Melton Vic.

[Peter 14.7]

Hello All

FYI a while back it was reported a new road that would link Melton to Avalon and Tullamarine Airport was mooted.

Here is the latest.

http://www.theage.com.au/national/u...new-outer-ring-road-20081126-6is4.html?page=1

Of note is the suggestion that urban sprawl in the west of Melb is to be reviewed. This could be anti-Melton as it would open up vast rural areas such as near Sunbury, Diggers Rest to redevelope.

FYI Peter

 

[mystery]

Hello All

FYI a while back it was reported a new road that would link Melton to Avalon and Tullamarine Airport was mooted.

Here is the latest.

http://www.theage.com.au/national/u...new-outer-ring-road-20081126-6is4.html?page=1

Of note is the suggestion that urban sprawl in the west of Melb is to be reviewed. This could be anti-Melton as it would open up vast rural areas such as near Sunbury, Diggers Rest to redevelope.

FYI Peter

Peter,

You'd imagine that the proposed $15 Billion re-development of Melton (Toolern) by the local and State Govt will continue as the Govt has already indicated that they see Melton as a major growth centre. Plus Melton council have plans to develop Melton as a major commercial centre don't they?

It will be interesting to see what eventuates.

Thanks for the update

Martin ....

 

[virgo]

Cash Flow Positive

Hiya

Holy cow! Purchased just 12 months ago and my IP in Melton West is almost cf neutral...and with that tempting Westpac 4.99% will make it cash flow positive!

So far tenant has been a breeze, single mum and steady with her payments.

And looking at similar properties for sale, might start to revalue and pull some equity out for IP2.

Slow and steady as she goes......

A happy christmas indeed.

jennifer

 

[Suraj]

Hi Virgo,
Could you pls explain how did your IP worked to gat nearly CF neutral?
It looked like you bought a very good deal. I bought an IP 6 months b4, in $200k and only get 220 per week. It is 17 yrs old.
Suraj

 

[kvellimalai]

Advice on Tarneit please

Hi Friends, i went through the thread and would like to get some clarification.
I have my IPs in Sydney and now i am looking for a new one on VIC and am approached by Broker (not sure whether i can mention the name). He has given me a deal as follows a brand new house in Tarneit for 340K with 450-600SQM Land size with a return of around 340Per week as a rent.

1. As some one mentioned (sorry for not mentioning the name) in the thread the number of properties for sale is allways around 200+. This means if you buys a house you can get a very good bargain. But if we want to sell we will be in very bad shape as you need to compete with the 200+.
2. What about the rental return in Tarneit for a brand new 4bed + house?
3. I check with RPdata and it says only 13% of the population is renting. This means as an Investor are we not limiting our self to very narrow percentage?

I need some advice from the experts about the deal. After seeing the number of houses for sale and good number of properties for rent i am bit concerned.

Please advice......

Regards
Velli

 

[Peter 14.7]

Peter,

You'd imagine that the proposed $15 Billion re-development of Melton (Toolern) by the local and State Govt will continue as the Govt has already indicated that they see Melton as a major growth centre. Plus Melton council have plans to develop Melton as a major commercial centre don't they?

It will be interesting to see what eventuates.

Thanks for the update

Martin ....

True.

I see the $15BN redevelopent as long term.

I will be the making of Melton but it is 10 years away.

Once a major new industry like Solar Panel Manufacturer or and existing deep pocket player like Toyota decides to set up there then you will have the flow on effect.

And this will happen because West Melb is heavily industrial and good land is in short supply.

Meloton has number of advantages: it is on a freeway, with rail way links and between two airports, Tullamarine and Avalon. It is also flat, flat as a tack!. Minimal flood issue and minimal environmental issues. All pasture so no trees to save, etc.. unlike were I live.

North is craigieburn and that is filling up and getting hilly and very residential

North West is Sunbury and that has a huge gorge to get over for better roads and rail. The rail is overloaded with passenger and grain already. And the airport restricts development.

West is Melton, see above.

East is full up, hilly and to valuable to use as large scale industrial.

