VIC Warrnambool - Where is it heading ?

Hi all,

Looking to buy regional, and have been focusing on Warrnambool due to its coastal location, and multi-faceted economy. Was also hoping to pick up a bargain, but looks like that ship has sailed with 2 years of growth resulting in a 10-15% rise in prices.

Reading this forum, seems there are far better regional opportunities and with all the talk of fast rail between Geelong, and also the Northern regions (Shepparton), will Warrnambool be left behind ?

For regional locations, is the premium of purchasing in the CBD worth it, considering the suburbs are only a 5 minute traffic free drive ?

Townhouses v unit v houses ? I'm guessing CG is with houses ?

Have been looking at a townhouse that is quite central, and the rental yield would be (after real estate management fees), gross 3.89% and net (insurance/rates), 3.30%. Budget of 400K

My senses are confusing me, between this is a good long-term stable investment, but the rental yield, with most likely slow CG (buying established townhouse 50K above 2013 prices), the investment doesn't stack up.

Interested in the experts thoughts.

 

broadly are 4 types of regionals
1- Those that are close to large cities who draw people in for an easier lifestyle
2. Those that are somewhat isolated from larger cities and stand on their own as.an economy
3- holiday towns which can be isolated by distance but still benefit from a thriving economy in large cities
4- mining towns

examples
1- geelong, newcastle
2- warnambool, wagga wagga
3 - Lorne , byron bay
4- Moranbah, Newman

If your investing in number 2 i would want a pretty good rental return - 6% min
and would only look at houses

If number 1 town then you can pretty much invest with the same principals as capital city

i think buying a 400k townhouse in warrnambool would.be a poor idea
- same money and you get a house in adelaide, perth or brisbane

 

Thanks for your input strongy. It ties in with the concerns that I was having, and on the flip side, had the FOMO of Warrnambool turning into the next Byron/Lorne.

 

I think Port fairy is a lot more like Lorne than Warrnambool but you get better long term tenants and stable employment options in Warrnambool and Colac

 

Hi strongy1986,

Would you put Drouin/Warragul/Bunyip in type 1 or 2? They are within an 80-90 min commute to the city but don't really have their own large economy.

 

Depends which area of Warrnambool?

 

I live near Warrnambool and own two houses there that I've had long term. I pretty much agree with Strongy. If you're looking around the 400k Mark then you can get a lot of value in Adelaide or Perth. We have just purchased again over there in Adelaide.

Warrnambool is a great place to live and has a lot going for it. Unlike Ballarat however, it is just a little far from the city.

Being such a safe political seat is a problem too as not much gets done down here. For example, the Princes highway west of Colac is a discrace. Rail services are also second rate to other parts of the state.

 

Some of the streets out to the north of Gateway plaza are lower socioeconomic and again out to the western fringe where there is industry, just to be aware.

 

I’d say particularly around McGregors Rd & Wanstead St area to the south/SE of the racetrack. Houso commission area.

A quick google maps street viewing will also give you a good idea as well.

 

If you were looking for a PPOR then Warrnambool ranks pretty well
Revealed: The best place to live in Australia - and it may surprise you

 

i guess type 1 and some would consider fringe melbourne

probably would be a bit gunshy investing in these types of areas given we will have net negative migration to Victoria this year and these areas have been fuelled by population explosion
They will still be building all the new houses but where are the people coming from?
Im not sure if Warragul and Drouin rank high on the priority list for Melbourne escapees/ tree changers
could be wrong though

 

Thanks, would you say Kilmore/Broadford would be a better area? Or Ballarat? Looking to buy my first house within 60-90 mins of Melbourne and would prefer a country area. Need to live in it for the first 12 months and I can't afford a house in Melbourne. Budget is around $380-420k.

 

Warragul is an attractive place and is growing well. Quite a few live there and do the commute. If I had the option of there or Ballarat I know where I would rather live!

 

Can i ask what is the principal to invest in type 1 property please?