Melton Vic.

Hello All

FYI I havebought two IP in Melton (wife actually) and I am managing another sale as buyers agent.

Since I started looking with another friend client 4 months back we have seen rents go up 10% $20 week and prices up 10% ( which I only worked out when typing here) IMO.

Consider Melton is you have $250k and want near new with large depreciation and secure tenant base. It aint Toorak or Kew but that does not matter. It is return v risk. Supply v demand.

Peter 14.7
 
Mystery

Yes I have been following the post and thankyou all for your input. I have not bought in Melton yet but still thinking about it. My sums tell me to build in the Ipswich area at the moment.

Wayne
 
Peter 14.7 said:
Hello All

FYI I havebought two IP in Melton (wife actually) and I am managing another sale as buyers agent.

Since I started looking with another friend client 4 months back we have seen rents go up 10% $20 week and prices up 10% ( which I only worked out when typing here) IMO.

Consider Melton is you have $250k and want near new with large depreciation and secure tenant base. It aint Toorak or Kew but that does not matter. It is return v risk. Supply v demand.

Peter 14.7
Click to expand...

Peter, I am looking to buy in Jan/Feb next year, will have $250k max, would prefer to only spend $200k though.

I can see quite a few places on the market for <$200k with 3br and >500sqm in block size in melton.

my only real issue is the commute, does anyone know the peak time travel to the city for the train? Due to FHOG I will be having to live there for 6 months, so wondering if it is feasible with travel.

Also - is there much difference between Melton/Melton South/Melton West?
 
Belu said:
Peter, I am looking to buy in Jan/Feb next year, will have $250k max, would prefer to only spend $200k though.

I can see quite a few places on the market for <$200k with 3br and >500sqm in block size in melton.

my only real issue is the commute, does anyone know the peak time travel to the city for the train? Due to FHOG I will be having to live there for 6 months, so wondering if it is feasible with travel.

Also - is there much difference between Melton/Melton South/Melton West?
Click to expand...

Firstly, I woul be buying now not later as prices are rising.

Those places you mention are older 20 year old homes. The $230k one are 3 year old.

Commute. Dont know simply check Countrylink or VLine timetables site.

Melton South is old and down market. Melton is oldish and some new. Melton West is mostly new but some old and Kuranjang ( Melton North or East is 3 years and younger mostly. Closest to Melbourne for road and nicer suburbs.

Are you buying for PPOR or IP?

Please feel free to PM private message me.

Peter
 
Posted eslewhere but pertinent to our thread here.

GoAnna! said:
Not everyone seems to agree number wise

http://data1.reiv.com.au/trendchart/

Shows that thee is a general upward trend, strongest within 10 kms from the city (22.2% annual) and little growth at 20kms plus (6.1%) with March quarter downturn recorded each year. I assume this would be based on completed sales and if so this would reflect the sales in late 2006 and early 2007 which are typically those left over after the peak spring period. The current strength those on the grouns are currnelty witnessing is yet to even be reported. RE stats are always old news as by the time the sales go through the valuer generals office it is many months old.

The market is very segmented and to talk about Melbourne's median or growth rate is meaningless.
Click to expand...


I agree as well but thanks for the chart anyhow.

So using the chart Melton rise from around $182k to $200k in the last quarter but overall has been flat since records began in Sept 04. As many house in the nearer range where built in 03 and 04 this means and important stat is missing.

Also it does not show Kurunjang or Melton West but simply Melton and Melton South. So assuming Melton is the centre, west and Kurunjang then we have a mixed bag noting my comment earlier as the age mix.

But as stated investment here is a No Brainer. My calculations show each IP is costing me only $20 a week and maybe as little as $10k subject to final depreciation. With rents rising strongly at the moment and not reason to stop, in at least 2 years they are going to be neutral cost or positive geared, if not earlier.

So as Robert Kiyosaki's Rich Dad says "how many can you afford if they cost you $0.?” Answer: As many as you can find! subject to equity.

The tipping point to go Melton for me is the new freeway to bypass Deer Park. It will mean freeway all the way to the CBD. The benefit of this will be like the growth Frankston is experiencing at the moment due to the almost completion of the Freeway there. Prices has skyrocket.

Melton will do the same end 2009. I am getting in early as personally, the time, income and bank response is right for me.

Regards Peter
 
Wayne,

Good luck with your search. The market is certainly moving around Ipswich, ... we bought 2 IP's in April in the area and can't stop smiling .... huge growth in only a few months.

Melton appears to be more medium to long term, but that's okay with me as like most of us I've bought for the long term. We bought 18 months ago and have just put the rent up ... costing us next to nothing per week now. Happy to sit back and let it do it's stuff.

All the best

Martin
 
is anyone else buying in Melton at the moment?

I would love some thoughts on what areas are particularly good and whether houses or units seem to be the go there.
 
Hi Shutter Girl

I bought in Melton and have recently settled. A 4 bedroom house
on a 1/4 acre block at $215,000 and the rental return is about the 5.5 % mark. Know a few others who have bought there as well. May not suit
all but I'm quite happy.

Apparently Melton South does not have as good a reputation as Melton West
but it has the University. In saying that, Melton West with proximity to
the shops, school and swimming pool is kind of sought after by families.

Good luck.
 
Why Melton makes sense to me...

GSJ

Ugly duckling hotspot - heard that one before !

One couldn't quite get the same kind of prices with a similar return at Frankston for sure - I know as I was looking there as well.

From some REIV figures that Our Obsession posted elsewhere, Melton in general has seen capital growth of approx 11% pa over the last 10 years and with a 5.5% rental return, I'm quite happy.
 
I wanna know what GSJ said now, hehe.

Congrats Cherry Pro

I might do a bit more research on the properties in the area.

Would it be better to buy a newer property there do you think?
 
Hi again Shutter Girl

Never mind what GSJ said - better sense prevailed and he deleted his post.

If you can get something within the 10 year mark, you can't be wrong.
The new properties (less than 2 years old) are more or less on smart blocks -
400 sqs.

But if your do your research around, don't think you can go wrong.

Good luck !
 
i think what she is saying is that you should work out if you would rather building depreciation from a newer home or the larger size block of an older one.
 
Thanks Belu - you got it spot on - I prefer size of block over depreciation
but whatever makes your numbers work, Shutter Girl.

With a newer property you will have fewer maintenance issues and larger depreciation but lesser capital growth in the initial period.

And any property built after 1988 will give you a small amount of depreciation.

Cheers.
 
thanks belu and cherry, I think I understand better now. We were thinking that lower maintenance costs were good but because it is our first IP with the hope of getting the 2nd in 6-12 months, we probably need something to give some capital growth so we can continue building our portfolio.

Do newer properties not get as good capital growth???? And if so why is that?
 

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