450k in melbournes west..

Hi all.

My partner and I are looking for a place to buy as our PPOR, however we'd obviously like to make the most of our money and try to buy in a suburb that will give good cg in the coming years..we may also turn it into an IP in the future.

Our budget allows us to look in areas like Sydenham, Taylors lakes, Delahey, Keilor downs, albion, sunshine etc.

We are also open to other suburbs like preston and the likes.

So what would you do with a budget of 450k?

Bit of background,

I have an investment in kurunjang (melton) that isnt doing much..surprise surprise. I work full time and my partner is casual atm with our work places located near cairnlea.

thanks, Mark.
 
Hi all.

My partner and I are looking for a place to buy as our PPOR, however we'd obviously like to make the most of our money and try to buy in a suburb that will give good cg in the coming years..we may also turn it into an IP in the future.

Our budget allows us to look in areas like Sydenham, Taylors lakes, Delahey, Keilor downs, albion, sunshine etc.

We are also open to other suburbs like preston and the likes.

So what would you do with a budget of 450k?

Bit of background,

I have an investment in kurunjang (melton) that isnt doing much..surprise surprise. I work full time and my partner is casual atm with our work places located near cairnlea.

thanks, Mark.

Hi Powerranger .... be patient friend...and my apologies that you invested in Melton, I have a heap of clients looking to sell off in that area due to nil capital growth.

Like any investment more information is generally required including salaries etc but one thing I will say is do not be limited to the areas you mentioned with that budget.

Are you vetted to the West? Do you work in the city and need to be close to the city?

Are you looking for H&L or happy with a townhouse or even an apartment?

You mention Sunshine - boy has that changed. There are opportunities in that price range for sure.

For boutique apartments - there are good ones in maidstone around the $5500 per sqm which is good value and maidstone is shining after being a dump 20 years ago.

Reason I ask if you work in the city as you may look further out for a H&L package and look for something near completion where although you pay stamp duty you usually save on the inflated price that is advertised off the plan. Closer to completion or finished and the developer just wants to get rid of the property.

Cheers, Ivan
 
Hi Ivan, thanks for your reply.

I have a little more info I can share. I have just turned 23 and my partner is 22. Combined we have savings just shy of 100k... With another 30k sitting in the mortgage for the Melton property which I purchased in 2011 at age 19.. Jumped in too quick I suppose!?

I work in the west and currently earn circa $100k yearly, whilst my partner earns around 15k with casual shifts here and there (trying to find full time work)

We don't like units and much prefer a house over a town house just for the potential of future development further down the track. In saying that we aren't completely opposed to town houses either.

We are just a little stuck on finding an affordable suburb that may offer good capital growth or rental yield..we would much appreciate people's predictions as to what suburbs they believe will be best to look into..

Thanks again, mark.
 
...PPOR...

...future development...

...affordable suburb...

...capital growth....

...rental yield....

There are some conflicting objectives there. I would first try and decide what is most important to you, rather than trying to tick all the above boxes for one property.
 
I would avoid any H&L packages or buying in any suburbs where they are common. I have lots of relatives living in this region and you are pretty much certain to lose money, especially if you buy in the lower to mid price range. Most people with this budget will not buy an existing property as land is still readily available, meaning that if you want to sell, you're not going to make much of a profit. There was a house near my parents which was a large 5 bedroom double storey and the owner had to sell it for less than he paid several years ago as there's just not much demand.
 
I wouldn't get too down on your Melton property. You purchased just when prices were starting to drop and only now are they just starting to get close to the 2011 prices and out of negative CG territory.

I have 2 properties in Melton (1 in Brookfield) and was lucky with the Brookfield property as it is my old PPOR and built just before prices went nuts in about 2008. I then saw prices drop over the coming years but have noticed in the last 12 months, and particularly the last 4 or so, prices starting to recover nicely.

