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How are the regionals doing?

Discussion in 'Where to Buy' started by TMNT, 22nd Jul, 2016.

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  1. TMNT

    TMNT Well-Known Member

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    As far back as 5 years ago. A lot of the "experts" put a lot of regionals on their hot spots and their reasoning.

    Some of the areas i recall are

    Ballarat
    Bendigo
    Warnaambool
    Bathurst
    Goulburn
    Wagga

    Ignoring mining dependant cities.

    Even to me the fundamentals were and still are good. Have any of these areas done well? Given that we ve had a property boom across many states. If theae areas havenr moved much. Id say they were a dud pick by an "expert "

    Anyone else also recall what other areas were picked?
     
  2. shimmy

    shimmy Well-Known Member

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    Orange, Albury/Wodonga, Bairnsdale
     
  3. TMNT

    TMNT Well-Known Member

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    Add to that list
    Morwell
    Davoren park
     
  4. Coastal

    Coastal Well-Known Member

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    Morwell has gone backwards.

    Albury compared to 2012 looks to be a lil more expensive
     
  5. BigBadBanana

    BigBadBanana Member

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    Bendigo hasn't moved very much at all in the last 3-4 years. I've seen one property in the Quarry Hill area (a very good suburb) which sold for about $285k in 2011, and was listed for sale in Feb/Mar for $315k. It's currently now down to $275k.

    Unless you're in the inner-north around the new hospital, Bendigo has been pretty flat.
     
  6. Xiao Hui

    Xiao Hui Well-Known Member

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    I agree with the comment on Bendigo.

    There's a brick house at King St listed around $350k 2 years ago and not sold despite on market for long time. Now it's re-listed and on sale around $310k. This is a good house in a good area, only 1km from city.

    Forget all the figures published, the Bendigo market certainly has not done well in the last 3 to 4 years. It is disappointing!

    If the money has been invested in Melbourne, one would have been surely made more money.
     
  7. Brisbane04

    Brisbane04 Member

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    Really !! forget all the figures published because you found one property that failed to sell after a while and was relisted at a reduced price, gee that's never happened before. That's it Bendigo is in free fall get out while you can. Has anybody else heard of a house not being able to sell and reducing its price? Bendigo has stabilised in pricing it had good capital growth for a number of years and has flattened out. Vacancy rates have dropped which has been good. We have a new hospital coming online in 5 months time and are desperately short of staff. All my rentals are currently leased, my 2 short term rentals are currently doing well at present. I'm in it for the long term and have seen plateaus in Bendigo in the past. From what I've read in the forums most of the successful property investors here have been in it for the long term and preach the same sort of ideology. It's the fly by nighters I think you need to be wary of that preach quick returns both in capital growth or return on investment.
     
  8. JamesP

    JamesP Well-Known Member

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    Phillip island has gone down with the exception of Rhyll/Newhaven. Search somersoft and you'll see an archive of posts beginning from 2002 all saying they've had negative growth and will recover one day.

    Actually some guy told Michael Yardney he bought a block for 16k last century and it grew to 90k in 4 years. So that's one person I know of who's received positive growth.

    Places like Koo Wee Rup/Lang Lang and Warneet are regional towns that have done well. With Warneet at around 400k median for a kit home. Half that in 2009. Hastings on the other hand has done poor, you can still get homes well under 300k on the murder side of Frankston-Flinders rd. Pioneers bay reflects how overpriced Koo Wee Rup/Lang Lang is. I think you can get a house on land by the water for around 130k.

    All in all people must assume the stretch between Cranbourne and Koo Wee Rup is prime Melbourne real estate. Because the stretch from Jam Jerrup to San Remo is more correctly priced.
     
    Last edited: 25th Jul, 2016
  9. BigBadBanana

    BigBadBanana Member

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    Back in 2010/11 things were great - strong capital gains and rents were going up and up - prospective tenants would literally bid for places such was the lack of supply of rentals. Fast forward to now, and things aren't going as well - the opposite problem exists. I'm in the property industry here and the general consensus is that apart from the hospital/lake area, it's absolutely flat. The Quarry Hill example is only just one example - I've seen dozens in my line of work...

