VIC Bendigo v Ballarat v Melbourne

Hi

Just signed up and first time post. Looking to buy first IP, with $300k - $400k to spend and keen on areas with prospects of quick capital gains (aren't we all).

I'm torn between a house in Ballarat or Bendigo or apartment in inner Melbourne, looking at St Kilda, Northcote or Thornbury. Also interested in Croydon area, as believe the outer East represent strong growth possibility.

Any advice appreciated!

Thanks

 

@SRD16 - 2 steps back - why those areas?

 

Mate you have selected areas from all over the place.
Personally I wouldn't buy in an areas because it fits my price point. Ie Ballarat or Bendigo.
If max purchase price is the issue and you are looking for stronger CG I suggest saving a larger deposit and combine with LMI. It seems like a longer stretch until you get into the market but making a good decision like they now will make a big difference in your portfolio down the track

 

Ballarat and Bendigo purely because I've read good things about regional growth.

The other areas are all areas I am familiar with, and feel comfortable with for first IP purchase, however crazy that sounds.

 

forget about inner city apartments in Melb there is an oversupply and therefore high risk

I will only comment on Croydon, as I am currently developing in this area, there has been significant growth in this area perhaps 40%.

There are still some great gems in the area that come along even today, however I would focus on older houses where you can add value on larger blocks, development block even better.

The demand is coming from developers, FHB and downsizers, perfect storm
As always do your homework and if it's a buy and hold You are on a winner, if it's a flip you are probably too late

MTR

 

I invest in apartments in Melbourne and houses in Bendigo, none in Ballarat.

I do not think it is wise to buy apartments esp in Inner Melbourne now. Prices is on the slide for reasons that many people have discussed in other threads. I don't think anyone wants to own something knowing it might be worth lesser down the road.

As for Bendigo, except for houses near the hospital and the CBD, prices of houses in other surburbs have largely remained stagnant for the past 3 to 4 years I feel, due in large part to the plentiful supply of new houses here. Vacancy rate is therefore high resulting in lower rental yield. The completion of the hospital next year might improve the situation slightly but do not expect very much changes.

In saying the above, Bendigo on the whole should grow steadily in the long term. Like it or not, it will be one of the few regional towns in Victoria that can keep attracting people from elsewhere to stay here permanently. And this will be the case for decades to come. The big break will come when price disparity between Melbourne and Bendigo get so wide plus Melbourne City get so crowded that droves of melbourians might just decide to relocate here once and for all. Bendigo after all, is just 1.5 hours by car to Melbourne. The question is "when will this occur?"

If you decide to buy here, try buying an established house (never mind if its weatherboard) as near to the hospital and the CBD as possible as supply of houses here are limited. It is possible to get something like that with $250k. If you're willing to spend close to $400k, you will get a nice house in a very good location. But still I don't think you will get fantastic capital gains in the next 2 to 3 years.

I can't really comment for Ballarat but I think it's scenario is pretty similar to Bendigo.

All in all, it depends on what you want. If you're contend with some capital gains over time and getting reasonable to good rental yields (depending on how much you paid for the house), Bendigo and Ballarat should be the choice. They are anytime better than buying
apartments in Melbourne CBD I feel. But if you're after good capital gains - buy and flip strategy, I do not think the above towns suit you.

 

You are fishing in the wrong ponds for quick CG's. In Victoria I would look at Melbourne's western suburbs, but if you can think on a national scale your best bet in my opinion is the Gold Coast to Brisbane vicinity. Is very much due for a boom and the Comm Gains will certainly help it along. I expect the real movement to begin at the end of this year or early next year.

 

i think a reconsidering of the regional market is underway. surprisingly ballarat is surviving the competition.

 

I agree- look towards Broadmeadows, Jacana, Dallas.
Dallas will do better than regionals for CG but will do worse than the first two suburbs I mentioned. Just my opinion anyway.

 

Hi folks

Seems that Ballarat has been doing well the last 1 to 2 years. Understand that many who bought 2 to 3 years ago has seen capital growth in their properties. This is the right thing to happen as growth here has been suppressed for years.

Geelong too. And the fact that the Chinese are starting to buy here looks likely to be a strong impetus for further growth. And this is happening despite poor economic sentiments and "not so good" employment prospects here in Geelong. I remembered 2 years ago when the car factory is closing down, people were lamenting how doom and gloom this city will become. What's happening now looks quite the opposite... Geelong might be on track to be the "Newcastle" of Victoria?

Bendigo is the disappointing one. Figures published and feedbacks from real estate agents here suggest things have not improved. In fact, prices of houses seems to have slided in some surburbs over the last few years. But there are some really good bargains to be had if one has the money and willing to take certain risks. Do not expect a speedy recovery though. The stocks are simply too much to be absorbed over the next couple of years. Hopefully the start of the hospital can help speed up this process and enable Bendigo market to turn around quicker.

Ballarat in my opinion is still the best bet among these 3 regional towns for quick and safe capital appreciation. Geelong has gone up a fair bit though there still possess good opportunities in the "working class" areas. Bendigo is a good for those who buy in the right areas and who can hold on for long.

 

Personally I play the long game. So for me the choice of buying in Australia's second largest city versus a regional is a no brainer. Melbourne all the way.

 

I agree mostly with Xiao for the most part in his assessment of Bendigo. The good thing about Bendigo is that from most suburbs you can be in the centre of town in 10 minutes or less. I do believe that the new hospital will give a little bounce to our growth here in Bendigo.

 

Ballarat had a population of 93,761 in 2016 and Bendigo's was 92,384. Yet Bendigo is set to surpass Ballarat's population size between 2030-2035. Bendigo's population will grow to 130,000 approx by 2035 and Ballarat's will be 125,000 approx by 2035 at current growth rates. Bendigo seems like a better option in the next 12-17 years.

 

I don’t know what infrastructure/government projects are out there in Bendigo to speculate future growth. Shout out to Bendigo area experts in the forum! If you could share us your on-the-ground knowledge, similar to what I did with Ballarat at VIC - Ballarat Tip: The Capital of Western Victoria, it’d really be beneficial to those who are interested in investing Bendigo.

 

Go Ballarat.