Melton Vic.

Hi all

Melton Vic.

Can anyone give me an idea as to why 3br houses 37k out of Melb. are only 165k.

Is this a bad area and if it is would it be comparable to woodreidge, Inala or Redfern??

The population is 45000+, train and major shops. Why is it so cheep?

Thanks
Wayne
 
Still i reckon its a good value if you dont want to be too much out of pocket.

As twitch said there is alot of land out there. The price increase in these areas tend to be more in line with the increase in cost of producing more subdivisible land and cost of construction which will track inflation rate most likely.

My 2cents.
 
Twitch - what a brilliant description!! Spot on!

Traveller - you'd be waiting for a loooong time for capital growth, IMHO. We sold a house in Melton in 1987 for $87,000 - today it would be flat out being worth $185,000. 'Tis the only house we have ever owned (over 4 states) which hasn't followed the old rule-of-thumb of 'doubling in value roughly every ten years'.

Cheers
LynnH
 
LynnH,

Your example in itself proves what i said my earlier thread that prices in these areas tend to track inflation rate. If you figure out inflation from '87 to now you will see thats what happened with your place in melton.

The reason i said its good value is bcoz many people cant afford property in better areas and it will be better to invest in melton then lets say a savings account as atleast you can take advantage of leverage, compounding and tax deductions and still not be too much out of pocket.

thanks.
 
Ha ha, *Island in a Sea of Land*, nice phrasing!

Don't forget that work has begun out at Melton for the new multi million dollar complex..Melton Harness Racing Centre and Entertainment Complex...to be the new (Metroploitan) home of Victorian Harness Racing.

Anticipating opening for business late 2008 and racing 2009.

It is a good solid industry (Harness Racing) here in Victoria, quite a few people in the Industry are settling their business's near, in, and around Melton....People that will create work and stimulate the local economy of Melton. So that will follow benefits to the Shire:

Capital Investment

Stimulation to business and employment growth (in an area of high population growth)

A World Class Complex...us Aussies should be so proud of ourselves, we do stuff soooo good!

It will all be around the corner of Western Highway and Ferris Road, the complex on 20 hectares and remaining 87 hectares is going to be commercially developed by the Harness Racing Victoria (additional revenue scheme) along with the Shire of Melton's *Toolern Master Plan*

So that means first steps in developing Toolern growth area, (to include schools, retail commercial centre, new rail station AND a regional park and new homes)

You reckon I am excited about this? :)

I am headed that way for investing, we have time on our side, and islands in a sea of land suit us because we want a lot of land...;) :)

Not everyones cup of tea, naturally, but suits us and our lives.
 
Ummm, forgot:

My trusty median houses prices 1994-2005 (reckon I should update a little :p ):

From Valuer General...

Melton South: 1994 $80,000.....2004 $175,000 = Change of: 119%

Melton West: 1994 $90,000....2004 $207,000 =Change of: 130%
 
our obsession

Thanks for the VG figures. Looks like valuations went no-where between 1987 and 1994 (from our sale and your figures above), but have followed the "doubled in 10 years" theme since then.

Mmm - might be worth another look!

One for the Melburnians - we were thinking the Werribee/ Wyndham area might have offered better prospects. Would you prefer Melton or Werribee?? Anyone??

Thanks
LynnH
 
Low demand.

Lots of supply.

Agree. Spot on David.

Figuring out 'where to buy' is really not that hard when you understand supply and demand.

37km west of Melbourne CBD? This is really gambling or speculating on capital growth, not investing.

GSJ
 
interesting, I live in Melbourne, and I wouldnt look at Melton, or Werribee for that matter. Friends of mine moved 'over the bridge' into Yarraville recently against my advice. The western sburbs generally lag in capital growth in Melbourne,
I agree with the earlier comments comparing Melton to Woodridge, except, there is a big old Ikea and shopping centre near Woodridge, and it is between Brisbane and the gold coast, whereas Melton is between Melbourne and ballarat. My last IP purchase was in Woodridge, and my first about 5 years ago was in Ballarat. Ballarat is a bit diferent as it is a regional town, not a satelite of Melbourne, and has period housing.
 
Would you prefer Melton or Werribee?? Anyone??

Thanks
LynnH

Neither. I wouldn't buy anywhere in the west suburbs of Melbourne other than the inner ones.

If you want cheap, I think Geelong is a much better option than Melton or Werribee. It's got employment, unis, it's bayside, has period houses, close to great beaches and (just) commutable to Melbourne.
 
Twitch and tobe

Thanks for your comments - obviously more research is needed, so it's back to the computer for me!!

