What do investors think of Shepparton? VIC.

[Ruff investment]

G'day.
We have an IP in Shepparton. Lately we have been amazed at how quickly it is to rent out, renters in one day and the next day in, we were a bit more picky and had a 1.5 week vacancy between tenants. Also amazed by how much rent we are able to get for our property. Seems like they are pretty much cash positive from the outset at the moment. When we enquired how much we can get for the property it seemed "MIGHTY" low. But the RE agent explained that he would be looking at selling to investors and they require a return of at least 9-12%. Yeah.... we are holding on, not selling at a loss.

So what do people think of buying more in this area?
Maybe we should spread our assets out a bit further to minimize fluctuations in capital growth that seem to have issues in regional towns?

Our pretty average 3bed 1 bath is renting for $270 a week. There is quite a bit on the market at under $200K.
Thoughts?

 

[geoffw]

I grew up there, and although I visit from time to time, I don't know much about the market.

The last time I looked it appears that there hadn't been much capital growth. But I have seen, in an area which I didn't believe would ever get much growth, excellent growth based on excellent rental returns (12% back in the day), based on a strong investor driven interest.

There has been a lot of dual occs being built on the back of some of the big old blocks.

Many years ago, my grandfather saw the potential for the growing town, and bought a big piece of vacant land at the top of Maude St, near Balaclava Rd. He had a lot of trouble convincing the bank that there was potential. He made enough out of that to set himself up for his retirement.

 

[coastal]

Shhhhhhhhhh

nothing to see here


lol


50 k population 2 - 3 hours to melb and close to other regional centres...

Good deals to be found for the right property in the right area. A lot of crappy areas

There has been limited capital growth in recent years but it will eventually see some. I'd be looking for a deal where I would be able to manufacture equity, increase rents and refinance.

 

[coastal]

The issue is the a big industry is centre is around the farming and canning. Grapes, oranges and so on.

The canners are not buying from the local producers

The canners and other manufacturers are closing down and so on.