Bendigo has a strong and diverse economy, with key industries including health care, education, retail, manufacturing, and tourism. Major employers in the region include the Bendigo and Adelaide Bank, Bendigo Health, the revamped Gov-Hub incorporating Local, State and Federal Government offices, Law Courts, Coliban Water, and of course, La Trobe University, which all contribute to the city’s low unemployment rate and stable economic growth.

Bendigo offers its residents a high quality of life with many amenities, services, and recreational facilities. The city boasts excellent schools, hospitals, shopping centres, public transport options, and a vibrant arts and cultural scene, with events such as the Bendigo Art Gallery and Bendigo Writers Festival. Bendigo also offers a range of leisure and recreational activities, including parks, gardens, and sports facilities, making it an attractive destination for families and young professionals alike.

Bendigo’s property market has experienced steady growth in recent years, with median house prices increasing by around 8% annually. This growth can be attributed to several factors, including strong population growth and increased investor activity.

Over the past decade, Bendigo’s property market has consistently outperformed the broader Victorian market, with median house prices increasing by over 100% between 2010 and 2020. This strong performance has been driven by factors such as population growth, economic stability, and increased demand for housing in the region. By investing in well-located, high-quality properties in Bendigo, investors can benefit from this strong capital growth potential and build wealth over the long term.

Rental properties in Bendigo typically offer attractive returns for investors, with average gross rental yields of around 4.5% for houses and 5% for units. Additionally, vacancy rates in Bendigo are generally low, currently sitting at around 1%, which is well below the statewide average of 2.5%. This strong rental demand and the city’s affordable property prices make Bendigo an attractive destination for property investors seeking high rental yields. This indication of strong demand for rental properties in the region provides a stable income stream for investors.

Several factors contribute to the strong demand for property in Bendigo, including population growth, economic stability, and housing affordability. Despite the property value growth in Bendigo, it remains a fantastic return on investment compared to most other Victorian population centres.

Bendigo is experiencing strong population growth, with the city’s population expected to reach 145,000 by 2036. This growth is being driven by both natural increase and net migration, as people are attracted to the region’s affordable housing, strong employment opportunities, and high quality of life.

Bendigo’s diverse economy and low unemployment rate contribute to the city’s economic stability, providing a strong foundation for property investment. The city’s key industries, including health care, education, and retail, continue to grow and create new employment opportunities, attracting more people to the region and driving demand for housing.

Compared to Melbourne and other major Australian cities, Bendigo offers relatively affordable housing options for both homebuyers and investors. The median house price in Bendigo is currently around $704,000. This affordability, combined with the city’s strong economic growth and high quality of life, makes Bendigo an attractive destination for property investors.

Bendigo offers a range of property types and investment opportunities, catering to various investor preferences and budgets. From traditional houses to modern apartments, there is something for everyone in Bendigo’s property market.

Houses

Houses are the most common property type in Bendigo, with various styles and price points available. Investors can choose from older, character-filled homes in established suburbs or opt for newer, more contemporary properties in developing areas. Houses in Bendigo typically offer strong capital growth potential and solid rental returns, making them a popular choice for investors.

Apartments and Units

Apartments and units are an increasingly popular choice for investors in Bendigo, particularly as more people are attracted to their convenience and low-maintenance lifestyle. Investors can find a range of apartment styles and sizes in Bendigo, from compact studio apartments to spacious, family-sized units. While apartments may not offer the same level of capital growth as houses, they can provide strong rental yields and lower entry costs for investors.

Townhouses and Villas

Townhouses and villas offer a middle ground between houses and apartments, providing investors with the benefits of both property types. These properties typically offer more space and privacy than apartments while still being relatively low maintenance and affordable. Investors can find a range of townhouses and villas in Bendigo, with many offering strong rental returns and capital growth potential.

There are several key benefits to investing in Bendigo’s property market, including strong capital growth potential, high rental yields, and a diverse range of investment opportunities.

