How are the regionals doing?

I thought new NRAS was all dried up now?

 

Not completely

 

Don't leave us hanging...

 

I didnt. I said I had a project coming up in Goulburn that is NRAS approved. It's a townhouse development.

I also have some brand new 4 bedroom townhouses/villas in Perth that are NRAS approved.

If you'd like to buy one we cant have that discussion here...you would need to PM me instead

 

hey @euro73 now that Sydney is of the boils and dropped around 10% for houses, if this trend continues, it will be a lot more affordable and therefore less justification for moving away from Sydney, would the tree change trend slow down and eventually reverse ? This has happened before, why would it be different this time?

 

I dont agree with the premise, to be honest. If borrowing capacity for FHB's has retreated by 10% -15% and prices retreat by 10-15%, their position hasn't really improved at all. If borrowing capacity for investors has retreated 50% and prices retreat 10-15% their position still remains far worse than pre APRA.

I also dont believe the tree change or sea change trends will slow.... there are still massive CGT profits to be realised for Sydney buyers even if there's a 20% or 30% correction. Remember - these retirees bought 15,20,25 years ago ...not 15,20,25 months ago. They are still well ahead, profit wise. Well, well, well ahead

There's also the new tax incentives. The additional 300K of concessional contributions to Super that many retirees can now take advantage of (since July 1) will still becoming very attractive to many. Couples can get an extra 600K (300K each) into their Super using the proceeds of their PPOR sale ( provided they have owned it for 10 years) , which supercharges what are already CGT free profits by allowing them to move into a tax free environment for reinvestment.

You have to ask yourself how retirees ( or those approaching retirement) with $1.5 or $2 Million type Sydney PPOR's and not enough savings or super to maintain the lifestyles they want, are going to live... sure - I accept that many will probably stay put and draw a pension because the PPOR is exempt from the pension asset test... but I dont think today's retirees have the same limited expectations of life as the post war era had. They want more. Much more. Travel, Eating out. Car upgrades. They have become used to a higher standard of living and sitting on equity they cant access while they eat beans on toast at home , wrapped in blankets because they cant afford the heater to be on isnt going to appeal to plenty of them I'd suggest. There's reverse mortgaging available to them - but giving up a big slice of their property over time so they can eat smashed avo on toast instead or baked beans on toast probably isnt going to appeal either. We know this because that type of product has already existed a long time, as has a Centrelink initiative around that - and the subscription rates have been pitiful. Now maybe that will change, but the penetration rates after many years suggest that people dont like those options very much. So I reckon an increasing number will continue the trend to cash out and downsize to coastal or regionals ( sea change and tree change) so they have funds to enjoy their retirement ..

 

Any updated thoughts on Bendigo? Looking to buy there this month.

 

I think the Bendigo market is warming up. Not hot like Ballarat but certainly receiving greater interests from investors and home buyers alike.

A plus point for investors now is the vacancy rate here is low. You can rent out a house easily here once you have it, a complete reversal of the situation here 2 years ago

 

Thanks. I posted this elsewhere, but any recommendations for a PM?

 

I have been abroad to save a deposit. I have about 40-50k.
Would really appreciate some advice. Father is getting older and have to go back soon.

My options are
Hamilton ( Where my Dad lives, want to be within 2 hours drive )
Portland
Ararat
Ballarat
Horsham
Warrnambool
Mount Gambier
Millicent

Max spend is 230,000, hope to spend less so I can invest in education / cope with bills and rates. My first house, am a low income earner, 43, not married, no kids, just HECS debt and HELP debt.Want to buy 2 bedrooms minimum, Plan to live in it for several years then eventually rent it out. Any thoughts? Thanks guys.

 

For investment: Ballarat

For somewhere to live near your dad with a uni and an good lifestyle: Warrnambool (But don't expect fantastic returns)

 

Thanks for that. I guess a unit is better to avoid high rates etc.
Good points Beezlebub. In my experience, living in a city that has a decent hospital might be more important than a uni. I know this from hard experience, because Hamilton doesn't have an oncology ward. Thus people in the stick tend to have a 5% higher mortality rate. When you get older those things become a factor.

 

Unit in Ballarat for the win. Has a hospital, very good investment prospects and proximity to hospitals in Melbourne.

 

Ballarat has two unis and two hospitals, one of which houses the BRICC (Ballarat Regional Integrated Cancer Centre - a world class cancer centre providing care, treatment and research for the people of the Grampians Region of Victoria.) Also, last time I saw the figures, the unemployment rate was under 4% and the population growth rate was above average. So good prospects overall at the moment.

 

Thanks for this. Yes I noticed Warrnambool hospital got 0 extra dollars in the last funding round. Portland, Warrnambool, and Hamilton are getting left badly behind. Perinatal deaths between 2008 and 2012, were 80 per cent more likely at Hamilton's maternity unit, among the worst in the state. The council is stuck in time there. My parents bought a small unit for 20k in Portland in the 90's. They sold it for 60k and almost 20 years later it is being sold for 65k.

 

That being said, I would love to move to Portland. Good surf, and I could build a nice house right across the road from the beach for the same price as some units in Melbourne. Alas, the other half disagrees.

I'd never invest there though.

 

You are right. I have a soft spot for Portland. It's not as flashy as Warrnambool but I like it because of that. They have a beaut little art centre there. It also has a few properties that have bores from time to time. Geothermal swimming pool. Good fishing.

 

Oh the pool closed down some time ago. Not been there in a while!

 

Just picked up a place in Parkes, NSW. Newly upgraded airport, newly upgraded hospital, new and expanding mines, newell highway overtaking lanes, Parkes highway bypass and inland rail. Hundreds of millions in investment. My property recently had a lease renewal and I had 8 groups through on a Wednesday lunch time and got a rent 15% higher than the previous agreement.

 

Orange economy thriving at every turn - Orange City Council