VIC Morwell/Traralgon

Hello everyone,

As regional suburbs are currently on the rise, is somewhere like Morwell/Traralgon somewhere worth investing?

It is nearly 150km away from Melbourne CBD, so I am unsure whether there will be much CG possible in the near future.

Or do people think suburbs like these are solely just for cash flow rather than CG?

Looking forward to hear some opinions.

 

Hi lazza228

I am looking to purchase an IP in Traralgon in the near future.

Personally I am looking for a balanced cash flow positive / long term growth for this region.

I know from contacts in the area that their has been a lot of money spent in the area recently (new cinema, arts center, etc) which I think points to the area taking the next step in growth.

 

I have looking into Traralgon due to good rental demand. However, I understand Traralgon was affected by recent floods?

 

Yes they had some bad floods last week but as long as you don't buy a property near the river you should be okay.

Also it was a one in a 100 yest flood event so it is not that common for the town to flood like that.

 

Traralgon is booming at the moment
Lots of interest from Melbourne buyers, therefore stock is drying up
Morwell is also worth a look, a bit cheaper in price and demographic but be aware of certain areas

 

Hopefully they recover from the floods. Thanks for your advice.

 

Any areas that is recommended/to be avoided in Traralgon? How about the West End?

 

I believe the West End around Kay Street and near the schools is a desirable area.

 

Th

Thanks. What is your take on current prices? Are they just starting to peak or have they already peaked? And how is the rental market in Traralgon? I am still undecided between Traralgon and Shepparton for IP. Stock seems to be low in both these suburbs.

 

Prices still rising but not much stock. Don't know about rental market but i'm sure it would be ok.

 

already peaked, should have bought 12 months ago.....

 

Are you suggesting then that there is little room for decent capital growth in the longer term as prices have already peaked? Is that how I need to interpret what you have mentioned? My primary objective is good rental yield though.

 

if you had bought 12 months ago youd be paying under 200k for a 3 bedder, now your looking around 300-350k

 

Rental yield is still decent. For a $350k property you can expect a $350 to $400 a week rent.

Short term maybe the growth has peaked but I still feel Traralgon is a good long term bet. Given the high yield the property should pay for itself so you can afford to be patient.

 

Also I am not sure either Shepparton or Traralgon.. I love Bendigo but I think I missed the boat.

 

You should try do researches into other smaller towns to see which ones have not really gone up in prices but which possess the potential of doing so. By the time these towns hit the limelight, it could be a little too late again.

But even being a little late, it is still better than not doing anything. In my opinion, Traralgon, Moe, Morwell, even Bendigo are still worth buying. You just need to be quick and be very grounded in these markets to grab the better deals. The simple logic to the above is Melbourne house market is also booming now. So the gulf in house prices between Regionals and Melbourne will always be there, despite Regionals increasing in prices. And it is this gap that will give Regionals the opportunity to increase in prices still. I have not even included reasons like work from home, yearn for Country life etc which will make Regionals popular with certain people.

 

100% agree. Stock is very low. Not sure if it is due to properties being sold off market or sellers playing the waiting game to see if prices go up further before they decide to sell

 

Agreed. Good Victorian regionals will do well. I think Dubbo NSW also worth considering. Thanks

 

Wow stock levels are so low in Traralgon at the moment.

Looking online their is not much too choose from at all.

I might get in contact with the local Real Estate agents directly as I feel in these regional markets they might do quite a few sales off market (just a guess)

 

We've had one in Traralgon for over 20 yrs. This is the first flood that I've noticed.