Hi,
Just wondering what people think about investing in the latrobe valley.
Moe & Morwell is cheap and Traralgon is a lot dearer.
Traralgon is still experiencing a lot of growth, New retail & commercial buildings are still going up, and a lot of residential houses are still being built.
In the future the freeway is due to by pass Traralgon, not sure how this will effect property prices in the town.
Also the town is not a one industry town, but the power stations do employe a lot of local people.
With a lot of talk about coal fired power stations closing or not having a long term future, I'm not sure what to think.Does anybody have any thoughts on this they would like to share???
Regards,
Frosty 1Power stations in the LV will continue to generate power for decades to come. ETS is dead and alternative power options are unreliable and/or way too expensive. We are now hooked on cheap power.
Of all the major regional towns in Vic, Traralgon has the highest pop. growth and the highest incomes (source ABS 2006). Many other favourable stats also, so well worth a look.
Between us some friends and we own 9 properties in Morwell. Yields are very good even now. When we bought we were buying in the $80k bracket and so we have had some surprisingly good capital growth. Management is the big thing in both Moe and Morwell. A good manager is worth gold and a poor one can cost you a lot of time and money. You can still get houses on subdivisable blocks for $120k in Morwell. Morwell is running out of land because there are green belts specified for the power stations all around the town and so there are limited opportunities save for one site on the road to Traralgon to expand the town. We figure that the power stations will be there for a long time and that alternatives may well spring up there because of the transmission infrastructure. We will do some developments there in about 4 years but have stopped buying as we have our profits locked in. We’ve moved on to other places.
Moe is full of units and they probably represent good value only when you buy the block, thus allowing you to do some value adding.
Have looked at houses there but never been tempted. Traralgon is a different market much more like a regular rural town. Employment is underpinned by the two big power stations down the road.Australian Paper Pulp and Paper Manufacturing Mill at Maryvale, Monash University and the Central Gippsland Institute TAFE, the Australian Securities Commission's National Information Processing Centre are other industries in the area.
Hi Frosty
We're in the process of selling a property in Morwell with a vendor finance Instalment Contract. It's only been advertised for just over a week and yesterday we got a suitable buyer. We've had lots of calls for the property, so there's certainly a lot of interest in home buying in the area. As mentioned above, the lower price range of the area also helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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