- BrendyParticipant@brendyJoin Date: 2010Post 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?GeraldineMMember@geraldinemJoin Date: 2010Post Count: 81
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,
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.
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.never too lateMember@never-too-lateJoin Date: 2009Post 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…..hewlett25Member@hewlett25Join Date: 2009Post 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!!!AfricandaisyParticipant@africandaisyJoin Date: 2010Post Count: 4Brendy 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.
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.units4meMember@units4meJoin Date: 2005Post 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.
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.
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.MicdParticipant@micdJoin Date: 2019Post Count: 1
Would anyone be interested in Developing in Mildura?