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VIC Bendigo v Ballarat v Melbourne

Discussion in 'Where to Buy' started by SRD16, 5th Jun, 2016.

  1. SRD16

    SRD16 Member

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    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
     
  2. MsAli

    MsAli Well-Known Member Premium Member

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    @SRD16 - 2 steps back - why those areas?
     
  3. Greyghost

    Greyghost Well-Known Member

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    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
     
  4. SRD16

    SRD16 Member

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    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.
     
    MsAli likes this.
  5. MTR

    MTR Well-Known Member Premium Member

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    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
     
    Last edited: 5th Jun, 2016
  6. Xiao Hui

    Xiao Hui Well-Known Member

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    Location:
    Victoria
    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.
     
  7. Inov8ive

    Inov8ive Well-Known Member

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    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.