Gross 6 percent yields in sub-$500,000 Mildura market: HTW
A pair of three bedroom homes can be purchased for around $500,000 in Mildura's suburbs of Irymple, Buronga and Gol Gol according to the property valuation firm, Herron Todd White.
HTW's residential market report for July said investing in these regions is sound, with the median house price in Mildura around $250,000.
"For this price it is possible to buy a 3-bedroom brick dwelling, probably with only 1-bathroom, that might now be 20 years old and with a dated appearance," HTW said.
"We suggest concentrating on one of the better parts of Mildura or the well regarded satellite towns of Irymple, Buronga or Gol Gol. These towns are within 8 kilometres of Mildura and generally track house values in Mildura. In one of these towns, $250,000 will most likely now be more than 20 years old and so some upgrading will eventually be required.
"For this reason, we recommend that investors ensure that, where possible, they hang on to some funds to allow a cosmetic upgrade at some future stage, and ideally prior to any future sale.
"Values in Mildura have remained stable over the past 12 months and while we aren’t forecasting any significant capital appreciation in the short term, we also expect that values will hold at least at their current levels. Some of the key local agricultural industries are enjoying stronger returns and this is expected to help underpin the local economy."
"In the past 12 months the balance of supply and demand for rental accommodation has evened out, however vacancy rates are still low and gross yields have stayed at around 6 percent."
Property Observer found a three bedroom home in Buronga (above) currently on the market with expectations between $190,000 and $209,000.