What attracts investors to Mildura?
Relatively good rental yields and a growing local population and economy is enticing investors to Mildura, according to property valuation firm Herron Todd White.
In a recent month in review report, HTW said investors made up about 20% of the Mildura market.
Yield was one of the key motivating factors.
“Gross yields of over 5% and up to 6% are currently achievable and even though buyers are looking for a combination of capital gain and yield, the yield is probably the aspect that influences the decision to buy in Mildura rather than a larger centre,” the report said.
The type of properties investors were buying was also analysed.
“In recent times, investors have mostly purchased modern 3- or 4-bedroom dwellings in the range of $250,000 to $350,000,” the report said.
“These properties are generally attractive to tenants and often offer potential to claim some depreciation deductions.”
It also found another appealing property type was unit complexes containing three to four units, which had an expected low risk of vacancy.
Burns & Co currently has a four-unit complex on the market, 1-4/14 Thirteenth St in Mildura, which offers an attractive return. http://burnsandco.com.au/properties/1-414-thirteenth-street-mildura
You can find Herron Todd White’s monthly reports here. https://www.htw.com.au/month-in-review/archives/