Bendigo offers various property types and investment opportunities, catering to various investor preferences and budgets. From traditional houses to modern apartments, townhouses, and commercial properties, there is something for everyone in Bendigo’s property market. This diversity allows investors to build a balanced and diversified property portfolio, minimizing risk and maximizing returns.

Effective property management is one of the most important aspects of successful property investing. While managing your investment property yourself may save you property management fees, and it can also be time-consuming and require specialized knowledge and experience. Hiring a professional property manager can help you maximize your rental income, maintain your property, and ensure compliance with all relevant laws and regulations. The Lansell Homes team can assist you with finding a property management team to suit your needs.

Attracting and retaining good tenants is essential for the success of your investment property. A professional property manager can help you advertise your property, screen potential tenants, and conduct thorough reference and credit checks to ensure you find the best possible tenants for your property.

Keeping your investment property in good condition is essential for maintaining its value and attracting high-quality tenants. A property manager can help you manage routine maintenance tasks, such as cleaning, gardening, and pest control, and coordinate any necessary repairs or renovations.

Setting the right rent for your investment property is crucial for maximizing your rental income and ensuring your property remains competitive in the local market. A property manager can help you conduct regular rent reviews and adjust your rent accordingly based on market conditions and the features of your property. The Lansell Homes team can assist you with finding a property management team to suit your needs.

When choosing a mortgage for your investment property, it’s important to consider both the interest rate and the loan features that best suit your needs. Some investors may prefer a fixed-rate mortgage, which offers the certainty of a fixed interest rate for a specified period. In contrast, others may opt for a variable-rate mortgage, which allows for more repayment flexibility and potential savings if interest rates decrease. It’s important to seek professional advice and choose the right financing option for your circumstances and investment goals.

The loan-to-value ratio (LVR) is the percentage of the property’s value that you are borrowing. A higher LVR will result in higher interest rates and may require you to pay lenders’ mortgage insurance (LMI). It’s important to save a substantial deposit and aim for a lower LVR to maximise your borrowing power and minimise your interest costs.

Property investors in Bendigo can benefit from a range of tax deductions for property-related expenses, as well as potential negative gearing benefits and capital gains tax concessions. It’s important to seek professional tax advice to ensure you take advantage of all available tax benefits while minimising your tax risk.

While Bendigo’s property market offers many investment opportunities, risks and challenges must be considered. Some of the key risks include:

Market risk

The property market can be affected by factors such as economic conditions, interest rates, and government policies, which may impact property values and rental demand.

Liquidity risk

Property is a relatively illiquid asset, meaning it can take time to sell and convert to cash, which may be a challenge if you need to access your funds quickly.

Interest rate risk

Changes in interest rates can impact your mortgage repayments and overall cash flow, so it’s important to be prepared for potential rate increases.

Tenant risk

Finding and retaining reliable tenants is crucial for the success of your investment property, as vacancies and problem tenants can result in lost rental income and increased expenses.

Maintenance and repair costs

Unexpected maintenance and repair costs can be a significant financial burden, so budgeting for these expenses and maintaining a financial buffer to cope with any surprises is important. By being aware of and mitigating these risks, you can increase your chances of success in Bendigo’s property market.

Some risks and challenges associated with investing in Bendigo’s property market include market risk, liquidity risk, interest rate risk, tenant risk, and maintenance and repair costs.

You can minimize these risks and challenges by conducting thorough research, seeking professional advice, and adopting a long-term investment strategy focused on capital growth and strong rental yields.

The choice between investing in a house or an apartment in Bendigo depends on your preferences, budget, and investment goals. Houses typically offer stronger capital growth potential, while apartments can provide higher rental yields and lower entry costs.

A property manager can help you navigate the complex legal and regulatory requirements of owning and managing an investment property, ensuring your property remains compliant with all relevant legislation.

Some common mistakes to avoid when investing in Bendigo’s property market include buying the wrong property, not conducting thorough research, failing to plan for unexpected expenses, and not seeking professional advice.