Where to buy in Vic?

I am a first time investor with 80K in savings and over 100K/year in income.
We are looking for a home around 300K with good rental income and capital growth.

Areas we are looking at are Ballarat, Warrnambool, Dennington, Portland.
Any input would be appreciated. Thanks.

Should I consider other states?
 
If you are going to consider places this far away you would be mad not to consider interstate.

I heard warrnambool yields were good but when I had a look for myself I wasn't that impressed.
Portland...?

I have a Place in Whyalla because I think that in the future it will be a town that provides services to SAs up and coming mining industry. Yield is 7% on a house in good area. Should get much higher yield if you choose a cheaper property in a lesser area.

By the way the rental yields in Victoria are low and I think for an investment property you would want a minimum yield of 5.5 - 6 %. Otherwise it's to much money out of your own pocket.
 
PPOR/IP.

Assuming IP.

Determine what you strategy is. (Otherwise you are getting the cart before the horse)./

Determine what modes/methods you are comfortable with - and then start to narrow it down to the micro (ie. locations).
 
I am a first time investor with 80K in savings and over 100K/year in income.
We are looking for a home around 300K with good rental income and capital growth.

Areas we are looking at are Ballarat, Warrnambool, Dennington, Portland.
Any input would be appreciated. Thanks.

Should I consider other states?

Could you talk us through your decision of buying a ''home'' at $300k?

If you earn 100k and have 80k savings your serviceability is primed for a higher strike point.

Also what do you mean by a home? House with land?

If that's the case why are you looking for this?

If this is your first investment property focus on Capital growth rather than yield.

Why have you chosen those localities?

Have you done your research as to what the 10 year average growth is in each of those areas?
 
I am a first time investor with 80K in savings and over 100K/year in income.
We are looking for a home around 300K with good rental income and capital growth.

Areas we are looking at are Ballarat, Warrnambool, Dennington, Portland.
Any input would be appreciated. Thanks.

Should I consider other states?

Welcome to the forum Oz.

There are some threads containing information regarding different areas within Victoria, (and also other States) buried away on the forum, some can take a bit of digging out, here is one that is accumulating comments/opinions/some data/experiences over time, hopefully to give bit more than a glazed over opinion/snapshot.

Regional Victoria

Within that there should be links to Ballarat, Bendigo, possibly some other regional cities of Victoria as well.
 
Areas we are looking at are Ballarat, Warrnambool, Dennington, Portland.
Any input would be appreciated. Thanks

For these areas, an update from Victorian Valuer General stats 2011, (I think we may have previously posted 2005, 2008, 2010.)

Ballarat has averaged around the 9% growth P/A for the decade, 2001 to 2011.

Dennington: 12%

Portland: 9.9%

Warnnambool: 7.9%

Those averaged out growth P/A figures are not something I ever based my investing on solely, (I didn't even know about these stats then). Rather, I did a lot of due diligence research on places, quite a bit of it on the ground in the cities, even though I had grown up, spent time living in some of them, when it came to investing I wanted to accrue different kind of information, eg the different surburbs, the likelihood of my IP's rental occupancy, the cost of places, attending auctions, what are places selling for, what are they fetching rent wise, cost of the land blocks, cost of building, (if I wanted to build), what possible returns I might be able to get, (ie rent), what was happening economy wise, industry wise within the places, how was the population holding up? Etc...

Pickle Pickle's Ballarat Thread commenced November 2009. It gets updated at times, nice to have a constructed view of the places over time.

Hope that helps some..
 
Hi Oz,

Have you considered Bendigo? There are some great options there. One that comes to mind is a 4 bedder on 1,000 sqm in Golden Square. Our Senior Property Manager put the house at a rental valuation of $330/week and the place is on the market for $270-290k from memory. Good yield and it has 2 unit sites out the back (STCA of course).

Still stacks pretty well i think.

Cheers

Ben
 
Hi Oz,

Have you considered Bendigo? There are some great options there. One that comes to mind is a 4 bedder on 1,000 sqm in Golden Square. Our Senior Property Manager put the house at a rental valuation of $330/week and the place is on the market for $270-290k from memory. Good yield and it has 2 unit sites out the back (STCA of course).

Still stacks pretty well i think.

Cheers

Ben

Just bear in mind that the average rate of growth over the last 10 years for this area was 7.6%.
 
Interestingly, and for what it is worth, the Victorian Valuer General averaged out growth for Bendigo, decade 2000-2010 was 11.8%

Bendigo, decade 2001-2011: 9.1%

Eaglehawk, decade up to 2000-2010- 10.1% / 2001-2011 9.4%

East Bendigo: 2000-2010: 8.4%/ 2001-2011: 7.0%

Epsom: 2010- 9.9%/ 2011- 8.7%

Golden Square: 2010-10.2% / 2011- 8.6%

Kangaroo Flat: 2010-8.3% / 2011- 8.4%

The rental market itself continues to be very tight for any well presented property in Bendigo. And has been the 9 years I have had IP's there. Golden Square being closer to the cbd of Bendigo than Kangaroo Flat.
 
The more historical change in growth (Vic Valuer General) for decade 1994-2004:

Bendigo-just over 9%

Eaglehawk-7.2%

Epsom- 8.2%

Golden Square-8.4%

Kangaroo Flat-8%
 
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