All Topics / Help Needed! / Morwell, victoria

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  • Profile photo of sasharifsasharif
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    @sasharif
    Join Date: 2005
    Post Count: 48
    May 16, 2006 - 1:30 pm

    What do you guys think about entry level IP at Morwell? If it is cashflow neutral (almost), what is the prospect of long term growth? Any one with experience in that area?

    Thanks
    Sharif

    Sharif

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950
    May 16, 2006 - 2:47 pm

    Hi sharif
    I used to own 2 properties in morwell. bought in 1997 for 25K sold in 2003 for about 85K

    personally i wouldn’t buy in Morwell again.

    My experience was the standard of property management was poor, quality of tenants was poor.
    I don’t think you can expect much capital growth. The market has too many rental properties which will hold back the market.

    better to look elsewhere i think.

    regards westan

    USA deals, cash flow equity and capital growth all in one property.
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    Property Investing New Zealand Ltd
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    Profile photo of sasharifsasharif
    Participant
    @sasharif
    Join Date: 2005
    Post Count: 48
    May 17, 2006 - 4:31 am

    Thanks Westan for your valuable reply. Any one else with any more comments?

    Sharif

    Sharif

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425
    May 17, 2006 - 6:16 am

    I agree with Westan

    Morwell is overpriced and has to many rental properties.
    In a three year period the values lifted by around 33%, that lifted the 10 average from 1-2%. Thats ok if you brought 5 years ago, but not today. The chances of capital growth in the medium term are remote. However positive cashflow with growth is very hard to findf in Australia. Thats why people like Westan and I are investing off shore.

    Nigel Kibel

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