Regional VIC

The Smartline Report – November Edition

The month in review: Regional VIC

By Herron Todd White
November 2016

Mildura
There are a number of people, often with connections in the building industry, who are active in splitting larger residential lots in the Mildura CBD area. Most of the easy corner sites have already been developed, with recent activity generally being in the construction of two or three townhouses on larger lots where an old house has been either demolished or relocated. The actual profit margin depends on how much labour can be supplied by the developer themselves. Often the developer will also choose to live in one of the new dwellings for a year or so to minimise capital gains tax liability. Demand is strongest for townhouses that include an outdoor living area and have parking for two cars.

There is currently good demand for modern, inner city townhouses, both for rent and to buy. This demand is from baby boomers looking to downsize and from young professionals. We expect this demand to continue. The recent completion of an $18 million riverfront development linking the Mildura CBD with the Murray River will enhance the attractiveness of living close to the CBD.

Renovation of older dwellings can also be financially rewarding and we often see young couples do this in order to build their equity. Recent examples have included the renovation of 1980s brick veneer dwellings, which are often sitting on relatively large lots and in good locations, but which are no longer appealing due to their dated appearance. Again, to make a decent return, the investor will need to do as much work as possible themselves and make sure they buy in a good location.

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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 – 2016. Australian Credit Licence Number 385325

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