How are the regionals doing?

That suggests it was underpriced. Is the market really that wild right now?

 

It wasn't under priced..... but there is a 0.9% vacancy rate , and most of what is available is quite old product. Combine those things and the result is 79 applications. There were actually 130+ enquiries, but only 79 applications before the tenancy managers removed the listing. They figured they had enough of a pool to select 8 tenants

There are only 51 total rentals available in Goulburn today, and very little of it is modern - https://www.realestate.com.au/rent/in-goulburn/list-1

None of this tenant demand is any surprise to me. I have long advocated the appeal of dual occs in the better regionals of NSW. I have been telling this forum for years that our Dual Occ's are going gangbusters. My builders and I have been doing these since 2016 and have seen exactly these outcomes in Orange, Bathurst and now Goulburn. I am only surprised by how few people have cottoned on to how good they are ....

It's the exact opposite of Dual Occ in SEQld, where far too many investors are purchasing the inferior version of Dual Occ delivered there, and far too many builders are delivering far too much of that inferior product into the far too few places where it is still allowed, which will ultimately lead to over concentration and rental cannibalisation.

 

The Vacancy Rate in Orange NSW has now plunged to 0.4%. Our Dual Occupancy investors there are reaping fantastic increases to their rental yields as a result . Our current location for Dual Occupancy is Goulburn NSW , and it has seen its vacancy rate plunge to 0.8% , and we already know how that's resulting in incredible demand and yields. Our Goulburn investors are already achieving over $16,000 per annum of surplus, after tax cash flow...so these low vacancy rates mean it's only going to get better! They are able to use that money to make extra repayments on their mortgages and pay down debt much faster than they would otherwise be able to. Love getting it right for our clients, and proving the anti regional naysayers wrong yet again.

https://www.propertyobserver.com.au/terry-ryder/116318-vacancy-rates-are-tight-across-most-of-australia-hotspotting-s-terry-ryder.html

SQM Research - Property - Residential Vacancy Rates - 2580

SQM Research - Property - Residential Vacancy Rates - 2800

And our next location Dubbo.... expect more of the same....



#16kgoesalongway

#wetoldyouso

 

Terrys back in business!

He's been waiting for the tide to turn regional for years so that he can once again be relevant

His whole business premise is built on finding 'hot spots' which i believe he isnt too bad at

The problem was that when Melbourne and Sydney were booming he was still trying to find regional hot spots because calling Melbourne or Sydney a hotspot every week for 5 years isnt exactly compelling or interesting reading

 

We are all bullish on areas we invest - here is hoping Moruya continues its bull run!!!

https://www.beagleweekly.com.au/post/new-eurobodalla-hospital-budget-now-extended-to-200m

Moruya bypass - Projects - Roads and Maritime Services

 

Ok so bit of an update on the Traralgon market (as it’s about the only market I really follow). Stock on the market for purchasing and renting is as low as I’ve ever seen it. There is only about 150 houses on realestate.com.au (some of which will be already sold), most of the blocks of land have sold, and apparently there is only 15 rentals across the board available. Prices are really starting to rise especially in closer to town. A lot of projects getting closer to completion at the moment so they should really increase the liveability of the area ($57m aquatic centre, performing arts centre, bowling alley and movies). I’ve got no idea what the future holds but most signs are pointing to very strong growth coming up for the area. @Bee-mumma from your posts it seems you are a local also how are you seeing it?

 

Traralgon: How property in this Gippsland town is riding a new wave of hope

 

I would have to say it is a really strong market in the Traralgon area. The fundamentals are solid. Rental demand is extremely high, with low stock and the cost of land has jumped to the next level. However, if you are thinking about investing here you would want to put your skates on and hurry up. Houses aren't lasting long on the market, meaning the next batch of housing to come on the market is pushing a little higher for price. The window of opportunity & great yields is disappearing. The area has so much to offer!

On the surrounding towns, we are also seeing growth. Churchill has seen houses under $200K for the best part of a decade, now the min buy in price is more like $250K. Morwell is also becoming a market where homes under $200K were plentiful even at the start of the year and are now in short supply.

We are very happy we purchased when we did! This area will become the next "Ballarat" in terms of house pricing, diversity of areas and growth.

Also, highly recommend the breakfasts and coffee from the cafe pictured in the article "Food Co" so delicious! Cafe culture, along side the other 30 or so cafes in Traralgon is booming. You can go to a different cafe each week.

The walking/cycling path between Morwell & Traralgon has also just been completed. This path joins the numerous green space paths throughout the town and you are spoilt for choice of nice places to walk or ride here.

Yep, highly recommend Traralgon for living or investment.

