Hello all, First post but have been reading and researching on this forum for months - awesome resource. I am a bit stumped and am hoping for some insight on good areas in Vic to buy an IP for up to $650k. This would be a buy and hold strategy for us, planning to keep for 20+ years. Of course would love some capital growth, however rental yield needs to be adequate for us to service the loan comfortably. I have been focused on looking at standalone houses for the capital growth advantage, as I would ideally want to purchase a home that could be subdivided down the track to then build another IP (or sell off) as well as potentially add value to through renovation in a few years. Given the price range, there doesn't appear to be any great options in Melbourne, and I have been focused on Ballarat based on my own research and some excellent information on this forum. Unfortunately the demand in Ballarat is insane at present, I cant even arrange any inspections. Also, from those houses I have looked at, there seems a fair disparity with rental yield (i.e. one I looked at in Black Hill was asking $650k however was only receiving $300pw). It did need a bit of a renovation at that price, however even renovated period homes that are going for $650k are only getting low $400pw rent. So starting to look like the horse has bolted for me! So ultimately open to any advice on where to buy in Vic with my price range, and a good balance of growth and rental yield. I appreciate that places like the house I looked at might have great growth aspects, however with a rental yield like that it would impact our monthly budget too much, so I realise I need to compromise on that in order to get a better rental yield. Although I would still prefer a standalone house, I am starting to open up to the idea of a townhouse, to get that rental yield up, so any recommendations for that would be awesome as well. Thanks guys!
Yep been looking at Geelong, but looks like with the recent growth there is a fair gap between purchase price and rent. The only area I have seen that looks like a good buy would be a newish 3bed in Armstrong Creek area for under $650k. What are your thoughts on that area? I’ve searched Armstrong creek on this forum but couldn’t find a great deal.
Tbh I’d be very happy with a $650k house with a 4% yield (around $500 a week). I appreciate that some regional towns are getting higher than this (like Hamilton) but I’d rather stick with the big towns from a risk perspective.
