did some figures and have seen that once the property value crosses over 160 -- with the average rent of 200 -- it needs some negative gearing

i can negative gear if necessary ( < 200/month ) ...

so i need advise on

has any one invested on positive gear or neutral gear properties in the above mentioned areas

can you suggest any other areas

what are your experiences and suggestions

is there an online calculator that I can use to do my sums with IP's

at the end of day

planning to buy 2 IP's

not expecting a huge capital appreciation ... slow and stead would be fine

and after 5 years able to pay off my ppor

2) hot spots for land in victoria

has any one bought land and did onsell on them before settlement ( by paying 10% deposit )

if so what are your experiences on that

my idea is to onsell them if I can get capital appreciation on them

I am sure there would be expenses but not completely sure if I on-sell it before settlement

cant see much of this type of land in victoria

any light on this

once again thanks heaps ...

i am not going to give up ( though my budget and earning to small now ) untill I exhaust all options

waiting for ur reply

sri

 

[units4me]

While you can buy sub $200K 3 bedders in some of your listed locations, just make sure that they are not in bad/rough parts of town, ie housing commission areas etc.
This will always limit the amount of rent/demand for your IP. Visit in person the towns you're interested in, talk to PMs, and look around. Spend a few days if need be. You will soon get a clear picture of where is good/bad to invest.
Good luck.

 

[penti99]

how would I know

thanks

bendigo sounds promising ... with a tight rental market ..

Is there any site or place I can get a list of towns with past rental markets ( to see how their rental markets have been for years )

How would i know good and bad areas ( without visiting ) ... ofcourse i will visit but at this starting stage ...

how would I know

 

[cmason]

Is there any site or place I can get a list of towns with past rental markets ( to see how their rental markets have been for years )

This site shows rental vacancies for past 5 years
http://www.sqmresearch.com.au/graph_vacancy.php?t=1

How would i know good and bad areas ( without visiting ) ... ofcourse i will visit but at this starting stage ...

how would I know

Speak to the REA's of the area they usually give you an idea of good and bad area's

Wodonga is another area worth considering

 

[penti99]

how would I know

thanks

bendigo sounds promising ... with a tight rental market ..

Is there any site or place I can get a list of towns with past rental markets ( to see how their rental markets have been for years )

How would i know good and bad areas ( without visiting ) ... ofcourse i will visit but at this starting stage ...

how would I know

 

[penti99]

thanks

thanks for your advise and link

its helpful ...

i will try for a 3 bedder

house/unit ( as long its in blue chip area with my expected rental return to neutral gear I dont mind a unit as well ...

i reckon it would be bit hard within my budget but will try

if I cant buy

can I buy land and on-sell it later ( in that make some money and buy a house/unit )

I think i can shortlist

wodonga
bendigo
horsham

any other place I am missing ...

 

[penti99]

any one on this

any replies to latest post

thanks
sri

 

[Belu]

call Jesse Gardner from DCK in Bendigo.

DCK are the biggest firm in Bendigo and he is a good bloke. Tell him Ben from Emmett St says hi - he will look after you.

No commissions etc, just a great bloke i bought something off this year.

Jesse Gardnet
0428 310 893

Cheers

Ben

 

[units4me]

If you are looking to buy land to onsell later, look to the areas with land shortages.

 

[.toe]

Mount Clear / Mount Helen, highest yields in Ballarat. Ballarat is very tight rental market right now, so you have your choice of tenants & rents are rising. These two areas are all uni students, they get paid by the government . Many students are from regional towns so demand for rentals is solid. The blocks are large and often easily subdividable which makes for a good future value add play.

In general Ballarat will benefit from govt push to regionals, a new call centre has openned, to employ 600, a govt department is to relocate employing 150, etc. Ballarat is growing, there are developments, and land to be released, anything you buy inside those areas should do well over time.

 

[cmason]

call Jesse Gardner from DCK in Bendigo.

DCK are the biggest firm in Bendigo and he is a good bloke. Tell him Ben from Emmett St says hi - he will look after you.

No commissions etc, just a great bloke i bought something off this year.

Jesse Gardnet
0428 310 893

Cheers

Ben

Guessing you mean Jesse Gardner as has same number and I would have to disagree with you there Ben.

We had Jesse show us through 3 properties a couple of months back, he was very under prepared hadn't done any homework on the properties he was showing us, wasn't even sure if the property was owner occupied or tenanted and didn't have a flyer for the properties.

I feel if you genuinely are interested in selling the property know a few details of the property and have a flyer

 

[our obsession]

victorian regional hotspots and land on-sell

I am a regional Vic investor, it's a place I'm familiar with, lived in many of the places, had an opportunity to observe towns/regional cities over some years.

I don't understand the term, "hotspots" I need to qualify I am not a hotspot investor, more a "long slow burn" after buying well and getting as good as deal as possible, (after research, due diligence.)

I have found the regional city catchment (Bernard Salt calls 'Sponge Cities') cities have, generally speaking and not with out facing their own, each unique challenges grown and prospered. Offering me good investing for 'my needs and wants and circumstances'.

I'm not that sure just because I do A B or C others will achieve the same outcomes, but I invest in Bendigo and Horsham and some smaller areas, I also know other (now financially independent, successful) investors with IP's in places such as; Mildura, Ballarat, Bendigo, Echuca, Swan Hill, Horsham, Hamilton, Ararat, Stawell, Shepparton, Albury/Wodonga area, and probably another couple of dozen places....

I have a mixture of newly constructed IP's with older IP's...sometimes I've bought (and added value) to places noone else seemed to want.

I also have some land blocks I think I got for good value, but keep in mind good value is where it can actually return dividends to you, bring you in an income. (Just my opinion).

I've never struggled to rent out anything I have, on the contrary I have people ring asking me do I have places to rent, and the ones with PM's rent out within hours to days. In my opinion I get good rent for well presented IP's.

If you would like some data on long term trends through the state of victoria I would be happy to email you, just PM me.