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Another Melbourne Suburb I Am Keeping A Close Eye On
Melbourne’s property prices have remained stagnant throughout the year however for investors will to buy and hold for the long term there are an abundant amount of opportunities, one such location is Golden Square.
Finding Investment Suburbs For Under 450K
Melbourne’s property prices have remained stagnant throughout the year however for investors will to buy and hold for the long term there are an abundant amount of opportunities, one such location is Golden Square.
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
Golden Square | Melbourne | 3555 |
Located southwest of major regional centre Bendigo, Golden Square has many opportunities for investors to snap up properties for $450-500k. Melbourne is currently under scrutiny from investors for tighter rental laws and higher holding costs however this presents opportunities for investors willing to bare their costs for capital growth. The micro and macro data factors line up indicating the suburbs in Bendigo and specifically Golden square will have strong medium to long term growth (5-15 years). However it is important to understand that you as an investor will most likely lose money in the short term due to poor rental yields compared to other suburbs throughout the state.
Key Data Metrics
Metric | Actual | Trending |
|---|---|---|
Days On Market | 61 | Flat |
Stock On Market | 1.45% | Flat |
Vacancy Rate | 1.02% | Flat |
Current Population | 9,346 | - |
Online Interest | 93 | Trending Up |
Vendor Discounting | -6% | Flat |
Proportion Of Renters | 30% | Flat |
Location & Infrastructure
Situated approximately 3 kilometres southwest of the Bendigo, Golden Square is well-equipped with a range of amenities that cater to its residents' needs. The suburb boasts several shopping centres, such as the Golden Square Shopping Centre and the Lansell Square Shopping Centre, which offer a variety of retail stores, supermarkets, and dining options. For daily essentials, residents have access to local convenience stores, bakeries, and specialty shops. Educational facilities include Golden Square Primary School and nearby Bendigo Senior Secondary College, ensuring education within close proximity. Health services are readily available with medical clinics and pharmacies in the area, and the Bendigo Health hospital just a short drive away. Recreational amenities are abundant, with the Golden Square Swimming Pool, numerous parks, and sports clubs providing ample opportunities for leisure and fitness activities.
Other Important Factors:
Bendigo is a well diversified economy with multiple industries supplying the economy. It has multiple ongoing development projects with a completed major airport upgrade to supply the local economy. Golden square has many professional workers, trades workers and labourers.
Vacancy rates are low sitting at around 1%, meaning demand will high and with almost no developable land this should not change anytime in the near future. This will foster further rental growth and stronger rental yields.
Why Buy Under 450K?
The reason I started I looking for properties under $450,000 is because it takes forever to save enough cash for the average worker. With about $45,000 (10% Deposit) and paying Lenders Mortgage Insurance (LMI) you can enter the market today in a regional location. And when you pick the right property in the right location you make some serious equity!
Example Property:
Metric | |
|---|---|
11 Rowe Street, Golden Square VIC 3555 | |
Purchase Price | $475,000 |
Stamp Duty | <$25,000 |
10% Deposit | $50,0000 |
Expected Rental Price | 450/Week |
Expected Rental Yield | ~5% |
*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.
Pro’s Of Investing In Golden Square
Bendigo is a well diversified economy built on multiple industries.
Almost no developable land supply in the area → Strong Demand.
Days on market is average however supply is low → Strong Demand.
Con’s Of Investing In Golden Square
Poor rental yields compared to other states.
Tighter rental laws with high stamp duty costs (Melbourne).
Ultimate Verdict
Despite poor rental yields Golden square provides opportunities to purchase an investment grade property for $450-500k. Despite not having strong capital growth in the past year over a 7-10 year period the suburb will have strong capital growth. Days on market, stock on market and vacancy rate are all at acceptable levels. Golden Square has strong infrastructure like malls, station, schools, parks, airports and highways that make it accessible and a liveable area. As a shrewd investors its important to run the numbers and ensure you can hold this property in the short term to reap the rewards in the long term.
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Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.
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