Regional Vic

Have invested in regional Australia but only Wimmera not Gippsland

I have worked and travelled around South Gippsland quite frequently although I have never invested there. I know the market moved a bit after the recent Melbourne peak and understand that it has came back now. Meaning it might be a good time to buy. I would stay well clear of Wonthaggi, Inverloch, Phillip Island areas as prices and rents have been massively inflated due to the ingress of construction workers for the Desal plant. They will all be leaving within the next 12 months.

The area has a good feel to it and there are many beautiful little towns throughout and can be a bit of a weekender buyer from Melbourne market. Latrobe Valley may well be a safer investment area due to the population size, local industry, transport links with Melbourne and good affordability.

That’s my point about weekend investors. Your dad has a holiday home down there and I am sure that he gets his personal ROI from it. But if you are looking at rental demand and yield etc, this is something different from what your dad may be considering. When you look at these markets in that light it may not be an investment that provides continual income that allows you to hold it long term.

As I said its a great area down there, but given the recent influx of construction workers and their families that the rental market has absorbed, this is a market that has enjoyed the exaggerated benefit of the massive influx of construction workers rental allowances. The fact that they are now withdrawing should say that one should wait to see what impact that massive withdrawal has on the relatively small local economy and the rental market in particular. I was involved with all of the additional workers there and ended up staying in the Silver Water resort which was fantastic but in the long term worked out to be a health hazard due to the exquisite tucker, red wine and views.

Latrobe Valley has coal and lots of it. Most of Melbourne’s power generation is done there and despite what any Greenie tells you, that will not stop. The brown coal that they have massive amounts of, is very much in the sights of India and the current Sate Govt has indicated a willingness to sell shed loads of this thermal coal to India. Morwell, Taralgon and to a lesser extent Moe should do well from this natural resource under their back yards.

I caught a show on Your Money Your Call by Margaret Loams. She was talking about Warragul and said that it wasn’t a good investment and would miss the growth for what its worth.

I think the Latrobe Valley is a good un.

Fair enough but do the numbers and compare it to other neighbouring areas before you say that. I said that I missed the boat in Emerald, Moranbah, Mt Isa, Pt Headland and Karrtah in 03 and I hadn’t. I still thought that I had though.

No worries I think if it stacks up, then it stacks up and the green grass is a distraction. Good luck.