VIC Which among Mooroopna, Kialla,Shepparton is a good choice to buy IP? Looking for positive cashflow

Hi All,

I am new to the group (novice! )and am planning to buy my first IP in regional Vic. My budget is 330-380k. I have shortlisted a couple of suburbs in and around Shepparton (based on some preliminary research) that I believe will fetch good rentals and therefore a positive cashflow.

Questions to the property gurus
1. Are Mooroopna, Kialla and Shepparton good choices?
2. If yes, which one would you recommend to buy IP and why?
3. Any specific areas and streets in these suburbs I need to be wary of?
4. Any other suburbs in regional Vic that you would suggest at this price point, given my strategy on positive cashflow?

Thanks in advance!

 

Hi all,
Any suggestions on the above?

Thanks.

 

Hi Mate,

I am not sure on what basis you will trust a complete strangers advise.

The areas are growing, similar to any other area these days.

I will go with Mooroopna due to right renter %, right supply and low stock.

There could be future stock though.


Regards

 

Thanks for the reply!
Another question - What is your and other investors’ take on buying sight unseen? What is the best way to go about it (without involving a BA)? For eg. if I want to get local due diligence done before purchasing property (building and pest inspections etc.) do I engage and seek help from the Property Manager in that area whom I decide to manage the property for rent? Is it recommended that I first decide on the property manager in that suburb even before I start looking at the properties? Am not how it works. Appreciate your guidance and advice in advance!

Thanks.

 

Kialla is a lovely area. I always do the building and pest inspection before buying the property (or I make the contract subject to building and pest inspection). I personally would not buy without going to the property myself. Hard to gauge things like traffic noise etc. Once you buy the property you can then interview agents and decide on who will manage the property. It's a good idea to do some reading on the process so you are confident before proceeding.

 

I've invested previously in Geelong (choose that over Ballarat) a few years ago and achieved great growth. Now at Moe/Traralgon as I see there are good things happening out that way. Definitely within your budget and substantially closer to Melbourne. Moe is smaller but seems that be a number of estate builds going on so I would expect it to benefit the township.

 

Lol, I just started working as a BA.

But yes, engage a good property manager or talk to a building and pest inspector to have a quick look at inspection and offer them to pay.

When you can't be there, you
Either need the right team by paying them right
Or engage someone who has a team.

Just consider this as cost of doing business. You try to avoid that and you might see unpleasant results later. This is a big transaction and you intend to spend your hard earned savings over years. Be vigilant.

Cheers

 

Thanks. Yes, I have been looking at Traralgon too as one of the options.

 

Thanks, mate! I am willing to pay for the local due diligence but can't afford a BA at this point of time given my budget . I am just trying to find out how best I can form the right team. Also, given the lockdown restrictions it's not possible for me to do the inspections in person. Hope this makes sense.

Regards.

 

Good point. My thought process around the traffic noise etc. (given I can't be in person for inspections due to lockdown restrictions) is using a proxy such as data on street profile (more granular data than suburb level) in terms of recent rental and sale activity to see what's going on in that specific street. For eg. if properties in that street have a higher DOM (days on market) when compared to other similar properties in that suburb then it could mean something). Of course, there is definitely a risk of buying sight unseen (and this is more specific to the property) but I believe data-driven findings could mitigate the risk of buying in an unknown area to a certain extent. Does this sound reasonable? Happy to hear your thoughts.

 

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