Murray region offers 6% gross return opportunity for sub-$500,000 investors: HTW

Property investors with a "lazy" $500,000 to spend can buy "a substantially better than average house in Mildura" in the Murray outback region in northern Victoria, according to Herron Todd White’s latest market report, which examines investment opportunities under half a million. 

For investors looking to spend $500,000 on an investment property in this region HTW report recommends “instead buying two cheaper properties with a total value of up to $500,000.” 

With “gross rental returns at around 6% for residential property in the $180,000 to $300,000 bracket, but drop off to around 4% for properties valued at over $400,000,” said HTW valuers. 

Houses around the $180,000 to $300,000, provide opportunities to buy either a 1980s or early 1990s three to four bedroom home, sitting on 650 to 800 square metres. 

The other option “is to buy a newer three bedroom townhouse on a low maintenance lot of around 350 square metres, both will offer similar rental returns,” said HTW. 

“While much of the recent construction in Mildura has been aimed at the rental market, rather than owner-occupiers, demand for rental accommodation remains strong, and we foresee no dramatic increase in vacancy rates in the medium term.”