Hi All,
Does anybody have any experience buying and/or renting IPs down in the “Gippsland corridor” in Victoria. (i.e Berwick down thru to Sale)
Thanks in advance[
]“Greed is good”
Gordon Gekko (Wall Street)Yes
What would you like to know?
David U
Hi David,
What sort of returns are you achieving?
What price point would you recommend entrying the the market down there?
And which town would you suggest? Closer to Melbourne the better? There is some sort of Uni down Gippsland way, maybe invest close to that?Hope you don’t mind all the questions,
Thank
“Greed is good”
Gordon Gekko (Wall Street)Hi Gordon
I only have 2 properties in the LaTrobe Valley, 1 in Morwell, purchase price $65k, rent $135pw. and 1 in Traralgon purchase price $80k rent $160p.w
Both purchases in Sept 02, both are worth approx $20k more than I bought for them. Have been tenanted from day 1 and are cash flow positive.
I no longer purchase in the Valley although there are still some good buys if you look thoroughly enough.
Local real estate agent in Morwell have a block of units with a 17% return; so deals are still out there. I haven’t looked into this particular property as the area is no longer of interest and I’m looking across the seas for much better returns.
The uni you refer to is perhaps in Churchill, next suburb to Morwell.
Definitely worth looking at the Valley as an entry point.
Morwell still has properties for $60-70k renting for approx. $130+pw. Traralgon entry price $85k + (if you’re lucky) renting for $140 pw +
Hope this tiny bit of info helps
Regards
David U
Hi Gordon,
I only have one ppty in the valley, at Traralgon, which was bought one month ago (for $80,000). I have spent the last month doing a reno incl. paint outside & inside, new bathroom, new kitchen, new laundry, new downpipes & gutters, etc. etc. spending about $7,000, and have just listed it for rent for $170 p.w. Apart from a down turn that is predicted, I feel Traralgon will keep it’s value more than some areas in the valley. (I hope)[
]I believe Traralgon is a more “preferred” town in the valley. Just be cautious about parts of Moe. It unfortunately has never recovered from Jadon Leiske’s murder I don’t think.
Other areas such as Berwick, Pakenham, are very expensive and you’d be EXTREMELY lucky to find anything that is cashflow +. They were great 5-6 years ago.
Churchill does have a good uni, but if you are hoping for capital gain down the track, it wouldn’t be my first choice. The agents were telling me about Rosedale recently, however, it is a much smaller town. I would be concerned about vacancy rates there. Sale I believe is worth a look at. I haven’t researched it yet, but my gut feeling is that it will become very popular soon!
A lot of investors have jumped in around the valley recently, so do your research!!
I am from West Gippsland, and have relatives etc in the valley.
Good luck, and hope I have helped a bit.
DelDavid U,
did you do any reno work on the properties? how many bedrooms?
i did buy at those places too, but i paid a little more for them compared to you. That was just in April.Hi David U,
I’m just curious about your search for cashflow positive properties overseas. Have you found any? What was the deal? and where?
Can you give us some ideas of what is available out there?Thanks,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi
Fullout: No renovations; great condition as is. Both are 3 bedroom.
Property Investor: Overseas as in NZ… Still researching
Cheers
David U
David U,
where can you find positive Properties with views to seaside like you said?
Moe, Morwell, Traralgon, Sale and Bairnsdale have quite similar populations (10-20 000).
Moe and Morwell seem to be cheaper than the other two. They also have the worst long-term population trends. Given this I am a bit surprised that David’s property has seen some growth. However the Valley does have low prices compared to other country areas, and maybe it’s playing catch-up.
Do people think that these towns will level off or continue their population decline?
Peter
Hi Peter
I think it was/is just the case of buying under value and the market catching up.
Cheers
David U
La Trobe Valley has been through some really hard times over the last ten years. In Morwell and Moe the power industry lost 1000’s of jobs leading to population declines. I think this trend is now reversing. Property prices were obviously effected. Added to this was the previous state Gov. (jeff’s) embarked on a policy of selling off Minisrty of housing homes, they sold hundred’s, prices crashed. I was fortunate enough to pick up a few for 26k to 29k in Mowell. Houses in Moe sold for 20K this is in 1997. Today the sell off of Gov. properties is largely over. My properties are worth about 85K. Is now a good time to invest in the valley is very difficult to tell. I’m not buying there, even though i am a buy and hold man, i am thinking of selling (because the price has risen so strongly up about 200% in 5 yrs)and purchasing elsewhere where i can get a better return. Having said all that the present Govn. is spending Millions to create Jobs etc in the Valley and prices could well go higher as the area is still cheap compared to nearly everywhere else.
regards
Westan
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