Ditto for South West

Peter

 

[Cherry Pro]

Advice on Tarneit

Hi Kvellimalai

At about $340 per week on a $340k outlay, your returns will be around
5% ...being a new property, you will get good depreciation benefits. Obviously, the bigger the block ....600 sq metres + will be better.

Once you do a comparison with what is available in the market as opposed
to what the broker is offering, it should be easy to decide.

I would steer clear of any rental guarantees.

Do a search on this site for Tarneit / Hoppers Crossing and see what is thrown up.

Cheers and good luck !

 

[Cherry Pro]

Cashflow + in Melton

Hi Virgo,
Could you pls explain how did your IP worked to gat nearly CF neutral?
It looked like you bought a very good deal. I bought an IP 6 months b4, in $200k and only get 220 per week. It is 17 yrs old.
Suraj

Hi Suraj

If Jennifer (Virgo) bought a year ago and paid $215k and receives rent of
$275 per week, the return is about 6.6%. With Westpac's new 3 year fixed rate of 5% ..this will make it cash flow positive. Well done, Jennifer !

I bought in June 2007 and my return is also about the 6.6% (18 year old
property, 4 bed + 2 bath on quarter acre block) except that I locked in my loan with St George at 7.15% ..so some time for it to get to neutral.

Suraj ...may be time for you to review your rent.

Cheers

 

[virgo]

Melton West

Hi Suraj

Yes, i did buy my IP in the low 200s and my rental is pretty good; $260 per week. Did you have a depreciation schedule done? Hubby is also on very high tax rates too, so that helps...



Hey, Cherry Pro, i remember U from some of your posts...are you planning to buy in Melbourne again? Did you revalue your IP in Melton West?

Cheers
jennifer

 

[Peter 14.7]

More Melton News

FYI Peter

http://www.news.com.au/heraldsun/story/0,21985,24768353-661,00.html

A BILLION dollar upgrade to the Melton train line and a new station at Caroline Springs are part of the State Government's new transport plan.(announced today)

The train line is scheduled for electrification in 2016, but commuters will benefit earlier than that from a doubling of V/Line trains.

The Sydenham line will be electrified to Sunbury by 2012 which will free up extra trains for the Ballarat line.

 

[virgo]

Vic transport plans

Hi Peter 14.7

Not a local myself but would you care to comment on the impact on Melton and Hoppers crossing or Werribee?

Cheers
jennifer

 

[myoung]

I have two in Melton a 3X1 in Melton south(2006 $142.5K) - rent just going to $200 pw and a 4X2 in Darlingsford (2007 $242K with good depn) lease about to end @ $275 pw, agent wants to put to $290 pw.
Yields are getting stronger.
Cant wait for the fixed loans to expire now.

 

[Lamingtons]

I'm going to Melton to have a look this weekend.
I notice a lot of new developments on the market for lease. But it doesn't seem to impact the older houses that you Melton owners are leasing. Are these new developments in an area that are not as good transport and access wise?

 

[Peter 14.7]

Sure, I will put in simple terms.

Melton is like Campbelltown 20 years ago. On the freeway, on the rail and has a bad rep but ripe for growth. Flat, spacious, easily serviced.

Original town is old but has grown 50% in last 10 years to include all the mod cons such as large shopping centre, cinema, bunnings, indoor pool centre, etc.. Freeway all the way to CBD excep Deer Park and that is being bypassed at the moment.

Melton is serious FHO territory.

The new infrastructure supports that with better and more frequent rail, more capacity on the Westgate Bridge which will be needed when the Deer Park Bypass ( think M5) comes on line in 12 months. It is not tolled BTW.

The Outer Ring Road Study is first step to another key road link to the Hume, to Tullmarince to Avalon. This is signficant because West Melb is still heavily industrial works based and will IMO remain so. Toyota, Ford, Holden, etc... are all located here and trucks rule Melb.

So new rail and stations is all good. Melton is less than 1 hr to CBD with the Bypass and that will attract more semi professionals to the area and more upmarket housing. Like you have better suburbs around Campbelltown.

