Buying IP in Bendigo - Golden Square & surrounds

I'm researching Bendigo,VIC for an Investment Property.

It seems good 5% rental return for low-value properties around $300K

What do people think of Bendigo?

Has anyone purchased in the area ?

Thanks
Paul

paulz said:

I'm researching Bendigo,VIC for an Investment Property.

It seems good 5% rental return for low-value properties around $300K

What do people think of Bendigo?

Has anyone purchased in the area ?

Thanks
Paul

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Welcomr to the forum Paulz, this thread might have some useful feedback about Bendigo and it's areas.

It says regional Victoria, but has Bendigo, Golden Square, Eaglehawk? and I think Kangaroo Flat in it.

Hi Paul,

I am from Melbourne and started buying and developing in Bendigo about 4 years ago - fast forward to today and I own and run Barry Plant Bendigo - i just love it up here.

Returns are great - generally 5.4% and up, there has been some solid capital growth over recent years and, in my opinion, some awesome growth to come.

Personally I have purchased in Golden Square and Flora Hill, although I buy larger (1 acre or more) development sites close to town and there are only so many of them so I bought more on what there was available rather than the specific suburb.

What are you looking for? Buy and Hold, Renovate, Develop?

Cheers

Ben

looking to buy for investment property, rent, potentially. develop later

paul

Paul feel free to call me tomorrow to discuss the different areas of Bendigo and which would suit your purposes best - phone number is in sig below.

Cheers

Ben

I would think 5% is a bit low.

I purchased (July this year) a sit and hold in Golden Square which worked out to be 6% yield on the purchase price.

Plus there is some very good depreciation as the property is only a year old.

The down side is no development potential but that is not my plan at the moment.

Property Hoarde said:

I would think 5% is a bit low.

I purchased (July this year) a sit and hold in Golden Square which worked out to be 6% yield on the purchase price.

Plus there is some very good depreciation as the property is only a year old.

The down side is no development potential but that is not my plan at the moment.

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Do you normally expect development potential for a property a year old?

evan1875 said:

Do you normally expect development potential for a property a year old?

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No, not at all. I just mentioned it to put things in context.

With development potential you might be happy with a little less of a yield.

I'd look at North Bendigo and California Gully if your looking for growth/development potential.
Both suburbs are relatively close to the CBD and the hospital and are generally big blocks (800sq+)

I am looking to buy our first IP in the next couple of months. We are looking for great capital growth properties for up to about $330,000, but we preferably less so we can move onto buying IP number two this by August.


So I'm thinking the way to go would be north bendigo, bendigo and ironbark triangle (avoiding around long gully) , as well as Flora Hill. California Gully has a good growth history, but it seems further out? . I'm thinking of getting a large block and subdividing. Either selling the lot off with plans, or just the blocks (with or without plans).


I know there is a lot of interest in golden Square, and that it does return a higher yield, but not as sure about the capital growth there.

Anyway, was feedback, thoughts?

(sent message to Belu, don't think it went through?)

I bought in Golden Square last year, 4br house on a quarter acre no easements. Its going to get 2 x villas built behind it in a couple of years time. In the meantime gross return is 6.4%'ish.