14 November, 2022 / Category: Blog
Renowned for its rolling green hills and mineral spas, Central Victoria is highly sought after by investors, holidaymakers and tree changers. When we talk to clients about Central Victoria, most people immediately think of Daylesford. However, Central Victoria is much more than Daylesford and understanding the different areas and what they offer is key to buying well in the region.
Like the Melbourne market, the Central Victorian property market has changed since the astronomical boom experienced during the pandemic. Properties are now staying on the market longer, allowing us to complete a more detailed due diligence process for our clients and allowing them time to make an informed and economically sound investment decision.
We spoke to Kathy Hodge, Infolio’s Central Victoria specialist and a Central Victorian resident, about the best places to buy in Central Victoria for investors, holidaymakers and tree-changers and why there is so much more to Central Victoria than Daylesford.
Suppose you’re looking to leave the hustle and bustle of the city behind in favour of the fresh air and space of Central Victoria. Some of our favourite areas for tree-changers are Castlemaine, Trentham, Malmsbury and Mount Macedon.
Castlemaine: There are some impressive lifestyle homes in Castlemaine, such as 29 Hoopers Road, Chewton, which recently sold for $1.1million (five minutes from Castlemain centre). The property rests in a hidden valley adjacent to the Castlemaine Diggings National Heritage Park, featuring four bedrooms on 2.15 acres.
Trentham: Located only 20 minutes from Daylesford, Trentham offers the best of Central Victoria’s spa country without Daylesford’s busyness and price tag. A property recently sold on the highly desired Cosmo Road for $943,000. It is an original miner’s cottage circa 1880 surrounded by a glorious English-themed cool climate garden spanning 892m2. Ideally located within walking distance of the amenities of the beautiful country town of Trentham.
Kyneton & Malmsbury: Kyneton and Malmsbury are both beautiful historic towns with easy access to Melbourne via train and road (just over an hour). These areas still offer good value for tree-changers. 90 Mollison Street, Malmsbury recently sold for $900,000, positioned on a sunny corner allotment in the heart of town and adjacent to the famous Botanical Gardens, the property has room for added value with all the right foundations.
Mount Macedon: the picturesque town of Mount Macedon has the added benefit of being less than an hour from Melbourne, allowing tree-changers in this area to commute via train or car to Melbourne for work and play. There are several lifestyle properties for sale in the area. The iconic 677 Mount Macedon Road sold recently. It is located in a well-regarded pocket of Mount Macedon is known for its grand, old-world mansions, exquisite English gardens, and cooler climate. Properties in this area are the ideal escape from hot Melbourne summers and a place to self-nurture during the cold winter months.
The ever-popular Daylesford saw significant growth during the COVID property boom. For clients looking for a weekender or holiday house for themselves, this area no longer shows the value it used to. In addition to high property prices, Daylesford is extremely busy on the weekends, impacting its iconic country town feel.
Savvy buyers are looking outside Daylesford to other more appealing areas in the spa country. The ‘French House’ is a recent sale in Trentham, one of our favourite properties in the area for its provincial style, space and A-grade location. We highly recommend Trentham as an alternative to Daylesford as it provides all the best aspects of Daylesford without the downsides.
There are two types of property investment opportunities in Central Victoria. While both successfully deliver strong returns, they achieve this through different styles.
The traditional investor: For the conventional investor, we usually suggest Bendigo as a great investment area. There are entry-level investments from about $400,000, and the area has high rental demand, allowing for solid returns.
This property in Kangaroo Flat has four bedrooms and two bathrooms, selling from $695,000 to $725,000. The forecast rental is $470 per week. If purchased for $690,000, it would give the investor an annual gross yield of 3.54%.
The Airbnb investor: One exception to our advice ‘look beyond Daylesford’ is for Airbnb and short-term rentals. With rising popularity from Melbournites, areas like Daylesford are becoming hot spots for short-term rentals with occupancy levels ranging from 80-90%. Investors are seeing excellent returns on one and two-bedroom apartments that present with a luxury feel. This property in Dalesford recently sold for $692,000. Based on the average gross rental rate in the area, at 80% occupancy, the investor would achieve an impressive yield of 11%.
If you’re considering buying in Central Victoria as a tree-changer, holiday maker or investor, then Kathy’s advice is this, “be savvy about your location choice and ensure you don’t get swept up in areas that grew significantly during COVID as the future capital growth won’t be as strong as the up-and-coming areas. Make sure you know the region inside out and understand the pros and cons of each area before you buy.”
Kathy prides herself on her local knowledge and is intimately familiar with the Central Victorian region. Contact Kathy to discuss your property goals and see how she can help you secure a suitable property in the right location and at the right price.