VIC Need help narrowing down area/strategy

Hi Westie.
Many thanks for the reply and suggestion. While I wish I had gone to one of the brokers you mention, or even Terry_W from the begining (maybe I wasn't such an avid reader of the forum at the time), I am hoping not to change brokers. After having been to about 4 brokers over 1.5 years, she was the only one who was able to get my house re-financed. Whether it was due to market conditions changing, or she found some way others hadn't thought about, but she got the house re-financed and now I have access to equity, all between Jan and March this year. I think credit was starting to get tight around that time, but she still managed to come through. So, I would like to give her a go for a little while.

On re-reading my post, it may come across as she is touting a certain direction on purchase. That is an error on my part. Her comments were basically, I need a property with high yield ( 4.5% to 5%) within my price range to be able to buy the IP. At 5%, depreciation is a bonus, at 4.5%, it starts to become essential for cashflow and serviceablity. The aim is to not go into too much negative gearing after all things are considered.

I see that the guys you mention also have "property strategist" in their profiles. Does that mean they can help with planning out a road map to the first and future purchases? Without having to do the role of a broker?

I grew up in Geelong, so know it quite well. The areas you mentioned were on my mind when I was looking a month or so ago, but the rents are not enough to support the purchase. I esp like Thompson, but even though the block sizes are decent, the houses are nearly all placed across the block, making future sub-division impossible. Similar problem to Melton. Plus yield is low.

What do the QLD guys think about Flagstone?

Regards,
K.

 

Salisbury in Adelaide could fit your criteria. Decent yield and good prospect for growth within your budget as well.

 

Good point but I read on the forums tenants can be a potential headache in Salisbury. Maybe things have changed, best read up a bit more.

 

That second Newcombe property that Westie posted rents at $320 pw so has yield of between 4.06% to 4.39% based on the listed price range. Know that's outside your target range but only just on the most optimistic scenario.

Out of interest, how is Geelong holding up generally? Like in many areas if the country I imagine there's a lack of stock supporting current prices but things will be interesting after 6 months+.

 

Anywhere around Petrie / Moreton bay area of Brisbane fits your goals. I don't see the need for a BA, I own 2 properties in Mildura, Victoria and I've never been to Mildura.

 

Geelong's holding up just fine, for now that is. I was talking to the agent looking after my properties there and she said people have had to drop rents slightly (from $450/week to $430/week) to get them tenanted. Sales are happening reasonably quickly but low ball offers are being made and being rejected.

 

Thank you Westie, Spiralkut, George, and Ko Ko Naing for your help and suggestions.

I have been looking at these areas as much as I can since your posts.

I think age, past experiences, and future expectations have made me overly cautious. While technology has been a boon for most people in property investing, looks like for me it has caused a case of analysis paralysis!!!

Am wondering if I would be better off engaging a buyers agent? Any one have any recommendations for the Geelong and Brisbane region?

Regards,
K.

 

Brisbane anywhere in the Moreton bay region is good. I'd say look at Petrie or close to it as there is a massive infrastructure overhaul going in the works there.

 

Hi!
Have you thought about ACT? Try Charnwood (entry prices, excellent yield and rising in house value very nicely) also think about the regionals in NSW. Yass, Goulburn, Orange?
We were super keen on Grovedale, Geelong but the high house prices and low rents, it put us off.
We are too used to our high rents in Canberra! Good luck!

 

Hello community.

All I can say is that my plans have been hit by bad timing completely. Would appreciate if you guys could give some opinions.

I found a BA, we shortlisted a few suburbs in Geelong, and knew exactly what we were looking for. and the day after Victoria went into lockdown. Since then, the BA nor myself have been able to go to Geelong to view any properties, and even though I am prepared to buy something without seeing it personally, I would still prefer for someone (namely the BA) to view the property thoroughly. The way things are going, it doesn't seem Melbourne metro will be able to go to regionals anytime soon to do personal inspections.

Now, I am stuck whether to look interstate (qld, newcastle) or to wait it out for Vic restrictions to ease. From what I have continued to read on the forum, and news articles etc, there seems to be not much sign of a downturn. Now my concern is if decide to wait it out for Victoria, I could easily be missing out on getting into the market earlier by not buying interstate.

Thought I had cleared my confusion, but now I am back to being confused again.

All help, and suggestions are very much appreciated.

 

For your budget, I think Bendigo or Ballarat is your best bet.

What about Lara, as an example
https://www.realestate.com.au/property-house-vic-lara-134594026

 

350k-400k will buy you a new 4x2x2 in Hervey Bay in an estate 2-3 kms from the ocean...or an older house much closer (400m-600m) to the ocean.

An older house closer to the ocean would be my preference.

Yield of around 5%.

Great growth potential over the next 5-10 years.

Or...350k-400k will buy you a new 4x2x2 or older house close to the beach in Agnes Water.

Agnes probably offers greater potential for capital growth (coming off a lower base with greater likelihood of infrastructure/development in medium term).

DYOR...

 

Hi VICPER.

Many thanks for the reply. While I was looking in Ballarat as well, but it and including Bendigo, and Lara is outside Metro Melbourne. No physical inspection possible. Atleast interstate, I can engage a local BA to find me something that fits with my strategy.

The one you mention in Lara doesn't fit with what I want to do. To maximize equity position, I am looking to buy something with big enough land component to subdivide into atleast 1 more (eventually)

Regards,
K.

 

There has been talk about Andrew's easing some restrictions this Sunday, maybe hang on a few more days to see how it plays out?

Rattled premiers shift focus by easing lockdown restrictions

 

While I realise this one's more than what you're looking at doing, here's an example of what's possible and where in Lara: https://www.realestate.com.au/property-house-vic-lara-133153118. IIRC, this property sold for $650k or so 2-3 years ago. I was there at the auction, just to learn more about the market. Rainy day, the auction was indoors, lots of people, vendor bid was too high for the bidders and it passed in back then. Whether there's money to be made or not, please DYoR. This was an example of what people are looking at doing. There have been a fair few subdivisions on/around McClelland St and towards Mill Rd.

 

What drives price growth?

Vacancy rate for a suburb in Ballarat....approximately 0.6%


Vacancy rate for Dandenong....approximately 1.5%


Yield higher for the Ballarat suburb

Projected population growth for Ballarat around 4%

I know which way I'd swing my bat @kermut

 

I have two IP in Ballarat. Currently one is for rent. The agent got 50 applications already and tells me that none is decent. I asked the agent to email two best applications and yes, they are no decent, unless the agent lies.
I am not sure Ballarat has high quality tenants. Certainly their quality is not as good as in Melbourne because I have several IPs in Melbourne too and can compare.

 

Could you please elaborate on this?

 

Just because you have an issue with getting good tenants, doesn't mean everyone does. I have a property in Ballarat. I have a great Agent and great tenants. Always pay on time, and look after the property.

You cannot tarnish a whole city simply because of your experiences. The reality is Ballarat population is growing around 4% and has been for a number of years, vacancy rates are low, and good tenants are out there looking for good properties. That is the reality

 

I guess, everyone has their own experience and can share it. Therefore, I am fully entitled to share mine.
Among more than 40 applications for the house that is now for rent, the "best" applications are people who live on one pension or people who rely on Centrelink. Lost of applications are from people who can't meet the repayments. Sorry but I have never had this experience in Melbourne or anywhere else. It does not really matter whether Ballarat is growing by 5% per year, what matters is whether people work or not and how much they get.
Salisbury vacancy rate in Adelaide is also low but I would never buy an IP in there.