VIC IP in Regional VIC

First time investor here.

We would like to invest in regional VIC as we don't feel comfortable in going interstate for our first IP. We would like to keep it close.

Budget is max 550K and we are strongly considering Shepparton, but also Bendigo and Ballarat. Its really a difficult decision so I am interest to know what others think about regional VIC.

 

Bendigo may be the safest bet, especially if you think labor will win the next election. Most Regionals will get SFA. If liberals win you may want to consider places like Woodonga which may get a $ Billion and 10 Billion from the multiplier effect from a New hospital or even Warragul and perhaps SwanHill. Mildura may get a new hospital, improved rail links and freight hubs. Every place pretty much has the same dynamics , buy in a place you have some insight in to the nuances. There can be more variation within a city, than between them. A good location in an ordinary performing LGA, can be better than ordinary performance in an out performing LGA. It probably doesnt matter much there may only be 12 months difference between an area under performng and out performing. You may want to wait until after the election as Labor dont spend money more than 150k from Melbourne and do a half arsed job if they do.

 

Thank you for your comment, so much appreciated.
I wasn't thinking about the state election that much as it is in Nov and we are ready to do the purchase once a good opportunity appears, but we aren't in a hurry either, so we will see what happen. We are checking Bendigo as a second option but there are very limited good properties in our budget (or at least in the areas we would like to have it)

 

If you haven’t already done so, have a read through the threads on Bendigo. I know Bendigus (amongst others) have some really good insights.

Which areas of Bendigo were you hoping to buy in? Most suburbs have good pockets and not so good pockets. So your strategy will inform what sort of property is a good fit. CG or cashflow?

 

Thank you! Yes I have read @Bendigus posts, very helpful thank you and I am looking in the Bendigo pockets he recommends around Floral Hill, Kennington, strathdale, but our budget is low for a nice place around those area. We are definitely looking for CG first, but having a balanced CG/cashflow would be ideal and that's what is dragging us a bit to some areas of Shepparton which we also think should have some grow in the next few years

 

I think $550k is enough for Bendigo. Sounds like you are looking in the better parts. I wouldn't instantly dismiss other parts too. Lots of construction across Bendigo. Many areas are on a good path forwards

 

Thank you! What do you think about Kangaroo flat, eaglehawk and epsom?

 

I'm not a fan of Epsom. White hills is a little closer and more established.

I like kangaroo flat near the indoor swimming through to golden square.

Parts of Eaglehawk are good. I'd say south and south east of the lake. Stay close to the lake.

I'm open to long gully... I think on the long term it has great proximity to CBD. Need to be careful which parts though

Parts of golden square through to fora hill might still be in your price Range

 

@aarond knows more than me

 

Thank you very much! I will look into those pockets too.

 

i just have a question for regional vic folk, do you feel the market has shifted away from regional vic or not? with alot of "housing pressure" do you think rentals are still in demand in this area?

 

Another vote for Bendigo, the closer to the centre of town the better - new major regional hospital, international campus of La Trobe Uni and a strong tourist location.

 

A few years ago Warragul was under consideration. It's not as big as other country towns, but it's big enough. There were nice houses close to the centre of town - perhaps 800 metres or so - that could be bought for a good price and renovated. One key point for all country places is to be well above flood levels.

 

According to Corelogic for year ended Dec 2022., Red Cliffs up 3.8%, Mildura 2.5%, Merbein 1.4%. Over the river in NSW Gol Gol up 12%, Wentworth and Buronga up 10%. Still strong demand, lots of people at Opens more supply, more off market offers many selling before they hit the market. Still tight rental market with 0.6 vacancy. Shopping mall bussier than ever. Staffing still a problem with restaurants and coffee shops closed for 2 days a week or closing at 2pm and advertising for staff. Banks closed sometimes because of lack of staff. Commercial vacancy halved. Bumper harvest with bumper prices and surprisingly good quality of grain farmland values continue to rise exponentially, 50% in the last 4 months, chinese buyers back in market, but aggregations are being broken up and sold to locals. I sold a farm before harvest, the farmer didnt know if he could get funds to buy it, after harvest said he had a bumper crop better than expected and could pay cash. People are picking up extra money working for$ 36 to $50 an hour cash. People are getting double the award rate they were getting a few years ago.

 

Bendigo I find is very expensive now. Nearly as much as Melbourne

 

Currently looking in Geelong and the greater area surrounding it.

Interested in units. Especially ones that look to be poorly managed and run down.
By the time winter arrives there may well be some more motivated sellers if or when the local economy goes into a funk!

I spent most of the day yesterday doing inspections.

 

The calibre of tenants and proximity of social housing are important considerations. If buying a tenanted property, you could ask to see the rental ledger, so the vendor can prove the tenants are good and paying on time (which is something they don't have to disclose in the vendor statement/section 32).

 

When looking at units in smaller lots such as 8-12 together, I'm seeing some that have had what looks like no maintenance whatsoever since they were built in the 1990's. You have to wonder what the owners are thinking putting them on the market in such condition. I wonder how hard they are to sell now. Still, I suppose there's no problem that a lower price won't solve?

Good point about the rental ledger!

 

Really look into Colac, Victoria. Some great buys. Some big industries established and currently shortage of housing supply, which are pushing up rents!

 

Hamilton is the same!!!! I'm about $90pw below the median! I could get 350pw!. Still good 3 bedders with sub dev potential for 300k!