Some rightly claim CG is limited becasue of the demographics and the space. easy to develop more suburbs. I agree however at the moment you can buy CF neutral so if it costs you nothing and goes up only 5% per annum where the problem. Also it has a strong rental demand. Lower end so not affected by recession as many are on gov assistance for part of the income. The $1k per child bonus this week will flood Melton with money.

Peter

 

[Peter 14.7]

I'm going to Melton to have a look this weekend.
I notice a lot of new developments on the market for lease. But it doesn't seem to impact the older houses that you Melton owners are leasing. Are these new developments in an area that are not as good transport and access wise?

Yes.

My two IPS are 2003 on big blocks so in the new market. Attractive to families or those wanting space read carsparking.

A lot of the stuff for rent at the moment is small lot housing. That is 300m2 blocks developed by builders to keep going when the normal building dried up.

If these are located close to the big shopping centre they appear to rent well. Young couples, DINKS, or very young chidren. These do not work for those with older kids and demand drops away swiftly to this market.

The really old stuff rents to those with the least money. This is South Melton stuff.

Peter

 

[our obsession]

Also...Melton Entertainment Complex seeking staff now...

http://www.meltonhrc.com.au/index.php?sectionID=4927&pageID=5322

Mainly hospitality, managers, food/beverage, gaming, admin, raceday positions..

"Interest in employment opportunities at the complex has been at a premium with over 850 applications lodged by mid November" ....from Industry publication, (Harness Racer-Dec08/Jan09 Vol25 No4)

Great aerial pics of complex:

http://www.meltonhrc.com.au/index.php?pageID=5014&action=pages§ionID=5014&pageID=5019&sectionID=4927

General home page, (give folk an idea of the 40 million dollar development):

http://www.meltonhrc.com.au/index.php

Latest Victorian Valuer-General Statistics for Melton.

Melton:

1997 Median House Price $91,000.......2007 MHP:$192,500

06/07 12 month change: 4%

97-07 decade change: 112%

Growth P/A: 7.8%

--------------------------------------------------------

Melton South:

97 MHP:$83,000..........07 $180,000

06/07 change: 1%

97-07 decade change: 117%

Growth P/A: 8%

-------------------------------------------------------

Melton West:

97: $88,250............07: $215,000

06/07 change: minus 2%

97-07 decade change: 144%

Growth P/A: 9.3%

 

[virgo]

Melton

Hi all,

All good news I'm hearing with Melton!!!

I'm sitting here twiddling my thumbs and waiting for that big harnass complex and Deer Park bypass to start. Great hearing that the harnass complex is starting to hire so many people...i would say follow infrastructure and jobs ...

Hmm think i should increase my rents on my 3 bedder in melton west? at present at $260 but it is a very big block!!

Hint for those who are looking at Melton West: buy near the schools and with big garage or shed...something to do with the fact that there are many truck drivers in M.

 

[kvellimalai]

Thanks Cherry Pro

Thanks Cherry Pro.
theya re not assuring any rental return . All he was telling is expected rent on that property. Which checking the realestate.com.au i saw there is more than 100 properties available for rent.
Is it a good sign?

Can someone tell me what the vacancy rate in Tarneit?

Regards
Velli

 

[myoung]

Thanks Cherry Pro.
theya re not assuring any rental return . All he was telling is expected rent on that property. Which checking the realestate.com.au i saw there is more than 100 properties available for rent.
Is it a good sign?

Can someone tell me what the vacancy rate in Tarneit?

Regards
Velli

@ Sept 08 API has it at 4.7% which is pretty high considering the average over melb, includes Hoppers too though, same postcode from what i can work out, 3029.

 

[Cherry Pro]

Rent in Tarneit

Hi K...
You should possibly have a chat with a few property managers in the area to ascertain the demand for a rental and the rent you are likely to receive. That should give you a good idea. A few will also be happy to drive past/even go into the property and give you their opinions. Actually, the property management arm of the rea you are buying this from, should be able to do this for you very easily.

Hi Virgo
Agree with you about the big sheds in Melton for all those truckies who reside in Melton.

Hi Our Obsession
Thanks for all those stats on Melton. At least some of the staff required at the Entertainment Complex will need to rent if they're not local to Melton and prefer to cut travel time.

Cheers