I think there are better investments out there than Melton but then again, there are also worse. The vacant land between Caroline Springs and Melton is concerning but I wouldn't write it off completely (but I would also not purchase any more IP's there either). It's slowly gentrifying where the Woodgrove upgrades has done it favours and if the rail line electrification ever happens the stigma of being so far away will be partially removed too as anything that v/line services must be forever away....

I'm not overly keen on the Taylors Lakes and Sydenham areas and much prefer Sunshine and the likes as I see better potential for CG there. I remember when I first moved to Melb in 2008 and used to drive to work along Ballarat road (before the bypass) and after Caroline Springs it just turned to cr@p and wasn't in the least bit desirable. When I was in Melb last month I had to drive along Ballarat road again and it was almost unrecognisable. So many new developments both resi and commercial and had a *slightly* better feel about it. Give it another 10 years and I'm not saying it will be the new 'it' place but people will be starting to forget the stigma that's attached to the area.
 
I wouldnt say melton as a dud infvestment especially for a first one, obviously your timing wasnt the best, but thats the beauty of hindsight!
 
Our budget allows us to look in areas like Sydenham, Taylors lakes, Delahey, Keilor downs, albion, sunshine etc.

We are also open to other suburbs like preston and the likes.

So what would you do with a budget of 450k?
You work near Cairnlea so I would stick with all of the above you mentioned except Preston.

450k won't buy much in Sunshine and Albion. That money now buys run-down houses on 450+ sqm, or buys new townhouses.

You said you don't like units/townhouses, so I think you'd be looking at old run-down places in both Albion and Sunshine.

Taylors Lakes and south-part of Sydenham (Rose Hedge) you can get some big blocks with large 3 and 4-bed houses. (Moreso in Sydenham than Taylors Lakes)

I wouldn't worry about yield if I was you, since you said PPOR.

If it was me, I would want to buy a fixer-upper in Sunshine if you can snag one...it's pretty hard to buy there for freestanding houses.

Or...I'd buy a townhouse even though you said you don't like them. You can easily get a 2 and maybe 3-bed brand new townhouse for under $400k in Sunshine which IMO would have better capital growth than your Melton property. I also think it would have better CG than all the other areas you mentioned.

That is what I would do with your budget of $450k

EDIT: I agree, don't stress too much about the Melton place. If it's not costing you that much to hold, I would try and keep it, given the fact it looks like the upswing is starting there...
 
Hi all.

Our budget allows us to look in areas like Sydenham, Taylors lakes, Delahey, Keilor downs, albion, sunshine etc.

So what would you do with a budget of 450k?

thanks, Mark.

Although there has been growth in these suburbs (except Sunshine and Albion), I believe it has been organic and just off the back off other suburbs growing house prices.

Big issue in Sydenham, Taylors Lakes, etc is land availability. This is the issue for the whole corridor there. Once an area fills up they release new land.
If supply is there then it hinders demand. In a suburb such as Delahey or Cairnlea, there has been some growth, but it is dampened by land availability. People weigh up the "its just another 3ks out and its $100K cheaper" argument.

Sunshine and Albion etc are somewhat more insulated from these factors and have the infrastructure spending already done, look at Tottenham, Anderson Rd underpass, Footscray station upgrade.

I am by no means undermining the long term growth prospects of other suburbs you have mentioned, Im just bringing it back to the fundamentals.

Best of luck.
 
Thanks all for your replies.

We will now be moving into the Melton Property and making the new purchase an IP. In saying that, I'd still like the new purchase to have good land content and potential for development as its something I want to try eventually.

We have been looking predominately at sunshine and sunshine north. There is some decent homes on 550+ sq.m blocks that fall into our budget..with one being near Matthews hill area.

We find sunshine north a little isolated from train station access at Albion but its not overly far.It's also not too far from sunshine plaza, schools, bus stops and some parks. Obviously buying closer to the center of sunshine would be better though.

The search continues.
 
Back
Top