Regional VIC

The Smartline Report – July Edition

The month in review: Regional VIC

By Herron Todd White
July 2015

Mildura

With the median house price in Mildura around $275,000, buyers with $500,000 to spend have the option to buy a well above average standard home. For $500,000, buyers will be able to acquire either an upmarket 4-bedroom home, most likely with a swimming pool and good external improvements and located in one of the better areas within Mildura, or a large home on a rural residential lot (2,000 square metres to 4,000 square metres) in a preferred area surrounding Mildura.

Interestingly, and presumably in response to improved confidence and reduced interest rates, we have seen a higher number of transactions in the $475,000 to $525,000 bracket during the first half of 2015 compared to the same period in 2014.

For investors with this sum available, it is still possible to buy two reasonable standard 3-bedroom brick veneer homes in Mildura, which while being a bit dated will still be quite rentable. Typical gross rental returns at this price bracket will be in the order of 6%. Buyers at this price point will need to factor in some upgrading over the next few years, but on current indications will have no trouble finding tenants.

Another option which appeals to many investors is the purchase of an entire block of three or four units. A recent example is the sale of four units at 31 Chaffey Avenue, Mildura. These units were built around 1980, are of double brick construction and presently returning around $32,500 gross rent per annum. The block of units sold for $492,000 within two weeks of being listed.

Echuca

Five hundred thousand dollars give or take 5% buys an above average 4-bedroom, 2-bathroom house in most of the modern residential developments in Echuca/Moama, typically with an inground pool or good quality colourbond shed. Alternatively, buyers looking a bit further out might be able to secure a smaller or slightly older (circa 1990s) dwelling in a rural residential setting. This sum of money is also likely to secure a very high quality centrally located townhouse in Echuca or Moama.

Gippsland

WELLINGTON AND LATROBE REGIONS

In the Traralgon area, $500,000 will buy a modern 4-bedroom home in a superior, close-in residential estate, or an older style, rural residential property on the outskirts of town. Older style properties in prime locations will generally sell for $400,000 to $500,000, especially if they have been partly renovated or have subdivision potential.

Sales of single dwellings in the Morwell and Moe/ Newborough areas over $500,000 are rare and generally represent large, high quality dwellings on large residential allotments or well established rural residential properties.

In Morwell you would be able to purchase four circa 1960s, commission style homes bringing a 7.5% to 8% rental return.

EAST GIPPSLAND

Standard residential properties in East Gippsland are generally well below the half million dollar level but you can spend that amount on a quality new build or a well renovated period dwelling in a good spot, although these are rare.

Moving out of town in the Bairnsdale area, $500,000 will get you a rural residential property with a standard build of a circa 2000s, 4-bedroom, single level dwelling with a shed on up to one hectare of land. Older dwellings come with more land (up to 15 hectares) and you can get a pool, more shedding and better views for the same money.Properties extending out into the Nicholson area are of the circa 1990s era and will be set up for horses with basic stables, a number of paddocks and are close enough to schools for family appeal and should be comfortably within the budget.

If you are looking to be closer to water you can get a modern house in the Paynesville area with a lake view, but not canal frontage, for around $500,000.

BAW BAW (WARRAGUL/DROUIN)

Warragul and Drouin continue to provide affordable living with properties around the $500,000 price range being readily available. At this price a typical property of 1,000 to 4,000 square metres located on the fringes of the cities will comprise a modern house on a slightly to moderately sloped lot. Modern houses for $500,000 on 500 to 700 square metres can be found closer to the CBDs.

Alternatively, older style dwellings in prime locations of Warragul also sell in the $500,000 range, together with larger, high end townhouses close to the main streets.

SOUTH GIPPSLAND

In the coastal regions of Inverloch and Phillip Island properties in this price range comprise older properties with potential or restricted views or located in close proximity to the foreshore. There have been a few sales on Surf Parade, Inverloch for $485,000 to $550,000.

Phillip Island had a 644 square metre vacant block in Sunderland Bay with unrestricted water views sell for $535,000.

The main market for properties at this price in Cowes and surrounding suburbs are typically modern properties on lots under 1,000 square metres with no views and located some distance from the beach and CBDs.

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.