Hi guys. I am just starting out in the property game and am a bit nerves. I have been looking at houses in the 50k to 80k mark in Victoria and have found a lot in Ouyen. I am abit worried that this is not a good place to start. Does anyone have any opinions that they can share or any other areas in Victoria that they could recommend?
Best idea to get a considered response may be to give a bit more info.
Where is Ouyen?
How big is it?
Is it a single industry town?
How has the population (number and demographic) changed over the last few years?
etc, etc.
Of course the obvious question is why are there so many houses at that price available in that town? Who is bailing?
In other words, why does this town stack up for you?
If you’ve just searched for: ‘Properties in Vic between $50K and $80K’, you’re punting.
When I have bought regional properties, I have looked for towns that appear sound and then looked for properties within those towns.
But this is just the way I do things.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auOuyen is often the hottest place in Victoria. It’s always on the weather as the top today was 38 degrees at Ouyen.
Houses priced at 50-80k are priced at this much for a reason. If you decide to go head make sure you know what you’re doing. Investing in small rural towns like these require their own set of skills and due-diligences.Good Luck…G7
Hi Cama
i used it live in stawell in the Wimmera (sort of Ouyen way). The whole are has had large population loss (except Horsham and Stawell). According to department of Infrastructure reports i read a few years ago, when i was buying property in Victoria (pre 2003), the expectation was that places like Ouyen and Hopetoun would continue to decline. A few years ago (1990’s) these $50-80K homes were selling for $20-35k but no one wanted them ???
Now is there anything that can reverse the population decline ? Well i think there certainly is. In this part of Victoria there are huge deposits of Mineral Sands. At areas like Douglas near Hamilton work to remove it has already begun. It may be that Ouyen will also benifit when work begins to extract the mineral sands nearby. The Mineral sands deposits are in the Billions of dollars so we are talking about a huge deposit. I haven’t been following what has been happening in this part of the world as i’ve been investing in NZ and now the USA, so check out everything i mentioned to see if things are still the same.
all the best
westanWe find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
We have a property in Donald.
Unfortunately these Wimmera towns are experiencing substantial decline at present and unless there is a great turn around witht he drought there may be more to come.
Homes in these areas can be quite inexpensive to purchase and some are obtaining great returns.
You do need to be extremely cautious though as many are actually overpriced in reality because a number of “city investors” are turning their attentions to these areas purely on price.
Tenants are often unemployed or on fairly minimal wages and therefore there is limited scope for rental increases. There are a lot of homes in these areas which, in picture, appear quite good but upon physical inspection can require considerable repair/upgrade.
You need to be conscious of rental management also. With the property potentially being several hours from where you live it can be a chore/risk if you have to attend the property too often. Some rural agents are ceasing to manage rental properties, which can place even further burden on the landlord.
Sorry if my comments seem all doom and gloom but we are actually quite happy with our property and have good long-term tenants.
The key is to do your due dilligence very thoroughly and to go into it with your eyes wide open.
Good luck
Ray
To begin and not succeed is not to fail
To never try is to failThanks guys for your replies. It sounds to me that in this current climate it is not the best time to be buying in the far outer reaches of victoria. I am however having trouble trying to find somewhere to buy a good property for around this 100k mark. I just dont know where to start looking! I am trying to find somewhere in victoria to keep it close to where i live because this will be my first investment property. Does anyone have any ideas of a broad area that would fit into this price bracket? I know this is a broad question however i need somewhere to start. Thank you in advance.
hi cama
where do you live?
what is your goal in buying real estate
?by the way i think victoria got a bucket load of rain in the past 2 weeks (hopefully in ouyen also)
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
I live in the airport west area in Melbourne.
What am i trying to get out of owning my own investment property?
I am quite young and not that interested in working full time till i am 65. I have always been interested in property, i am what you can call a house proud person. I am looking to buy my first property to help me to continue to build my portfolio with the ultimate aim for semi retirement in my 40’s.Hi Cama
i think the best way to acheive what you want is to get properties that will not only put money in your pocket but go up over the long term.
Now can that be done ?
i don’t think the Ouyen property would achieve either of these goals over the next 5 years.
I purchased a lot of homes in Victoria and South Australia from 1997-2003, and then stopped and started selling. I wouldn’t be buying again to be honest, not yet anyway.
maybe you need to consider further afield, NZ can still offer way better investments than Australia. Once you are experienced as an investor i’d also consider the USA. I live in NZ at the moment and while i’m selling a few here there are still some deals around. Look at the NZ topic on this forum.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
You must be logged in to reply to this topic. If you don't have an account, you can register here.
