Melbourne Suburbs/Property

[melbdude26]

Dear Group,

I have some questions which I would like answered.

1. Which 5 Melbourne Suburbs do you think will experience the most capital growth over the next say 10-15 years?

My pick is: South Yarrra, Armadale, St Kilda East, Malvern and Caulfield.

2. Which 5 Melbourne Suburbs do you think would provide the best return on your investment (being the most amount of money when you include rent and capital gain)

My pick is: Glen Iris, Hawthorn, Port Melbourne, Northcote and St Kilda East

3. If you had to invest say $250,000 within the next 3 months what would you do?

4. If you had to invest $250,000 into a property in Melbourne which suburb would you put it in? (provide a few if you like)

Please provide reasons and explanations for your answers. The one's I provided above are based on gut feeling and nothing more.

Thank you very much.

[ponyfire]

Hi Melbdude26

We are new to the PI game and have $250k in equity we are going to invest in three IP's, 2 in Melb and 1 in Sydney.
We have decided to buy in Reservoir because:
Affordability at lower end of market
Proximity to city and public transport to city
Proximity to suburbs that have been and are still experiencing good CG
There are a lot of 'like' houses so it is easier to establish the market value for a house especially as we are operating from a distance.
Having said that we are planning to move closer to Melb next year and Reservoir will be within 1 hour of our new area.
Houses are selling in the area
There are a lot of parks, soemthing more important in the future
There is light industry nearby so there is a need for comfortable rentals
The people are nice when you chat in shops etc
The developers are moving in and some areas are beginning a definite uplift

We also like Frankston: again, affordability, and water proximity, better transport on the way but a bit far for us to get a handle on as yet.
Hillside: again, affordabililty, also Residex likes its chances but a bit wary as it has that 'western suburb' cache.

As I said, we are new, the more input the better,

Good Luck
Pony

[Monopoly]

We have decided to buy in Reservoir because:
Affordability at lower end of market
Proximity to city and public transport to city
Proximity to suburbs that have been and are still experiencing good CG
There are a lot of 'like' houses so it is easier to establish the market value for a house especially as we are operating from a distance.
Having said that we are planning to move closer to Melb next year and Reservoir will be within 1 hour of our new area.
Houses are selling in the area
There are a lot of parks, soemthing more important in the future
There is light industry nearby so there is a need for comfortable rentals
The people are nice when you chat in shops etc
The developers are moving in and some areas are beginning a definite uplift

We also like Frankston: again, affordability, and water proximity, better transport on the way but a bit far for us to get a handle on as yet.
Hillside: again, affordabililty, also Residex likes its chances but a bit wary as it has that 'western suburb' cache.

As I said, we are new, the more input the better,

Good Luck
PonyExcellent choices Ponyfire!!! ;)

As I have said MANY MANY times, Reservoir is NOT (or at least, is no longer) the "dive" so many ill-informed souls mistakenly think it to be; that indeed its socioeconomic culture is changing, as is that of Frankston (and yes, I'm including Frankston NORTH in that claim) but then, you needn't listen to me, I'm just biased. After all, I only lived in one, and invested in the other two (of the three mentioned in the article below) and can happily report ALL have had exceptional growth to date!!! Thus, I don't need to say anymore, except maybe, I'm smiling all the way to the bank!!! See -> :D

http://www.heraldsun.news.com.au/common/story_page/0,5478,16849305%255E2862,00.html

Melbdude26

I don't bother with "naming names". "hot tips" or "top 10"s anymore; people don't listen anyway (which I can deal with) but when they argue (also something I can appreciate) with nothing more than blind ignorance/ill-informed BS (errrr sorry... opinion) then I think to myself "@#$%!!! WHEN oh when will I ever learn to keep to my big mouth shut???" :rolleyes:

However, if you want a copy of "Mono's Hot n' Happenin' Burbs" list feel free to PM me and I'll gladly send it to you!!! :p Hell (if you ask me nicely enough) I might even shout you a coffee to help you digest/wash it down with!!! ;)

[bobby]

We are new to the PI game and have $250k in equity we are going to invest in three IP's, 2 in Melb and 1 in Sydney.

Hey Ponyfire,

Where abouts are you thinking of buying in Sydney???

