Hello,
Several people have been telling me that the Victorian town of Shepparton is a place where an investor can expect massive capital growth.
Is it a desirable investment location? What do people think?Thanks.
I would be more inclined to research Central QLD at this point in time personally.
I can see the rationale for investing in a 'mining town' where a housing shortage for mine workers etc is almost guaranteed to push up prices and rental yields however in my opinon, central QLD outside a mining town is a place with no beach and no large city and no reason for large masses of people to migrate there thus pushing up capital growth.
A large country town like Shepparton experiences natural growth from tree changers and people moving there from smaller towns that are losing amenities and from farmers with money who retire there.
Hi James theres beaches and a huge number of people set to move to the Gladstone area in the next few years, if you want I can send you some research material. Let me know.
I am talking to someone as I type this who has $180K to buy a house and he is thinking of Shepparton. Do people have any ideas or suggestions?
My research tells me that most of the money to be made in Gladstone property has already been made. Unless you are a developer with a "funnel" feeding you out of town investors that don't do their homework.
Apparently the mining/energy/construction companies have "wised-up" to inflated rentals and have found a better return on investment using the following options for workers (as opposed to having them rent in town);
– Fly-in/Fly-out from Capital cities (we all know this one)
– Fly-in/Fly-out Coach-in/Coach-out from surrounding smaller towns with lower rents
– Locking in long-term rental contracts before the boom at lower rates. (No real difference to locking in favourable energy contracts or exchange rates. These massive multinationals have alot of expertise with doing this.)Don't get me wrong, I think there is money to be made for the average investor, but I think it will be very, very hard to find a good long-term CG+/CF+ deal, even with a great buyers agent on their side.
Just my opinion. And I have looked hard at many of these mining/energy towns.
Back to Shepparton. I had a friend that purchased a great place there recently that is neutral or close to CF+ day one. They know the area very well as they have family there. This may have helped with buying in a better position. Also adds to confidence levels.
I have heard that the crime rate there is quite high, but have not verified this myself.
Shepparton is definately on my radar. Alongside other regional areas like Wagga, Mildura, Nowra, Toowoomba, Wangaratta, Orange, Moe, Bundaberg and a whole bunch more. "Boring", affordable areas that grow slowly and steadily with the occasional "boom".
I really want to "trust" mining boom towns, but I don't. I reckon I have missed some great growth not buying in them at the right time. But you can't get it right every time! Just get it right more often than not and keep it moving in the right direction! Up!
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