VIC Wodonga as First IP for +CF

Discussion in 'Where to Buy' started by johnywusup, 20th Oct, 2019.

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Solid Investment for a long term cash cow?

  1. Yes

    33.3%
  2. NO

    66.7%
  1. johnywusup

    johnywusup New Member

    Joined:
    19th Oct, 2019
    Posts:
    3
    Location:
    sydney
    Good evening Fellow PCer's long time lurker, newly founded member!

    I have spent some time researching the current market in Wodonga along with reading some previous posts from other users quite some time ago...

    I have seen quite positive ideas in my research, including a large increase in population and number of renters vs property owners. Of course none of us have a crystal ball to look into and predict which area will experience the biggest growth, however I can't see Wodonga to experience major CG in the next 5 years? The median sales price has been quite steady with expected drops/increases in the last 5 years.

    My main question really is to hear the opinion and thoughts of any PCer's in terms of Wodonga as a whole along with any areas to avoid or stick toward??

    Would be looking to spend under 350k in order to get a solid rental return.
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    Thanking you guys in advance!
    Johny
     
  2. Travelbug

    Travelbug Well-Known Member

    Joined:
    18th Jun, 2008
    Posts:
    582
    Location:
    Sydney
    I bought in Albury in 2008 $122k. All the signs looked good- good population projections, Bunnings and other big businesses moving to the area. Etc, etc.

    Sold in 2018. It was CF+ the whole time but not by much. Made a profit on the sale but nothing you wrote home about.
    Not worth it in my opinion. The CF is not huge and CG won't be either. You only need one maintenance issue a year and the CF is gone.
    A $350k property in Wodonga would be CF+? Rent would need to be over $400pw.
     
    Sackie and Terry_w like this.
  3. johnywusup

    johnywusup New Member

    Joined:
    19th Oct, 2019
    Posts:
    3
    Location:
    sydney
    Do you mind me asking if there was a specific reason you had chosen Albury over Wodonga? I am currently in that debate with myself as we speak :/

    I can see where you're coming from in regards to the CG and you're right in regards to just one maintenance issue (even minor) would result in bad CF.
     
  4. sumterrence

    sumterrence Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    444
    Location:
    Sydney
    The way I look at these cheapie CF+ properties are there to help me with my loan servicing. As I always pay P&i for all my loans. The more you pay down the debt the better your serviceability while you're still maintaining a healthy rental income (on paper at least). But like what above has mentioned that any maintenance could wipe out all your profits in a year.
     
  5. johnywusup

    johnywusup New Member

    Joined:
    19th Oct, 2019
    Posts:
    3
    Location:
    sydney
    Definitely Agree sumterrence! This would be my first IP, I have saved close to a 30% Deposit and am only still young (21) so am planning to build some equity for the future and currently dont have any major expenses (still under mum and dads roof) so thought this would be a good start for my property portfolio!
     
    Scott No Mates likes this.