Bobby

[ponyfire]

We are new to the PI game and have $250k in equity we are going to invest in three IP's, 2 in Melb and 1 in Sydney.

Hey Ponyfire,

Where abouts are you thinking of buying in Sydney???

Bobby

Hi Bobby
We have a buyers agent looking for us in Sydney, he works around St Mary's, Mt Druitt, Hebersham etc.

Being new we were not prepared to put all our eggs into the basket of our own judgement. I have friends in Sydney who are already wealthy following the residential PI plan, the agent is a part of their group. We can afford to buy in these areas and believe they will again experience considerable CG as the surrounding suburbs are improving.

This will also put an egg in a different city basket.

Cheers
Ponyfire

[ponyfire]

[QUOTE=Monopoly]Excellent choices Ponyfire!!! ;)

Thanks Jo
Actually replying to Melbdude's Q was a great exercise as it helped to crystallise my thoughts. I will continue to do this for myself in future.
It also galvanised me into following up on Hillside and I discovered that what we can afford are probably only units, not houses, therefor it is now off the list.

Cheers
Pony

[Monopoly]

It also galvanised me into following up on Hillside and I discovered that what we can afford are probably only units, not houses, therefor it is now off the list.

Cheers
PonyMay I ask why Hillside??? (Not that I have an issue with it, but you are talking "chalk and cheese" here between the two areas of interest, ie. Reservoir vs Hillside. :o In your PM you mentioned a budget figure, well here is one property that falls well below what you are prepared to spend:

http://www.realestate.com.au/cgi-bin/rsearch?a=o&s=vic&c=87029280&tm=1128911304&id=102655414&f=0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

Location is good, rental return I would guess to be fair based on proximity to amenities, and it has loads of potential, not to mention that you can negotiate a good price if you really put some effort into it. And hello......it's a four (not 2 or 3...but 4) bedroomed....HOUSE!!! ;) It has ALL that a tenant could want, transport access, major shopping complexes, schools/uni and its a gorgeous period home which can be dolled up to the max!!! I give up!!! :rolleyes:

Please note: I am not trying to talk you into Reservoir, and out of Hillside, I am just saying, Reservoir is not out of your anticipated price range, or that Hillside is not worth investing in (far from it, it too has potential, but there are downsides, one of which its proximity to the CBD is twice that of say Reservoir's).

Hope this helps, and please remember, this is my personal opinion only. Ultimately the choice has to come down to what is right for you, and your hip pocket.

Cheers,

Jo

[meggala]

I live in the western suburbs now but grew up in the south east. I'm feeling bullish about the prospects of the older western suburbs. ie deer park sunshine, etc there is fairly good public transport and great access to the city houses can stlll be bought for sub $200 if you know how to look the sellers in these area's tend to be a bit nieve which is a plus. previously I was in avondale heights and watched that grow from a suburb no one knew into and area of good growth etc. i dislike reservoir because of the lack of freeway access to the city.

as for
South Yarrra, Armadale, St Kilda East, Malvern and Caulfield.

these area's might have high capital growth but they will have high entrance prices and may be not the high percentage growth.

still its a tough game to play in this market.
meggala

[Monopoly]

i dislike reservoir because of the lack of freeway access to the city. :confused: Why would you need freeway access when you are only 13km from the CBD??? Hop on a tram (bus, or train) and you're there in less time than it would take you to sit through bumper to bumper freeway traffic!!! :o

As for: South Yarrra, Armadale, St Kilda East, Malvern and Caulfield. Most areas such as those mentioned, albeit continue to experience sustainably high growth, tend to have lower rental yields, and this is perhaps one of the biggest issues for anyone wanting cashflow over CG. It depends on what your reasons for investing are, if you want high CG then they are perfect choices, if you want higher rental yields, then there are better options out there.

Sunshine and Deer Park (older western suburbs) although cheaper alternative to many other areas, are sadly being overlooked for "newer" western suburbs ie. Melton, Wyndham Vale, Burnside and of course Caroline Springs. There are obvious reasons for this too, and in "one word" ("Delfin") it's not hard to see why. Ahhh...the power of the media; ain't it grand!!! :p

[saibaba]

How about investing in Altona and Mitcham town houses