Investors cash in on skyrocketing Warrnambool house prices

Roberts One Real Estate principal Daniel Roberts said people were making the most of the sharp spike in property prices over the past couple of years.

"People have been taking the opportunity to cash out on some of their investment properties," he said.

"Property owners have been taking advantage of the market being so high."

New data reveals the number of investors who paid land tax on Warrnambool properties decreased in 2021.

In 2021, 3546 Warrnambool properties were subject to the state government's land tax, a decrease from 3686 in 2020.

Landowners do not pay the tax for primary residences, but do for investment properties, holiday houses, commercial properties or even vacant land. Only property portfolios worth more than $300,000 are taxed.

Mr Roberts said in addition to that some investors were selling their primary residence in a city and relocating to their property in Warrnambool.

However, Mr Roberts said he believed Warrnambool properties were a great investment.

"Warrnambool is still very good value compared to the rest of Victoria," he said.

"You can buy a property for under half a million and rent it out for $500.

"The Warrnambool market is very strong and I believe it will remain strong for quite some time.

"If you're interested in buying an investment property in Warrnambool, it's a very good time to do so."

Mr Roberts said he believed investors would see more return on an investment property than in other regional areas such as Ballarat or Geelong.

Brian O'Halloran and Co director Brian Hancock said he too had witnessed a "big sell off" of investment properties in the city.

"There have been concerns with some of the changes to the tenancies act and some owners are taking advantage of the prices that can be achieved," Mr Hancock said.

He said demand remained strong from investors looking to buy a property in the city.

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