Australians who are planning to get a taste of property investing this year without breaking the bank should consider some of the affordable locations in regional Victoria, according to a market watcher.
Bendigo and Latrobe Valley are two locations in the regional Victorian market that could be the "best bet" for buyers this 2020, said Terry Ryder, founder of Hotspotting.
“Regional Victoria has been the upstanding property market in Australia over the last two years. It's outperformed all the major capital cities, with some regional cities having double-digit annual growth to their median house prices," he told Herald Sun.
Ryder said the region's high rental yields and low vacancy rates, which are no longer achievable in Melbourne, should attract more investors.
The price upswing in regional Victoria started in Geelong and Ballarat and now flows into Bendigo and Latrobe Valley.
Bendigo, Ryder said, is one of the leading growth markets in Australia. Most areas in greater Bendigo have recorded annual gains, with Heathcote witnessing as much as 21% growth in median values and East Bendigo reporting a 16% increase.
Despite these, Bendigo still offers affordable options, particularly in the markets of Long Gully and California Gully, where median prices are below $290,000.
Bendigo’s vacancy rates hit as low as 0.5%, indicating a good sign for investors.
"There's almost nothing available for renters. So whenever a property is available, there's competition and that pushes up prices," he said.
The recent developments improving Bendigo’s accessibility and links to the capital city, including the $5bn Regional Rail Link, make it more attractive to investors, Ryde said.
Latrobe Valley, one of the most affordable parts of regional Victoria, also experiences low vacancy rates, especially in Traralgon and Moe.
With the approval of the undersea power cable linking Latrobe Valley to northwest Tasmania and the improvement in basic services and facilities, Ryder said the region would continue to remain desirable for investors.