What a lazy $700,000 can buy in Mildura: HTW residential
The Mildura local market continues to show some uncertainty with many agents still reporting reluctance by many vendors to put their homes on the market, according to the July Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
"This is more evident in the higher value range due to concerns that buyers may not yet be willing to pay a substantial amount in this time of uncertainty. Sales that are occurring indicate that values have held up well so far," the valuation firm said.
The report notes within the local market, $700,000 is still considered a higher value range property, however as the local market has increased steadily over recent times, this amount has started to become more common.
"$700,000 will purchase a large home located in an inner-city location in Mildura, or an above average standard dwelling in a modern subdivision on an allotment of up to 1,000 square metres.
"Within the inner city, it is possible at this price point to find an older, extensively renovated dwelling in a preferred location," the valuation firm said.
The report suggests a recent example is 26 Walnut Avenue, Mildura (pictured below), which sold in January 2020 for $680,000.
This property is in an inner-city location and includes an older home which has been recently renovated to a high standard and includes a pool.
Surrounding Mildura are a number of well- regarded smaller towns such as Gol Gol, Nichols Point and Irymple, which include good quality homes on larger allotments ranging from 2,000 to 6,000 square metres.
For around $700,000 it is possible to find modern homes built within the last ten to 15 years which include good ancillary improvements such as sheds, pools and extensive landscaping, the report noted.
Buyers at this price point tend to prefer locations that are within a ten-minute drive of Mildura and which are connected to filtered town water.
The report suggests a recent example is 297 Irymple Avenue, Nichols Point (pictured below), which sold in December 2019 for $716,000.
This property comprises a 2,576 square metre allotment improved with a circa 2005 built brick home featuring a pool, large shed and significant landscaping.
These higher value homes are suited to owner- occupiers as investors chase higher rental returns at a lower price point.
"For investors, our advice would be to purchase two smaller, but still modern dwellings for $350,000 each, three older dwellings in secondary locations for $200,000 each or even a large block of flats (however there are few such blocks of flats at this price point).
"All of these would provide a more attractive return, of around five to seven per cent as opposed to a high-quality single dwelling. Mildura’s vacancy rates are still very low, meaning that finding tenants is generally straightforward," the valuation firm said.