Make Your Move: Victoria’s top regional investor suburbs revealed

A series of unsung Geelong and Bendigo suburbs are regional Victoria’s best bets for investors looking to get the most bang for their buck. SEE THE TOP 20

A number of Geelong and Bendigo suburbs have been revealed as the top suburbs for investors. Liz Hughes has just purchased her first home in Whittington for its lower price point and growth potential. Picture: Jake Nowakowski

A series of unsung Geelong and Bendigo suburbs are regional Victoria’s best bets for investors looking to get the most bang for their buck.

Little-known Geelong suburb Thomson is the number one pick for houses, while Bendigo’s Golden Square is the top choice for units, according to new research.

The Herald Sun’s Make Your Move report, powered by PropTrack, has revealed the top 20 suburbs for investors in houses and units in regional Victoria.

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Three of the top 10 picks for houses are in Geelong, with Marshall and Whittington joining Thomson, offering an affordable entry point and promising growth potential.

Bendigo had six suburbs in the top 20 for houses: East Bendigo and White Hills, at positions two and three, and California Gully, Long Gully, Spring Gully and Jackass Flat.

The analysis weighed rental demand against yield and capital growth to land on its top choices for investors looking to the regional Victorian market.

PropTrack economist Angus Moore said Geelong and Bendigo had lifestyle perks that proved popular through the pandemic and the suburbs included were relatively more affordable, too.

“Looking at some of these Geelong and Bendigo suburbs, we’re seeing demand more than twice the rest of Victoria, which makes them attractive opportunities,” he said.

“You’ve got the benefit of living regionally, more affordable housing and more space, but you’re still within reasonable commuting distance of Melbourne if you have to do it a few times a week or even less.”

Thomson is the top investor suburb for houses, with 64 St Albans Rd for sale with a $790,000-$850,000 price guide.

In Bendigo, units in Golden Square will give investors the best bang for their buck. 9 Elm St is up for $395,000-$420,000.

Newcomb and Highton were Geelong’s best options for unit investment, but it was the Latrobe — Gippsland region with the most entrants in that top 20, at seven.

Maher Real Estate Bendigo principal Tom Maher said the investment boom in Bendigo followed suit from similar trends in Geelong and Ballarat areas and had been driven by low property prices with high return rates.

“There are a lot of opportunities in the area and large infrastructure projects, like new hospitals, which gives them confidence to invest,” he explained.

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“And interest rates were low for quite some time, so anyone who got in 18 months ago has already got a good return.”

Mr Maher said he was seeing more long-term investors who were holding onto their properties, especially with the high demand for rentals in the area.

In Geelong, first-home buyers and younger homeowners are dominant forces.

Belle Property Geelong agent Michael Baker said there was a noticeable influx of investors in the Geelong area, including “unbelievable” demand from young Melbourne buyers.

“These are good areas to invest into … they’re on that side of town, so it’s easy for Melburnians to get in and out, and also because of pricing, ” Mr Baker said of the trio of Geelong suburbs best placed for houses.

“Prices in these areas haven’t really taken off yet. That’s to come.”

East Bendigo also ranked highly for houses, such as 2A Solomon St, which is listed with a $575,000-$625,000 price guide.

The Geelong area also showed strong potential for units, with 1/11 Ivanhoe Crt, Newcomb, for sale with a $569,000-$619,000 price guide.

Mr Baker said Geelong was particularly attractive to first-home buyers, as the price point provided a great opportunity to break into the market, either as owner-occupiers or through rentvesting while remaining in Melbourne.

Buxton East Geelong’s Jarrod Leonard agreed, adding that alongside an entry point to the market, buyers also benefited from the amenities of a “premium suburb” they bordered.

“For rental homes, the difference between the two is negligible,” he said.

“So Thomson, compared to East Geelong … from a rental point of view there is not a major amount of difference when it comes to the rental amount, but when you look at the (yield) percentage, it’s substantial.”

Advantage Property Consulting director Frank Valentic said the market had become more balanced post-lockdowns but rental providers had the upper hand.

“The market has improved and the demand is there,” he said

He said properties in these regional areas, where “they would stay on the market for 365 days”, were now being snapped up quickly for their affordability and higher rental returns.

There was also the potential for a dual income, with many investors purchasing a regional holiday home to occupy occasionally, and rent as short-stay for the remainder of the year.

Also in Bendigo, 73 Kennewell St, White Hills is for sale for $760,000-$810,000.

And in Geelong, 27 Krisanway Drive, Marshall, is up for $685,000-$725,000.

Mr Moore said the affordability of regional areas made them strong options for first-home buyers looking for investment potential, too, or “rentvestors”.

“Not all investors will be looking for the same thing, some will prioritise capital gains, some rental yield and for some price point might matter more, and I think that’s relevant for rentvestors, looking for more affordable options to get into the market,” he said.

“And that’s where regional opportunities, as well as interstate, may be more attractive because they come with lower price points than Melbourne more broadly. When you’re looking to invest, unlike owner occupy, you’re not restricted to just where you live.”

Mr Moore stressed investors should buy in a suburb they were familiar with.

Queensland and South Australian suburbs crowned the national list of PropTrack’s top investment picks.

FIRST HOME – BIG INVESTMENT

Liz Hughes at her new home in Whittington. Picture: Jake Nowakowski

Liz Hughes, 29, has just bought her first home in Whittington after renting by herself in nearby St Albans Park.

The three-bedroom house at 9 Koala Court allowed Ms Hughes to break into the market at a reasonable price.

“I wanted to stay in the area and Whittington was just that little bit more affordable, but still has good pockets where it’s nice and quiet,” she said.

Ms Hughes hopes to renovate her Whittington home over the years to increase its value.

Ms Hughes added that she hoped to complete “a bit of cosmetic work” at the home to increase its value, and would potentially buy a bigger block a bit further away in the future — either keeping her Whittington home as an investment or selling for a likely higher price.

The suburb came in at No. 7 in PropTrack’s data for the top regional investor suburbs, with its median sale price rising by 26 per cent in the past 12 months to reach $550,000.

It also has a median rental yield of 3.8 per cent.

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