Cheers
LynnH
 
I don't think Melton has much going for it beyond its proximity to Melbourne. If you want cheap, like Twitch says, Geelong is a much better option, also, Ballarat or Bendigo - all three are within commuting distance of Melb, all have Uni's, their own history, character etc... My only IP so far is in Ballarat, mainly coz I live here & know the place. There are still plenty of 3 brm places for sale in Ballarat well under $200K. One bdrm flats from around $120K. So between $120K & $200K there are plenty of options for 1-3 brm IP's that would rent out easily. My 2 brm unit has never sat vacant. I think you would find similar in Bendigo & Geelong may be a little more, but it is on the coast afterall:)
 
Thanks, Toon - will check things out in Ballarat, Bendigo and Geelong.

Thanks to all for your valued input! :)

Cheers
LynnH
 
Hi all,

I've lived in Melton for some time now, and have been watching the property market closely over the past 2 - 3 years now.
I have also studied Werribee, Ballarat, Hoppers and Sydenham.

I can say that from all the data I have collated and the things I've seen, I'd be happy to invest in up to 3 houses/units in Melton over the next 12 months.

Melton is great for rental yield, but not so good for Capital growth unless you have a keen eye for opportunity.

There are currently 4 - 5 units for sale near the Melton train station.
All are approx. 22 years old, 2 bedroom, and need that little reno's touch.
They're all going for $135 - $145,000.
The rentals there are $145 at minimum, and some are on $170 p/w
With a bit of TLC, rent can get as high as $175 p/w as there is a great shortage of rental properties in Melton at the moment.
If you do a search on www.realestate.com.au for rentals in Melton, you will see that by next week, half of them would have been rented out.
I haven't seen a unit near the station be on the vacant list for more than 3 weeks - no matter what the asking rent is.

If you do the math, you'll see that Melton (along with Ballarat and Geelong) is good for rental yield, especially the units as long as you complete your due diligence

If your looking for capital growth in Melton, I would recommend Westlake, Woodgrove Walk, or Central Melton. Most houses in the west are under 15 years old and there is no lateral movement.
We built a house 9 years ago for $160,000 and it was valued last month by RACV to be $310,000.
That's great news, but unfortunately the market value and the sale price are not always the same.
As Melton has had a HUGE sale boom (Over 200 listings on the books at any given time for the past 2 months), there is more of a market for buyers, leading to more powerful negotiations and less leverage for sellers.

As Melton is the 2nd largest growing suburb in Victoria (over the last 12 months), and with plans for an increased shopping mall, harness racing course and plans for 2 new estates, It's going to surpass Geelong and Ballarat.

Demographically, each suburb's population will happily fill the needs of rentals today, no matter what area you choose.
Choosing between, or comparing Melton to any other suburb really comes down to what you feel more comfortable with.
I'm sure if I had lived in Ballarat or Werribee I would be biased on those suburbs.

I'd try and get in on the areas that have houses going for around the $200k mark as they have room to grow. You could expect a $350k house to keep doubling over the next 20 year or so, but that would only be the "Market Value" and as stated above, people just wont pay that.

Put some investment options on paper and compare one $350k house to 2 $180k houses.

Some other good resources are found at:
http://www.propertyupdate.com.au/
http://www.propertyinvesting.com/
http://www.residex.com.au/index.php?content=top100&from=lhsmenu

P.S.
I just put an offer on an IP this morning for a house in Melton.
 
Have you thought of Sunbury Lynn? ...arghhh I can hear people now ...what the heck Kate :D

It has a university and all amenities like express train/supermarkets and a gorgeous winery and it's actually a beautiful township with some houses worth mega $$. Its also relatively closer to the city than alot of people think. My brother-in-law owns real estate agencies in both Melton & Subury and travels from Point Cook to both places every day and doesn't get stuck in traffic at all. From what he tells me the demand for rentals out strips actual places available in Sunbury.

I'd give Melton a miss - I personally think its a yuk area. I have a soft spot for Werribee because I spent alot of years growing up there, but I'd much prefer Sunbury - abit of country and still close enough to the city.

Kate
 
WOW...I want to win tattslotto or marry a VERY rich hubby :D Thats beautifu. I was there last weekend for the first time in about 12 years and I always thought it was a umm scummy area and was just amazed how beautiful it was and how people actually looked after their houses/ front lawns and its not a flat area...it has hills which I like.

Mmm maybe James Packer won't marry that Erica lass and may want a blonde Williamstown lass :D

Kate
 
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