Victoria’s cheapest houses on offer in Rainbow, Jeparit, Kaniva

Rainbow is Victoria’s cheapest spot for housing.

A two-pub town with a “romantic” name 400km northwest of Melbourne is the cheapest place to buy a house in Victoria.

A typical house in Rainbow is worth a touch above $81,000, according to property data firm CoreLogic.

Neighbouring Jeparit — renowned as the birthplace of Australia’s longest-serving prime minister, Robert Menzies — comes in second place with a $94,365 median house value.

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8 Eddy Street, Rainbow, sold for $60,000 last year.

31-33 Federal Street is up for grabs in Rainbow, for $189,000.

The towns both flank Lake Hindmarsh, have shared a footy club since a 1995 merger, and had a combined population of 1160 at the time of the latest census.

NorthWest Real Estate director John Hadley said COVID-19 had boosted demand for cheap homes in Rainbow and Jeparit, as buyers from Melbourne, Gippsland and across the state pursued tree changes and smaller mortgages.

“There aren’t a lot of houses for sale. But when they do come up, they’re sold pretty quickly,” he said.

“People buy on price — what we say is (you get) sausages for your dollar, or bang for your buck.”

Rainbow and Jeparit both flank Lake Hindmarsh.

4 John Street, Jeparit, could be yours for $90,000.

Jeparit is renowned as the birthplace of Sir Robert Menzies.

In Rainbow, Mr Hadley sold a five-bedroom, period-style house at 8 Eddy Street for just $60,000 and a two-bedroom “mock brick” abode at 4 Edward Street for $82,000 at the height of Melbourne’s August lockdown.

While the town at the gateway to the Mallee offered the lifestyle perks of being near Wyperfeld National Park and popular motor biking spot “the dry bed of Lake Albacutya”, the agent rated its isolation its “biggest advantage”.

“Rather than drive 70km to buy groceries (in larger Warracknabeal), residents tend to buy their groceries locally, which keeps the town’s economy strong,” he said.

Rainbow’s “romantic” name is reflected in rainbow murals throughout the town, most of which are on the central Federal Street.

Kaniva — the land of windmills and home of Hawthorn coach Alastair Clarkson — is also among the states cheapest spots for real estate. Picture: Mark Stewart

Clarkson’s home town, Kaniva, has a $103,527 median house value. Picture: Sarah Reed

Victoria’s 10 most affordable house markets are all in the northwest, also among them Hawthorn coach Alastair Clarkson’s home town Kaniva ($103,527 median value), Sea Lake ($104,658), Birchip ($105,454), Wycheproof ($108,619) and Ouyen ($111,060).

Real Estate Buyers Agents Association of Australia president Cate Bakos urged would-be buyers in these towns to tread carefully, noting “just because (a purchase) is cheap doesn’t mean it’s a good idea”.

Buyers can also bag a bargain home in Birchip. Picture: Dale Webster

58 Campbell Street, Birchip, is on the market with a $100,000 asking price.

31 Farrell Street, Ouyen, has a $123,000 asking price.

Investors should be wary of their limited capital growth prospects, and “think about how you’ll get a tenant if the vast majority of residents are owner occupiers and the town is a long way from major employers”.

“Regional areas that have tended to do well (out of COVID-19) have been within commuting distancing of Melbourne,” she said.

Ms Bakos did note buying in a cheap town could be “financially a very viable option” for owner occupiers seeking to cash in on a pricier home closer to Melbourne, top up their super and enjoy a tree change.

But anyone in that position should consider “whether they’ll feel dislocated from a major community, and friends and family”.

Numurkah, north of Shepparton, was the state’s cheapest unit market with a $164,334 median value, followed by Latrobe Valley trio Moe ($169,873), Newborough ($171,838) and Morwell ($180,580).

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Regional Victoria

Houses

1. Rainbow: $81,186 median

2. Jeparit: $94,365

3. Kaniva: $103,527

4. Sea Lake: $104,658

5. Birchip: $105,454

6. Wycheproof: $108,619