Any advice here would be great. I have just been looking at houses in country Victoria and they are very cheap in my opinion. When buying my 1st property I am more interested in Capital Growth and making money over say a 5-8 year period than making money off the rent. Would it be a good idea to buy a property in one of these areas that are going for between $60-80k, any experienced people here know what the capital growth would be like, if any? Thanks!
Hi Loungeact
trying to predict the capital gains of an area is very tricky. Better to focus on area that something is happening in that will boost the town. I haven’t lived in Victoria for 12 months so i’ve lost track a bit but for example Portland has huge potential with the new timber/pulp mill planned , this is a billion dollar development. Other areas like Hamilton with its mineral sand project and Mildura for the same reason plus the tourism and retirement market could be good options. Over the past 18 months I’ve sold all of my Victorian properties (except 3) so that shows you where i think the markets going- nowhere. Sure if your in for the long haul you should do ok. The Victoria Valuer General brings out a book on Victorian property prices it might be of interest to you.
What area were you looking at maybe i can help with some comments, i owned in Latrobe Valley, shepparton, and over the west like Stawell, horsham, ararat, hamilton etc.regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Thanks for the reply Westan! I am mostly keen on the West of Victoria, places such as Hamilton, Castlemain, Ballarat, Horsham, etc. Would like to purchase something for under $120,000. I’m not too into the ‘long haul’ but more so about 5-7 years maximum. Do you think I could profit much in this time frame in any of these areas. Looking at putting approx $25,000 deposit down. Would much prefer capital growth as well, would it be unrealistic to think one of these properties would double in value in say 7 years? Thanks!
Hi loungeact
will they double in 7 years ??? i’ve got no idea to be honest, anyone who says different is only Guessing. When we look at the past in Victoria prices have doubled in recent years but after very long periods of no or little growth. Melbourne as out performed most of Victoria over the long period (say 20 years), but over the past 3 years country Victoria has outperformed Melbourne. The reasons are, one Country areas have been playing catch up, two renewed emphesis on investing in R/E over the past 5 years. 3 Under the previous Government country areas did poorly and suffered financially (job losses etc) they have now rebounded.
OK moving forward, all of those cities are good areas
Hamilton, Mineral Sands Project, rich farming areas, New Pulp Mill near Portland (maybe 7 years away) will have benifits for Hamilton. Great little city with very good educational facilities, Uni campus’s in town- nurse training.
Ballarat- 3rd biggest city in Vic, close enough for people to commute to melbourne and attractive as a lifestyle option. the fast train will bring it closer (slightly). More people are choising to live in Ballarat because it is cheaper than Melbourne.
Castlemaine- a bit expensive but very tendy with new agers etc. Only 100km from the city.
Horsham- will benifit from the Mineral Sands project south at Douglas (this is a Billion dollar project by Illuka Reasources).
It seems like the heat has well and truely come out of the market and i was talking to John Hadley at First National in Horsham yesterday he said Investor interest had vanished, whereas they would get 10 emails a day when things were hot.
All this means be prepared to negotiate, as Robert Kiyosaki says “the profits made when you buy not when you sell”.regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
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