Gippsland offering 7% gross yields to property investors: HTW
The markets of Ninety Mile Beach, Wellington, Loch Sport, Paradise Beach, Golden Beach, The Honeysuckles and Seaspray remain quiet, according to Herron Todd White's November review.
The report suggests there is more interest in established improved properties over vacant land as the Bushfire Management Overlay has added costs to new dwellings.
But they advise there has been progress for some as the Loch Sport sewerage scheme is about 30% completed.
"Initial cost is $800 for a collection tank.
"Future development will attract a connection fees of about $10,000 (in lieu of the cost of an onsite envirosep system).
"This has not influenced vacant land sales which remain in the $40,000 to $60,000 range without water views."
The report suggested that the values of residential properties are similar for all five towns and that values have been static for several years now.
"The price of an average quality dwelling in good condition without views is in the range $170,000 to $220,000, above average is greater than $220,000.
"East Gippsland investor activity in remains low with low interest rates and reasonably good rental returns not seeming to stimulate the market."
It went on to state the best returns are found in the lower brackets, say the $200,000 to $275,000 range, where gross yields are in the 6% to 7% range.
"Yields are lower for higher value ranges where for a $350,000 investment, 5% would be typical.
"Agents are reporting only a few recent enquiries from investors looking to buy."
