400k for IP in Melbourne - Where ?

[kanad]

I am a long term reader of the forum, but it is a time to ask a few question.
I want to buy a IP in melbourne this year (probably 2nd half). Cannot afford more than 400K with stamp duty, land tax, LMI, strata fee etc. on top. I am realistic that at this price I can only get a unit or apartment. My preference is to buy newish properties about 10 years old or less. I don't like the west or north. Preferably within 20k from the city and access to public transport.

Where would you suggest that I look within my budget.

 

[impala67]

http://somersoft.com/forums/showthread.php?t=94958&highlight=melbourne

http://somersoft.com/forums/showthread.php?t=92506&highlight=jake+milne&page=3

Here's a small start. Some previous Melbourne threads.

 

[Redwood]

I am a long term reader of the forum, but it is a time to ask a few question.
I want to buy a IP in melbourne this year (probably 2nd half). Cannot afford more than 400K with stamp duty, land tax, LMI, strata fee etc. on top. I am realistic that at this price I can only get a unit or apartment. My preference is to buy newish properties about 10 years old or less. I don't like the west or north. Preferably within 20k from the city and access to public transport.

Where would you suggest that I look within my budget.

Hi Kanad,

There are still excellent opportunities under $400k, within 20km of melbourne and with great infrastructure and transport. Do you have a preference for the type of dwelling (land for development/ apt) and area i.e east of west?

Cheers, Ivan

 

[Aaron_C]

You'd have to go pretty far out to get something that fits that criteria.

 

[The Y-man]

I am a long term reader of the forum, but it is a time to ask a few question.
I want to buy a IP in melbourne this year (probably 2nd half). Cannot afford more than 400K with stamp duty, land tax, LMI, strata fee etc. on top. I am realistic that at this price I can only get a unit or apartment. My preference is to buy newish properties about 10 years old or less. I don't like the west or north. Preferably within 20k from the city and access to public transport.

Where would you suggest that I look within my budget.

http://www.realestate.com.au/property-apartment-vic-doncaster-115452831

http://www.realestate.com.au/property-apartment-vic-doncaster-114127319

http://www.realestate.com.au/property-unit-vic-clayton+south-115504315

http://www.realestate.com.au/property-unit-vic-clayton+south-115269251

http://www.realestate.com.au/property-unit-vic-clayton+south-110843155

The Y-man

 

[impala67]

Good links. The second one looks like a solid investment if you can get it closer to the lower amount.

 

[vaughan]

Good links. The second one looks like a solid investment if you can get it closer to the lower amount.

You mean 2/5 Firth Street Doncaster? it's currently leased until 31/3/2015 at $1257 pcm (quoting the listing) which is 1257x12/52=$290.07 a week. On a $400,000 property that's 3.77% gross return. Assuming $2k pa strata and $1k pa council rates, it drops to 3.0%. Take out 5.5% pm fees and we're at 2.8%. It looks like you could renovate the kitchen and bathroom but you're stuck with $290 pw until April 2015. Solid investment?

(Not being snarky, just trying to work out your logic. Do you expect great cg? Is this great compared to everything else in Melbourne?)

 

[Deltaberry]

1 bedroom apartment

You might get a 2 bedroom soon with the way rents are crashing

 

[The Y-man]

oooops! Sorry, missed the 10 year age thing.

Ignore my suggestions

The Y-man

 

[impala67]

You mean 2/5 Firth Street Doncaster? it's currently leased until 31/3/2015 at $1257 pcm (quoting the listing) which is 1257x12/52=$290.07 a week. On a $400,000 property that's 3.77% gross return. Assuming $2k pa strata and $1k pa council rates, it drops to 3.0%. Take out 5.5% pm fees and we're at 2.8%. It looks like you could renovate the kitchen and bathroom but you're stuck with $290 pw until April 2015. Solid investment?

(Not being snarky, just trying to work out your logic. Do you expect great cg? Is this great compared to everything else in Melbourne?)

No worries , I only meant compared to the 5 links (was at work earlier in the day, wasn't going to save, didn't delete & forgot about the post). Agree with your whole post actually (BC & rates prob. a bit less though). Anyway, but yes either way R-return is no good.

RR is a good point to consider when finding something that matches the 10 years or less criteria. All the best with it kanad.