First Time Investor-Need area and BA Recommendation

Hi, we are a first time investors looking to buy our first IP with a 500k-550k budget. We would be aiming for growth obviously since it is the first IP but with a decent rental yield so we are thinking the big regional areas like Newcastle, Geelong, and Ballarat but there might be good opportunities in Melbourne as they have just come out of lockdown. We want to engage a buyer’s agent for this purchase. I already have a few BAs in mind but would love to hear recommendations from those who have personally used them.

Also how do we select the BA? What are the common questions to ask them? We obviously would prefer local agents rather than those who operate nationally.

Considering our budget and goal which is growth and decent rental yield, are there any more areas we need to look at apart from the areas mentioned above?

Would really appreciate your help, thanks.

 

You don't need a BA, in my opinion. There's a ton of knowledge on this website, for free.

For that money and that yield requirement, Lara in the SW springs to mind immediately. It's sits nicely between Geelong and Werribee, has an international airport very close by with no air traffic going over it. It has a train station which I believe is a 55 min trip to the CBD.

Inside Geelong, Newcomb for that money. Some parts of Bell Park and BPH too maybe. Thomson fits into the budget but the rents aren't the greatest.

Further out, Armstrong Creek, Leopold and surrounds have much better rents but I'd expect inner Geelong and Lara to rise more.

Then, you can target the better parts of Hoppers Crossing - Cambridge, Mossfiel and Bellbridge estates (in that order) but you'd have to be decisive because properties in those estates get snapped up pretty quickly and may go over that budget.

Werribee too for that money, but rents are pretty average. CG maybe higher, just because it's closer to the CBD.

 

Thanks @Westie for all the recommendations. We are Sydney based that’s why we would prefer getting a BA. So you reckon Geelong still has more to grow? We are not too late to invest in Geelong?

Sorry what is BPH?

 

Just wanted to bump this thread

For the mortgage brokers here, can you please recommend Melbourne or Newcastle based Buyer’s agents that have produced good results for your clients? Thank you.

 

Jacqui Middleton (Middleton Buyers Advocates) is highly recommended. She's on here, but I cannot tag her with @JacM for some reason.

 

Haha she’s one of the BAs that I am actually considering. Thanks. Just wondering if there is any other more recommendations I can get

 

Lara has been growing in terms of house costs for the last 3-4 years, I have a feel it came to a plateau. My guess is that in terms of capital grow Lara wouldn’t go up substantially for some time. In terms of rental yield, it looks okay, though.

Armstrong Creek is having a new community with lots of 3-4 bed new houses built by investors, some of them empty. People who built in there 3-4 years ago do have tenants, people who are planning to build would have lots of competitors staying in the queue already.

 

Why would you like to invest in Vic?
Yes, we came from the longest lockdown in the world but Dan Andrews’ government loves putting their hands in pockets of investors.
I am not sure what’s happening in all other states but in Vic examples are:
Compulsory fire sensors checks annually
Landlords almost can’t reject applications with animals anymore, so tenants have lots of rights but landlords have none
A law is expected to come when compulsory checks of gas and electrical equipment would be introduced for rental properties. So, it’s a loss of several hundreds per annum, while such inspections must be done once per 2 years
Lots of interesting things ...
If I were you, I’d run from Vic

 

It’s one of the areas I am considering given my limited budget. I like the big regional areas as a decent yield is still achievable in this areas.

 

Thanks Rolf. I will get in contact with them.

 

Thanks for your insights.

 

Hi @Kremitz there are several REBAA members who work in Melb and Newcastle. Check them out here:
VIC Location: VIC | Real Estate Buyers Agents Association of Australia (REBAA) Inc.
NSW Best Buyer's Agents & Advocates Sydney – REBAA | Real Estate Buyers Agents Association of Australia (REBAA) Inc.
(NSW ones that cover Newcastle would be Propertunity, Newcastle Buyers Agents, Hunter Property Services, Fortune Property Finder)
Good luck

 

Well, there are plenty of regional areas that are not in Vic.
In NSW, you can find good suburbs in Albury & considering that Albury with Wodonga represent 100K population, that’s a decent size also. Some suburbs in Albury grow up relatively well.

 

Thanks heaps Jacque!

 

BPH = Bell Post Hill, a suburb of Geelong

 

Thanks @craigc

 

Hi @Kremitz , were you able to pen down on a BA. I am also looking for one to buy in NSW regional. Thanks!