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Lets Talk About Shepparton In Regional Melbourne
Long term property investing is all about purchasing in well-diversified economies with strong potential to grow in terms of population, economy & infrastructure. Once such suburb in regional Melbourne is Shepparton...
Finding Investment Suburbs For Under 450K
Long term property investing is all about purchasing in well-diversified economies with strong potential to grow in terms of population, economy & infrastructure. One such suburb in regional Melbourne is Shepparton…
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
Shepparton | Melbourne | 3630 |
Regional Melbourne has flown under the radar for investors as there has been increasing mainstream coverage on Perth & Queensland. And while some/most investors are fleeing the Melbourne market due to higher holding costs it allows other investors to buy into the market. This is where Warren Buffet’s quote comes into mind “Be fearful when others are greedy, and be greedy when others are fearful.” Shepparton has seen strong rental growth in the past 12 months rising close to 15% according to SQM research. There are also a number of properties in Shepparton valued under $450,000 meaning that it is a buyers market to swoop in and grab the best deal. Yet the trends still don’t dictate capital growth in the short term future, but if you are willing to buy and hold Shepparton has great potential.
Quite A Few Properties Available Under 450K
Key Data Metrics
Metric | Actual | Trending |
|---|---|---|
Days On Market | 78 | Trending Up |
Stock On Market | 2.04% | Trending Up |
Vacancy Rate | 1.2% | Rising |
Current Population | 69,135 | - |
Online Interest | 44 | Flat |
Vendor Discounting | -5% | Flat |
Proportion Of Renters | 30% | Flat |
Location & Infrastructure
With a population of about 70,000, Shepparton is a regional city located in northern Victoria, Australia (approximately 181 kilometres north of Melbourne). Shepparton boasts a robust agricultural sector, particularly in fruit growing and dairying, contributing to its strong economic foundation. The city is well-connected via the Goulburn Valley Highway, ensuring road access to Melbourne and other regional centres, while V/Line rail services provide commuter and traveller connections. Shepparton is home to comprehensive amenities, including a major public hospital (Goulburn Valley Health), numerous schools, and higher education institutions like La Trobe University and Goulburn Ovens Institute of TAFE. Shepparton also has its own airport (Shepparton Aerodrome) located about 10 minute drive south of its CBD, great for accessibility!
Other Important Factors:
Shepparton has a high stock on market meaning that there is little to no price pressure on the market. This means that there will not be strong short term capital growth. The flip side to this equation is that as an investor/owner-occupier who you will have an abundant choice of purchasing an under-market value property.
The suburb has seen strong rental growth in the past 12 months and the trajectory appears to be rising. This is helping with yields in a time where interests rates are incredibly high relative to purchase price. That being said, the property you purchase will still mostly like be negatively geared depending on deposit size.
Shepparton has a diversified economy with occupations like professionals, labourers, technicians and managers occupying the market. Its main industries include agriculture, construction, real estate and transport meaning its economy is well diversified and primed for growth.
Nearby Major Projects:
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 | |
|---|---|
3 Oxford Court, Shepparton VIC 3630 | |
Purchase Price | $400,000 |
Stamp Duty | <$21,000 |
10% Deposit | $40,000 |
Expected Rental Price | 450-500/Week |
Expected Rental Yield | 5.00% |
*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 Shepparton
Opportunities to purchase under market value properties sub $450k.
Decent rental yields with strong rental growth in the past 12 months.
A number of infrastructure projects happening fostering job growth.
Good long term capital growth indicators (7+ years).
Easy access to airport & only 10 minutes to town centre.
Con’s Of Investing In Shepparton
Rising days on market & stock on market - no price pressure.
No foreseeable or indicators of short term capital price growth.
Higher vacancy rates compared to other investable suburbs.
Land tax & Covid-19 debt levy can impact rental yields.
Shepparton falls under a flood zone.
Ultimate Verdict
In the short term (1-3 years) Shepparton will not have strong capital growth however in the long term (7+ years) the suburb prices will grow strongly. Rental price growth and yield will get stronger as more time goes on and more people migrate towards Melbourne. Shepparton has great infrastructure of malls, station, schools, parks, airports and highways that make it accessible and a liveable area. If you are willing to buy and hold there are plenty of deals available in the suburb to purchase under market value as there is not strong demand yet. Ultimately, regional Melbourne is a tricky suburb to purchase in at the moment but if you are patient then you will surely reap the rewards.
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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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