Where to buy in regional victoria

[yadeh]

Hi guys

I am planing to buy a +CF property in the regional victoria. Finding a +CF is not that difficult in small towns as I have been looking. However, what I want to find out is: where are the good places in Victoria to buy?
I was told that Ballarat and Bendigo areas have still got a bright future in CG. What do you think? I appreciate any hints and comments on this.
Yadeh

 

[westan]

Hi yadeh

If you enter the Country market in Victoria then i think you will really struggle to find good deals that are returning at least 10%.

I agree that areas like Ballarat and Bendigo will be good long term buys. Other area that you might like to look at (but have had very strong price growth over the past 5 years include these areas.

Warnambool- popular seaside city with strong population growth expected to continue

Portland- Has the deapest port in Victoria and a planned 1 billion dollar Pulm mill planned.

Mildura - could become the "gold Coast" of victoria. The new marina/s will add to the cities appeal.

Hope that a start.

regards westan

 

[Bill.L]

Hi all,

* From a biased point of view

Perhaps Colac??

As per discussion in this thread

http://www.somersoft.com/forums/showthread.php?t=21885&highlight=colac

There is also now talk of duplication of the Princes Highway from Geelong to Colac, the state govt have said they will pay half if the feds pay the rest. This will be a positive for investment in Colac as the combination of Geelong ring road with the new road, makes Colac an ideal seachange/treechange destination for city escapees.

bye

 

[mitch]

Just a bit of feedback in relation to Bendigo.

l bought a property there in 1993 for $98 k.

had the property valued in 2000 by bank , $115 k renting at $155 pw

had the property revalued in 2003 by same bank , 215 k renting at $185 pw.

worth the same now in 2005 but the rent is 205 pw.

Bendigo population increased by just over 1600 people last year and their population is approaching 100,000 people.

The rental vacancy rate is usally around 1.5% sometimes lower and not to often higher.

l have never had a problem renting the property nor in getting quality tennants

There are no cash flow positive or neutral properties in the area but if you are able to value add it may help your cashflow.

Prices have been very stable in the last 2 years with now growth to speak of other than in the 120 to 160 k area but that is modest and seems to be fueled by affordability issues more than any real growth.

If my crystal ball was working l would say there could be next to no growth in the next 4 or 5 years as per the ninties , so if you not investing for cashflow and with little prospect of real growth , remembering inflation , then l couldnt see any returns worth having , value adding aside.

Regards Mitch

 

[yadeh]

Dear Westan, Bill and Mitch

Thanks for all the feedback on Country Victoria. This is very helpful.
Yadeh

 

[Toonunit]

I think Ballarat is similar to Bendigo at the moment. Don't think prices will move much in any direction for a while. Very low vacancy rates and easy to pick up properties with at least 5% yield, nowhere near 10% though. But rents will probably rise too with such low vacancy rates. Probably a good place to buy for a long term investment & you can get into the market for a lot less moola than Melbourne. Population also growing like Bendigo due to active encouragement of migrants & tree-changers by the council & state gov. I've lived here for 34yrs so if you want any details of specific areas, just PM me.

 

[Rixter]

Echuca up on the Murray River is very nice with a growing population as Melbournians migrate.

 

[tubs]

Got to keep an eye on the water situation in Bendigo. its apparently quite bad, which may have an effect on industry, or new developments. This could of course send prices up or down.

I dont think the talk on the highway duplication to Colac is about doing it, its just parties throwing the blame back and forwards about it not getting done. They can't (and wont) even build a few miserable overtaking lanes, so I doubt 100k of duplication is going to happen any time soon.

 

[oc1]

The Gippsland region is the most undervalued in Victoria.

Start from Warragul through to Traralgon, Sale Bairnsdale.

Land is becoming scarce with suitable residential blocks running out. land prices have increased 15% or so each year since 2000. Plenty of money pumped into the area by the Govt and business.

Cheers

Oscar

 

[Ronny]

Try Wangaratta & Benalla area. Prices gone off like most places but some value to be found. Local agent websites. Along Murray river expensive now with poor returns.

Regards
Ronny