    We own two places here, and the values haven't moved at all since about 2012/13. One of our houses in Flora Hill is rented at $340pw...and there's no way on earth I'd get that now.

    I wish I was as optimistic as you are - there's just far too much supply around. Council is going berserk with the infill to achieve this "compact city" BS - and they reckon inner Melb/inner Bris has an oversupply of units.... But just wait til that 1400 lot development in Maiden Gully gets going, then it will be freestanding houses too....
     
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  10. TMNT

    TMNT Well-Known Member

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    the reality is , assuming its not overpriced, if the market were warm or above, it wouldnt sit on the market for ages,

    in a hot market, it would sell like hotcakes,

    my expectation (feel free to hang crap on me) is that if a supposed expert tips an area to be hot, it will do better then the average, sooner than later,

    many of these tips were done up to 5 years ago, thats pretty much half a cycle!!!
     
  11. BigBadBanana

    BigBadBanana Member

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    Yep not surprising at all. The market around here certainly hasn't gone backwards...but it definitely hasn't gone far forwards...
     
  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Ditto Wagga.
     
  13. hash_investor

    hash_investor Well-Known Member

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    Very interested in Goulburn.

    I want to buy a large block (small size farm?) there and convert it to my holiday / weekender
     
  14. Brisbane04

    Brisbane04 Member

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    Hi BBB and TMNT
    I agree prices have stabilised, I mentioned that in my post, I'm hoping for future growth here and as mentioned before there are some things happening here. Ive got an optimistic outlook for Bendigo I'm not sure how I would cope with investing in property if I didn't. I would hope that you being in the industry here in Bendigo could see some upside. As for listening to experts who predict the next hotspot I would just say be wary. I got caught up in the USA hype and invested there by so called experts and paid the price for it. There were also the experts promoting mining towns and we saw how that worked out. There have also been lists put out by experts on towns that have ended up under performing. So again I just say be wary and do your due diligence. Even then it doesn't always work out
     
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  15. Brady

    Brady Well-Known Member

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    I purchased in Bathurst (west) late 2012 for $265k renting for $320p/w last electronic valuation has it at $340k (from what agent has told me this is about right) and rents for $350p/w.
    It's been rented to the same tenant from day 1. Pretty happy with the growth considering has always had good cashflow and no vacany with minimal maintenance.
    My growth looks about right with re.com data Bathurst Investment Property Market Data
    Pretty happy with this purchase - would have been nice to buy in Sydney (west) around the same time though :)

    Purchased in Wagga (mount austin) mid 2013 for $216k renting for $300p/w last electronic valuation has it at $240k and now rents for $320p/w.
    No maintenance issue, first tenant had to get rid of after 12months as one of them lost their job and couldnt afford - had vacancy for around 3 weeks waiting for good tenant.
    Not super impressed with the growth of this property so far, hopeful for some growth. But not too concerned decent rent long as it's tenanted - not big issue as has 2 bathrooms.
    It had the fundamentals when I purchased, so will continue to hold.
     
  16. Brisbane04

    Brisbane04 Member

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    Hi Brady sounds fine to me. Sometimes you have a win with good capital growth and sometimes it's a bit slow. But as you said as long as it's not hitting your hip pocket too much and it's rented in a place that's got decent fundamentals you should be alright.
     
    Brady likes this.
  17. Allgood

    Allgood Well-Known Member

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    Well done Brady. Not sure how my Bathurst IP has grown. Agent said it would be worth $x but always wary of overstating the asking price, so I'm glad your desktop val confirmed it. Paid $310 at Easter last year so haven't had it too long.
     
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  18. R377

    R377 Well-Known Member

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    Geraldton was another one that was popular at the time I bought into.

    Just put my house in Geraldton on the market. Only had 3 groups of ppl come through on 4 open inspections....
     
  19. MTR

    MTR Well-Known Member Premium Member

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    Geraldton market has tanked, regionals in WA in general has not fully recovered since crash in 2007
     
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  20. TMNT

    TMNT Well-Known Member

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    So guys.
    Let me pose a question.
    Based on history (yes history is not an indication of future)
    Based on cycles
    Based on economic fundamentals.

    In paper it seems now should be when the regionals (exc mining) should all be doing very well.

    However overall they dont seem to be