Forums / Property Investing / Help Needed! / Is Mildura a good spot for an Investment property

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of BrendyBrendy
    Participant
    @brendy
    Join Date: 2010
    Post Count: 1

    Thinking of buying a IP in Mildura shortly. The city appears to have a lot going for it, new marina,  Large Solar infrastructure , Some mining going on in the district as well. Also there is consideration being given to a casino to be allowed there.

    There are properties that are positively geared in the 150-200,000 price range. Although there may not be a real lot of capital growth for the future.  Any ideas?

    Profile photo of GeraldineMGeraldineM
    Member
    @geraldinem
    Join Date: 2010
    Post Count: 81

    Hi Brendy.

    We have Mildura on our list too, and it is one of the places that Margaret Lomas has recommended and bought in herself.
    She targets larger rural centres with growth and good infrastructure that have positive (or near) cash flow.  I have also read that Mildura is somewhat underpriced compared to similar cities in Victoria. 

    Margaret Lomas also stresses the importance of having more than one primary source of income in an investment area. From my own viewpoint, I tend to see Mildura as being very reliant on the Murray River, and coming from SA, I worry about that from a long term perspective having seen some of the very real changes to the Coorong and Goolwa areas recently.  There will be more and more demands made on the Murray upstream as population increases, with unpredictable results for those further downstream.  Having said that I know a lot of people are investing there, but for me prices are not so cheap that I am persuaded to buy.

    All the best,
    G

    Profile photo of crustycrusty
    Participant
    @crusty
    Join Date: 2010
    Post Count: 127

    Gerladine          In what respect do you see Mildura as being reliant on the Murray river.  All places are reliant on their water source. Mildura has a big weir it is always full, even after a 10 year drought,  with the driest years in recorded history. It also has a pipe back up pipe from the wentworth weir pool. There is also plans for a solar powered desalination plant that  can be implemented if need be, plenty of underground water. recycling  could be adopted.                       In early  2008 the 7.30 report did a story saying Mildura would become a ghost town  because of a reduction in water allocations to irrigators  the economy was affected for a while, adjustment has taken place, and the place is thriving now. You cant get a park , the roads  and shops are bussier then ever, new shops and houses going up everywhere.   In march 2008, despite  what  educators/mentors/spruikers  and friends said  I bought one house, and  also some land , as  builders had no work and did not want to lose their employees  I got 2 houses built at almost cost price.  which  was just before the fhog. I have done very nicel y in Mildura                          Brendy  I  dont think it is to late to get some good buys.  Do you have anything specific in mind. I  would also suggest you may want to look at      buying an old house in Swan Hill and doing a Reno to get a CF+ as  it  is a very tight rental market . But Mildura is also starting to get tight . I am not up to date with  the market but a 4br rental in mildura may give a good return.

    Profile photo of crustycrusty
    Participant
    @crusty
    Join Date: 2010
    Post Count: 127

     Geraldine, another point Adelaide is  more reliant on the Murray River than mildura does that mean you shouldnot buy property in Adelaide.                             In fact only to-day a $700 million  9,000 km pipe line  begining at Wemen near Mildura was officially opened to secure water for the wimmera and mallee,  because of the security  of supply at Wemen The longest pipe line in the world.   Water can now also be sent from the Grampians to Wemen.

    Profile photo of never too latenever too late
    Member
    @never-too-late
    Join Date: 2009
    Post Count: 18

    have also been looking at Mildura with the current rainfall and the river rising,,,,can only be posetive for the area as once was…..

    Profile photo of hewlett25hewlett25
    Member
    @hewlett25
    Join Date: 2009
    Post Count: 15

    for what its worth Ive stumbled into Tassie.

    I bought 2x 2 bed units for $475k returns $700 nett (most of this is tax free) . Its under the nras scheme. Residex forecats capital growth of 6% while this may appear to be conservative Ive seen concistently 10% plus over the past 5 years.  There was a recent article in paper says hobart had highest capital growth of all capital cities for past decade.

    Im happy with starting rental return of 8%, ( rent is indexed to cpi, plus i get capital growth, brand new property so no maintenenace, good tenants cos its cheaper than any where else they can get by 20%, this alos improves tax losses but is still cf positive becuase the govt kindly gives the subsidy tax free and the fed govt is  guaranteeing the majority of the rent for 10 years

    ps hobart dam is 98% full so we dont have any issues with wate but peak hour is now 2 changes of traffic lites which is not good!!! 

    Profile photo of AfricandaisyAfricandaisy
    Participant
    @africandaisy
    Join Date: 2010
    Post Count: 4
    Brendy wrote:
    Thinking of buying a IP in Mildura shortly. The city appears to have a lot going for it, new marina,  Large Solar infrastructure , Some mining going on in the district as well. Also there is consideration being given to a casino to be allowed there.

    There are properties that are positively geared in the 150-200,000 price range. Although there may not be a real lot of capital growth for the future.  Any ideas?

     

    Just FYI, the company that was supposed to be doing the solar plant went bust in September 2009.  Obviously Mildura has many other things going for it but perhaps you shouldnt count on that one.

    Profile photo of crustycrusty
    Participant
    @crusty
    Join Date: 2010
    Post Count: 127

    Brendy and African daisy ,      Silex  has bought the solar thermal  tower project  from  tru energy . It  will spend  12 to 18 months  to prove develope and refine, the research it has bought,  with a  two megawatt pilot plant.  If it works a full scale 150 megawatt plant could go a head.          Tru energy  still proposes to  build a  solar plant  but it is a  bigger 180 MW plant but it will  use photovoltaic (PV) panels.   AGL propose a PV project 150MW,   INFIGEN propose a PV project of 195MW. These projects are some of the largest in the world.  I find it hard to beleive but  I heard a report that the casino will create 2,500 jobs.

    Profile photo of units4meunits4me
    Member
    @units4me
    Join Date: 2005
    Post Count: 90

    Don't discount the prospect of capital growth in the stronger regional cities. 

    They WILL grow at approx +/- the same rate as the big cities over time, only with better yield.  

    Profile photo of crustycrusty
    Participant
    @crusty
    Join Date: 2010
    Post Count: 127

    Clover I  am doing some quick maths correct me if  I am wrong  Purchase 325k + 5% acquisition costs =340K, Interest @  allow 7% ,could be higher soon, 24k+ rates body corp fees,insurance, management fees,etc 6k= total yearly costs at  least   30 k
    Income= 16640x 80%= 13,300 + 8000 from government=  21,300      a loss of  $9,000.  about  170 a week           Of course there is depreciation and tax deductions.     It may be ok as an investment but, not particularly good if you want  cash flow.  

    Profile photo of crustycrusty
    Participant
    @crusty
    Join Date: 2010
    Post Count: 127

         Clover I was hoping you would refute my figures and show how these units are cashflow positive.  It appears as if you are having trouble selling these units and have resorted to devious methods to market them.      You mention Aztec Devolpments  under every  topic, even  under finance but don t  mention who you got finance through to make these units +CF  you would  need to get finance at 5% to make these units CF+. It would be useful information for us all.    But you mention Aztec developments organized it.     Why is  this post posted under investing in Mildura  .      Has this Marina been approved by council my understanding is it hasnt.                                   

    Profile photo of MicdMicd
    Participant
    @micd
    Join Date: 2019
    Post Count: 1

    Would anyone be interested in Developing in Mildura?

Viewing 12 posts - 1 through 12 (of 12 total)

You must be logged in to reply to this topic.