 

Land prices in Orange are surging. Up by over 100K in just 12 months .... our investor clients who have been purchasing our Dual Occ's in Orange over the past 3 years will see significant uplift from this, in addition to their already amazing cash flow. Our focus now is Goulburn, where the cash flow is even better than Orange and where we expect the same results .....

 

Interesting to hear the bullish sentiment - friends from the area were all looking to sell and move a few years ago because they saw no economic future with the ongoing greenie attacks on electricity and forestry. Curious to know what you see as the economic base of the town now?

 

Interesting... so your friends stayed @Monopoly Man in Top Hat. I'm thinking this was a good choice.
This area has quite a lot of jobs, and 'economic base' that is not dependent on just one industry.
- Farming
- Power
- Paper
- 'Lion' yogurt factory
- Education
- Call centers & ASIC
- Water
- Health (LRH is a large training hospital)
There are probably a few more that I haven't remembered too... feel free to chime in!
But yes more people are recognizing that we need more renewable power, but we are still heavily dependent on our power stations for Victoria. In the future I can see that the Paper Mill and the old Hazelwood power station will be developing some projects that will see further economic prospects. There is a drive for these to be more environmentally friendly. This will require major capital being spent in this area, and a long term forecast of job opportunities. Major government investment occurring, indicating that they see growth in the Traralgon area. The building industry is still developing more housing sites. All this, within 1.5hours from Melbourne. When people are able changing work habits and working more remotely. Even if they had to go into Melbourne a few days a week for work, this would be completely achievable and their cost base of living would be a lot lower.

These are the industries that are needs, not wants. We need our food, we need our power, education will always be a need, we need walfare back up, we need water. Ok... so printing paper might be on the decline. But the majority of these industries are a need.

Traralgon has more going for it than quite a few other regional towns.

 

Thanks, great to hear your perspective! Do you know which corporates have call centres in the area?

Of the contacts I have in mind:
1) One couple moved to the NSW south coast for retirement
2) Two others still work/have businesses based in Traralgon but have now moved and commute from places like Inverloch and Warragul
3) One stayed.

 

Does anyone have a view / insights on how Bendigo is going at the moment? Being overseas I don't see alot of local news.

I bought a property there (Long Gully) last year, 1,000 sqm, two street frontages (front and back), with only an old 2br house on it. Am thinking of subdividing and building a dual-occupancy on front and back, turning 1 income into 4. But I have no idea / haven't research if that type of product would suit the area.

I haven't done any research at present re counsel / planning etc. to see what could be built. Back of the envelope calcs suggest $600k to redevelop. In the new year I'm thinking either to (1) look further into this possible redevelopment, or (2) just buy another investment property (not in Bendigo). [looking in new year as I need 6 months in current job before loan application, either way].

 

Check the local details re subdivision etc but I’m pretty sure Bendigo is one of the new trial GF (auxiliary unit) areas allowed to separately rent if you are looking at a dual occ. Keep that in mind for possible options.
See my seperate post re trial 6 month approvals in Vic for this.
Good luck

 

Aussie Broadband call centre is in Morwell (just up the road) and some government agencies (Not corporate) may have call centres in the region but I’m not sure on that one.

 

Bendigo is flying at present, very little on the market and huge demand from buyers. I own a few in Strathdale and have been getting calls from agents needing listing as demand is huge.

 

I'm pretty sure that there is a massive Centrelink call centre in Traralgon, employing hundreds. It has been there for many years. Can anyone confirm this?

 

I have been buying in Traralgon since 1994, and have never sold any. Advice from "experts" every time was avoid, everything closing down, don't buy, doom and gloom, bad investment blah blah etc etc. Fortunately i didn't listen to any of those idiots and here i am 26 years on, with an outstanding portfolio. My sons have now started buying in Traralgon also. It is a very, very under estimated town in my experience.

 

Mildura has had a “boom” year in 2020:
according to sqm:
- asking prices up 17.5% the past 12 months. This is reflected in sold prices as well. There has been a significant jump. My house valued at 250k a year ago, I would get 275k now - not 17% but a decent rise
- vacancy rates at 0.4% - rents have continued to rise, as they do every year, but probably a bit more than the average the past year.
Don’t know the exact drivers behind why this market has done so well but great for investors. I expect it to go back to the average annual growth rate of about 4% in 2021. It’s gone from super cheap to now more in line with prices in a lot of other regional towns.

 

Bendigo is going CRAZY!

It is only 150 km from Melbourne and access to it via Calder is easy with no meandering through small towns. A 1000 - table New Government Hub is now in process of being built in the CBD. Three separate 4 Stars branded Hotels (not motels) are also in process of being constructed to prove the confidence Hoteliers have in here. The latest announcement that Bendigo will be linked to the Airport by train via Sunshine will further improve its connectivity.

Yes, prices have certainly gone up significantly but the potential for further growth is certainly there. It is still not too late to enter into this market.