2 Bedroom House - Inner City Melbourne

Hi,

I am looking at property to buy and are after some advice as to which inner city area in Melbourne (ie no more than 5km forom the CBD) is considered to be good value for money that may at the present be undervalued and shows good signs for capital growth. Maybe an area that is to benefit from improved Infrastructure or the like and has good public transport.
 
Take a compass and draw a circle around the 5 km rim.....most street directories have this anyway.

Visit those suburbs and establish your own feel.

Look for those with good transport links and that look dishevelled.....they will be the sleeping ugly ducklings. For me it would be North Melbourne.

Can't tell you if it's undervalued or not however in 10 years time it is likely to appear that way, as is everything likely to be in the 5 km rim.
 
Hi,

I am looking at property to buy and are after some advice as to which inner city area in Melbourne (ie no more than 5km forom the CBD) is considered to be good value for money that may at the present be undervalued and shows good signs for capital growth. Maybe an area that is to benefit from improved Infrastructure or the like and has good public transport.

I bought in Brunswick last year (2 bedroom house). My house is just under 5km to the CBD (just a few streets from Brunswick Road). Bank valuation had my house 150K above the price I paid 1.5 months after I purchased. North Melbourne is excellent as well. Know someone who bought there achieving excellent yield and probably gone up another $100K or so 2-3 months from purchase. More than 2 beds though.

A mate's friend bought in Carlton North last year (2 bedroom house) for a tad under $500K. I can assure you 2 bedroom houses in Carlton North start at around $600-650K now.

Having said all that and the huge price rises, I still think there is plenty of room to grow inner city. Depends on your budget, but whatever happens, I don't think you can go wrong with any purchase inner city. I can't think of any suburb within 5kms which doesn't have good public transport or good infrastructure, haha.
 
As mentioned, anything within 5km will be fine for transport and infrastructure.

What might be more of a deciding factor is your budget. Big difference in price between say Sth Yarra and Flemington
 
Most inner city areas are decent I think. However a 2bdr house will cost a fair bit in almost all of them.

I think north Melbourne or west melbourne could be good value, although there is probably a reason why these areas are cheaper than Fitzroy or East Melbourne or South Melbourne or Parkville or Carlton.

Collingwood or Abbotsford are potentially interesting, but there are lots of dodgy areas.
 
Richmond is great but don't go near Leslie St. Trust me - I live in Richmond. I'm investing in Richmond also but not too close to Victoria Street. Seriously keep away from Victoria St. As a previous poster said - that's the crap part of Richmond. Don't do it. Try to stay south of Highett St.
 
In response to the reply on Collingwood. I think it's often seen as a growth area being so close to Fitzroy. I lived in Fitzroy for 8 years and liked it. We left the city for a couple of years and then rented in Collingwood whilst trying to decide where to live. Collingwood was high on the list but after renting for 12 months we knew we couldn't live there - ever. I don't think it will ever really take off and I wouldn't spend a penny investing in Collingwood personally.
 
Most inner city areas are decent I think. However a 2bdr house will cost a fair bit in almost all of them.

I think north Melbourne or west melbourne could be good value, although there is probably a reason why these areas are cheaper than Fitzroy or East Melbourne or South Melbourne or Parkville or Carlton.

Collingwood or Abbotsford are potentially interesting, but there are lots of dodgy areas.

They are more industrialised areas. Not many spots in Nth/West Melb with period homes, unlike Parkville or East Melbourne. Parkville has far nicer streetscape too. Fitzroy + Carlton are established hubs. Errol St will never compare with Lygon or Brunswick St.

Also they are in the west. Stigma or coincidence?
 
Hi,

I am looking at property to buy and are after some advice as to which inner city area in Melbourne (ie no more than 5km forom the CBD) is considered to be good value for money that may at the present be undervalued and shows good signs for capital growth. Maybe an area that is to benefit from improved Infrastructure or the like and has good public transport.

I went back and re-read your original post and would like to get some insight into what you classify as 'good value for money' and 'undervalue'. In my opinion, I don't think anything can be classified in that way (happily to be proven wrong here) and would think such are loaded terms to justify investment and/or purchases. Sure, you can buy under market, but I would define that as arbitrage more than anything else. Just because a neighbouring suburb is leagues cheaper (for example, Surrey Hills and Box Hill) doesn't necessarily call for undervaluation.
 
Thanks for the advice, I was looking to purchase in Richmond in mid to late 2009, however the prices have increased beyond my budget.

What would I be looking at for a 2 bedroom terrace house on approx 100-150m2 of land in West or North Melbourne?
 
Richmond is great but don't go near Leslie St. Trust me - I live in Richmond. I'm investing in Richmond also but not too close to Victoria Street. Seriously keep away from Victoria St. As a previous poster said - that's the crap part of Richmond. Don't do it. Try to stay south of Highett St.

Had an IP 1 block from Victoria st - never had issues in the 7 years we owned it (ok, it got broken into once - bad luck for tenants, but no damage)

It was an apertment however, not house.

Cheers,

The Y-man
 
so say you bought a 350sqm home and land package in point cook for 350K 2 years ago? how much would that place be worth now?

With so many point cook packages and having so much more land. Just thinking rationally why would you buy off someone when you could build your own house?
 
Thanks for the advice, I was looking to purchase in Richmond in mid to late 2009, however the prices have increased beyond my budget.

What would I be looking at for a 2 bedroom terrace house on approx 100-150m2 of land in West or North Melbourne?

I don't know your budget but if you were looking for 100-150m2 of land in West or North Melbourne, you would need minimum $700K (even this in my opinion is not enough, but a start nonetheless) unless you plan to buy on Spencer St or Victoria St.

Here is an example

http://www.realestate.com.au/106116111

This is on 87sqm of land and not even in the 'prime' of North Melbourne and it went for $612K. You wouldn't say it is extremely flashy internally either.
 
Point cook is going to give me 20% compounded growth cause it's a new area and people are all buying there, thereby pushing up prices cause of the demand!

But seriously ----- if you are already priced out of Richmond houses (which have gone for around $600-700k+) then I think you are already priced out of most of inner-city Melbourne. You might get lucky with single storey terrace houses in North Melbourne/Flemington, but I think that'd be about it.

Point Cook is going to give you 20% compounded growth? Oh my goodness, and here I was bagging Point Cook. I definitely cannot beat that with my Toorak drumming!

150sqm land 2 bedroom houses (fully attached) are often nudging the $800K's and some have well exceeded it if in a 'prime' location and renovated.

http://www.realestate.com.au/106156252

This one went for $794K and I wouldn't even classify it as a 'prime' Richmond location.

http://www.realestate.com.au/cgi-bi...mt=&header=&cc=&c=3230091&s=vic&tm=1265052490

This one went for $766K (if my memory serves me correctly) as I was quite interested in this one. Slightly smaller than 150sqm land though.

http://www.realestate.com.au/cgi-bi...mt=&header=&cc=&c=3230091&s=vic&tm=1265052490

This one went for $812K. Was very close to buying this one.
 
Is it possible that the property values and capital growth in 2 bedroom houses in North Melbourne will catch up with the surrounding areas such as Richmond, Carlton, Parkville etc or will it always stay below that of its surrounding suburbs.
 
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