7 Of Victoria’s Most Affordable Suburbs in 2014, For Under $200,000

7 Of Victoria’s Most Affordable Suburbs in 2014, For Under $200,000

Your investment Property Magazine recently published an article listing a number of Victoria’s most affordable suburbs.

The suburbs featured in the article generally have a rental yield of between 5-10% and enable cash constrained investors to enter the market for under $200,000.

Unfortunately not all of us are earning $100,000 a year, which leaves us with a rather depressing reality where we can either:

  1. Not invest at all?
  2. Rely on our super?
  3. Hope to win the lottery?

As investors we can either accept this reality or look outside the square and find affordable markets, which still have to potential for capital growth.

Myth: Don’t most Australia’s make their money from investing in and around cities?

Real Estate Investar took a look at Australia’s most affordable and most populous suburbs and showed the majority of these types of markets are not good places to invest.

This said, hidden gems can be found in commuter markets (areas close to CBD’s) and regional centers (areas with strong local economies and service offerings).

With this in mind here are a number of Victoria’s most affordable real estate markets offering investment opportunities worth researching further:

Mildura, Victoria

  • Population: 30,655
  • Property prices: $130,000 to $500,000
  • Average annual capital growth since 2003: 3%
  • Proportion of renters: 38%
  • Cheapest 2 bedroom houses – Median price: $145,000
  • Average rent: $200
  • Rental yield: 7.4%

Due to it’s distance from the major city Mildura has had to develop its own services and amenities, including retail giants Coles, Woolworths, IGA and Harvey Norman.

Many properties in Mildura are on the market for as little as $140,000, which gives investors looking for cash flow and decent returns an opportunity to get into the market.

Shepparton, Victoria

  • Population: 14,275
  • Property prices: $160,000 to $400,000
  • Average annual capital growth since 2003: 2.6%
  • Proportion of renters: 38%
  • Cheapest 2 bedroom units – Median price: $175,000
  • Average rent: $200
  • Rental yield: 6%

Like many areas with low property prices Shepparton has something of a bad reputation depending on whom you’re speaking to.

If you’re looking for capital growth Shepparton is definitely not your first choice, but there are excellent ash flow opportunities going for rock bottom prices.

With current vacancy rates of 1% for units and 1.3% for houses and a local economy generally lacking significant market volatility Shepparton may suit the astute investor.

Moe, Victoria

  • Population: 8,755
  • Cheapest 2 bedroom houses – Median price: $136,000
  • Rental yield: 7.4%

While the auction clearance rate of 22% and 3% of all housing stock available in town being up for sale do not tell great signs for capital growth, they do tell signs for cashed up investors looking for cash flow properties from distressed sellers.

Other Victorian suburbs it maybe worth taking a look at:

Morwell, Victoria

  • Cheapest 2 bedroom units – Median price: $135,500
  • Rental yield: 6.52%

Moe, Victoria

  • Cheapest 2 bedroom houses – Median price: $136,000
  • Rental yield: 6.69%

Horsham, Victoria

  • Cheapest 2 bedroom units – Median price: $148,500
  • Rental yield: 6.65%

Ararat, Victoria

  • Cheapest 2 bedroom houses – Median price: $175,000
  • Rental yield: 5.94%
Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.