VIC Morwell/Traralgon

The only bit in Morwell that I will consider living in is the bit in Maryvale near the private hospital.
Give you a tip, a good place to find out where not to buy in Morwell is the dhs. When an area is saturated with social housing , avoid. Unfortunately you’re gonna find not many areas in Morwell don’t have housing commissions.

 

I can share few tips that could be helpful to eliminate (this is more of elimination rather than selection) specific pockets in any suburb.

Go to microburbs.com.au and enter the property address. You will find multiple sections. Click on affluence section and check for public housing percentage. Avoid any property located in an area which has more than 3-5% public housing. This is based on ABS 2016 data, so can be a tad outdated but this is good to filter areas.

Another tip is you can call and speak to a couple of agents (not the one who has listed the property!) and property managers there and ask them questions on the desirable pockets and rough areas in a suburb. Majority of them will provide unbiased feedback.

These tips are pretty handy if you want to buy sight/site (I don’t know which is correct ) unseen, especially for those stuck in lockdowns like us.

Good luck!

 

Just checked the data out of curiosity. You are 100% right!! I see that Morwell on an average has 7% public housing, but Maryvale Road has 0% housing trust.

 

Awesome website, thanks for sharing.

 

Yep The area near Maryvale Hospital is the only place i'd buy in Morwell too. Consider Churchill, there's a lot of new estates opening up there

 

What is it with you guys? Sheesh, 3-5% public housing and you are scared? That's nothing, and in some areas of Sydney, they are now placing H/C tenants into newer estates. My best friend owns one and has a head lease from Department of Housing since new. I'm from Sydney, and most of my portfolio has been ex-department of housing.

When I first started, that was all I could afford. I've also got a smattering of properties in better areas as well, and I can tell you now that income is no precursor to the way that someone will treat your property. I've had extremely good, long term tenants, in housing commission areas and I've had bad tenants in 'good' areas.

The trick is to drive the street, at different times of the day. Best when it's not 'feeding time at the zoo' as someone once told me. So, not at meal times. Are there hordes of unruly people roaming the streets, or those that look like they are druggo's? Yes? Avoid. Is there dumped cars & junk in the yards in the vicinity? Yes? Avoid. Other than that, you are pretty safe, BUT make sure that you've got a good PM. That applies to everywhere, not just ex-housing department areas.

Not everybody in housing department are scum. Some are just little old ladies that have been peacefully living there by themselves since their children left home. The housing department have learnt their lesson as well, that is why there is a lot that have been privately sold off, so as not to create a ghetto.

In fact, we LIVED in one of the largest housing department areas in Sydney for 11 years after the failure of our Business. We learnt a few interesting things. Like us, there were plenty of people living peacefully in their own homes that they had bought. There was one family at one end of the street that had issues. Drugs, and I think she turned tricks as well. We never met her, but everybody knew of her. Everybody else was fine....yes, even those who were renting the housing commission homes.

We have one home in Traralgon. Have owned it for, I think, 22 years now. It's in Stuart St, which is in the no-go area you all talk about. We've had the same tenant since we bought it. Pays his rent on time, and keeps it neat & tidy. No, he's not unemployed. What more can you ask.

 

This is essentially the outcome most landlords would be chasing/would like to have. What happens on the street or next door should be secondary, I agree. Infact the stigma of it not being a good street could become a blessing in disguise and there is scope to negotiate a good price.

What matters is how and when one can capitalise it. Good on you!

 

Good points. Unfortunately, we don't have the luxury to to do this in the current environment in Victoria. A proxy would be to rely on available tools and data instead. I think that's a reasonable approach for a newbie and budding investor (with a low risk appetite) who is not familiar with a suburb.

 

The stigma will fade over time, although in a regional area it may take a whole lot longer than Sydney. Just look at how Western Sydney is currently performing. Granted there is major infrastructure coming, but it did well the previous boom as well.

 

You won't be locked down forever, and Dan, the lockdown man will have to concede at some point.

 

but if i had the choice between morwell and churchill...id go churchill!

 

haha...hopefully there is light at the end of the tunnel, by which time the market would have already gone up by 10-20k easily

 

as mentioned earlier if yiou had purchased 6-12 months ago youd be well up , not now...everyone already knows....just like venus bay, those sub 100k blocks are well gone...

 

For anyone interested, I've compiled data on land estates available from Moe through to Traralgon.
I can't guarantee the accuracy of the data as it's been pulled from a number of websites, however I'm hoping it would be close to release numbers.

 

Thanks for the share. Question is how do we interpret this data? Wouldn't too much of land supply cause supply to outstrip demand which will impact property prices and rental market there? Or will the land releases happen in a phased manner commensurate with population growth? TIA.

 

Depending on where the developments are occurring and how much infrastructure is already in place, I typically see Greenfield developments having a multipronged effect on a local economy, being;

1. Increase in population to the area from greenfield development sites, resulting in;
2. Increased jobs to cater for increased population or establishment of new businesses seeking to capitalize on the rise in population, resulting in;
3. Increased spending in the local economy, which prompts;
4. Improvement of local amenities (becoming a dynamic city) due to the Council and businesses recognizing the increased activity, resulting in..... an increase in population as the area becomes more desirable, etc

Should any part be fueled, you could assume each subsequent part would benefit.

To your points, IMO, I don't believe that the purchasers of these greenfield estates are doing so on the basis for investment/ to rent. From my discussions with real estate agents handling the sales transactions, the vast majority are tree-changers/ first home buyers and upgraders. From an investment point of view, I also don't believe the numbers stack up, some estates are selling in the $400k ++ range, whereas others more affluent estates are selling in the $600k+ price point.

Rentals in these regional areas (Moe) typically lease for $320-$370. As such, investors who are looking for better yields typically purchase brownfield residential homes which sell more in the range of $300k-$380k.

 

Some food for thought What is Risk of Infill? - Select Residential Property

 

All good points to consider, the estates that they are referring to certainly generate thousands of new lots with the allowance to continue expansion almost indefinitely. I would expect smaller regional towns to be more considerate to contain estate growth to what is appropriate and viable for the area (you would hope).

 

i recently purchased in traralgon. demand for rents is extremely high and with new hospital being built along with hydro plant this will boost employment as well as popoluation growth

 

They're replacing LRH already?