$700K - Chadstone vs Clayton

W

willister

Hi,

Was wondering which of these presents better opportunities? We are trying to spend $700K odd and hold for at least 10 years.

Here is my current analysis with the wifey:

Clayton:

+ve:

* We think it's easier to rent out to the student population at nearby Monash.
* Can afford 650-700m2 blocks with a 3 bedder weatherboard house.

-ve:

* Most of the houses require at least $50K work.
* 3-5 kms further form CBD.

Chadstone:

+ves:

* Closer by 3-4kms to CBD.
* Zone 1 (Holmesglen Station)
* Access to Monash Freeway.
* Possible to access Ashburton line with relative proximity as well.
* Would boom quicker with flow on effects from Ashburton, East Malvern etc.

-ves:

* Can only really afford 600m2 type properties with 2-3 bedders weatherboards.
* Nearby Jordanville could be roughish.

Thanks.
 
Hi

If you ever want to live in it I would choose Chadstone 100%. I have lived in Clayton and have relatives in Clayton and it sucks.

But from a financial point of view I am not sure and would let others advise here due to as you have mentioned the uni student aspect.

Regards,

alicudi
 
I dont have much idea about Melbourne, but having been there a few times, and lately at that, I would think closer to the tram lines would be more desirable, no?

In other words, Chadstone. And that massive shopping centre there...:eek:

Will be in Clayton this weekend coming, Monash Uni open days.
 
Clayton might be easier to rent but do you really want students as tenants?
Unless you are prepared to put in the hours to rent out per room (to maximise income), I would avoid students and target professionals who want convenience to cbd and have a bigger budget.

The public transport zones are going to be abolished at the end of the year but I would still prefer Chadstone.
 
Or...

You can buy in Clayton, hold, demolish, develop, and flip it.
I mean that's what I would do anyway

You may not be ready for this concept now, but you never know what can happen in 10 years
Having access to land = more opportunities
 
Been to both auctions and inspection days for various properties, I won't lie, I prefer Chadstone by miles, it just I can't describe, looks and feels better. The only other real drawback is also powerlines that run parallel to the Monash.

I think more or less Chaddy will be $80K - $100K above Clayton for a similarly priced property equal distant to the station.

Wifey likes Clayton purely for financial reasons but also factors in nearby shops as good prospects and vibrant.

I don't know, I see Chaddy as a place I could really live in at the moment...
 
willister said:
Wifey likes Clayton purely for financial reasons but also factors in nearby shops as good prospects and vibrant.

I don't know, I see Chaddy as a place I could really live in at the moment...
Click to expand...

A wise man once said to me that, treat investment as any other form of business, and don't get your emotions involved.
 
Hi

Some good posts in this thread.

Yes rule number one is if buying a property for investment reasons don't let emotions get in the way.

More land = more opportunities in the future....this is my golden rule that I like to follow when buying investment properties.

But who knows what could happen to Clayton in the future?, maybe it will be the place to live and take into consideration extra land it might be the bread winner out of Clayton v's Chadstone?

But goodness me I hate Clayton and couldn't live there again.

Regards,

alicudi
 
Agree with previous comments. If it is for investment, I would go through the numbers and pick whichever one makes better sense. Also look at the zoning, which one would allow or has better development potential in future
 
Re Chadstone be sure to consider which part of Chadstone. Around the Shopping centre with a 2km radius has terrific potential. However as you move down warrigal rd to past Waverley rd its a different story. Rough with not a huge amount of development unless they demolish the whole lot.

Clayton is not bad, but for me has peaked. Heavy student accomodation due to monash ard the corner so a heap of apartments going up - would not touch this area.

Someone mentioned cheltenham - agree this area has sustainable growth, great infratructure, great schools and not heavily influenced by the Chinese property explosion. I have a heap of clients buying in the area.

Cheers, Ivan
 
I better push some pluses Clayton :) (Disclosure: I own property there!)

Monash Uni is in the northern part away from Clayton "proper".
We have never had student tenants in our 3BR villa unit (currently have family of 3 in there).

The BIGGEST (by far) employer in Clayton is the Monash Medical centre and associated specialists etc

Granted it does not feel like the safest place on earth in the dark - although the last assault death at the station was in daylight I think..... but it is very vibrant with a big array of late night asian eateries (a cross between Box Hill and Springvale is the way I describe it)

The biggest headache at the moment is the MASSIVE traffic jam every night on Clayton Rd between North Rd and the tracks. I beleive the track is earmarked to go underground and that will be a game changer.



Cheers,

The Y-man
 
Redwood said:
Re Chadstone be sure to consider which part of Chadstone. Around the Shopping centre with a 2km radius has terrific potential. However as you move down warrigal rd to past Waverley rd its a different story. Rough with not a huge amount of development unless they demolish the whole lot.

Clayton is not bad, but for me has peaked. Heavy student accomodation due to monash ard the corner so a heap of apartments going up - would not touch this area.

Someone mentioned cheltenham - agree this area has sustainable growth, great infratructure, great schools and not heavily influenced by the Chinese property explosion. I have a heap of clients buying in the area.

Cheers, Ivan
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For Chadstone, we have mainly targeted the boundary between Homesglen Station in the West to Jordanville Station to the East and pretty much Waverley Road, Huntingdale Road and Warrigal Road being the "frame" we were looking in. This pocket somewhat feels more "homely" than the other parts of Chaddy.

Most unrepaired houses seem OK, they were perhaps all ex government houses or something. This pocket to us seems the best spot in Chadstone, not too close to the shopping centre which we want to avoid and closer to the stations. Being too close to the Chaddy monster, you might be one day swallowed by them...not sure if that is a good thing.

For Clayton, we are mainly aiming to the left of the station (the side opposite the hospital). There was a 3/4 bedder BV place that sold for $680K odd with 700m2 of land. I felt that was a bargain but wasn't ready to buy at that point not being prepared with finances and so forth. I think that was back in April or May this year.

We looked at Ashburton in 2012 due to the proximity of 2 rail lines but now it's exploded.

The more you consider, the more confusion there is!
 
Redwood said:
However as you move down warrigal rd to past Waverley rd its a different story. Rough with not a huge amount of development unless they demolish the whole lot.
Click to expand...

I agree with Redwood,seeing i drive by there daily but that said imo there will be an upswing despite ex-gov housing.

Time it well and wait,there are devos changing the area.

Cheers Spades.
 
Spades said:
I agree with Redwood,seeing i drive by there daily but that said imo there will be an upswing despite ex-gov housing.

Time it well and wait,there are devos changing the area.

Cheers Spades.
Click to expand...

I think there already has seeing what has happened to Ashburton/Ashwood. Despite not really being served by rail Ashwood is now asking $800k for a 600m2 or so weatherboard house. In 2012 I clearly remember similar quality properties in Ashburton, within 1km from the nearest station being $650-$700K or so.

I drive there on a daily basis commute to and from work (CBD fringe) as we are currently renting in Mount Waverley, I definitely see this as perhaps the last remaining remotely affordable area in the Eastern/SE Suburbs.
 
For a PPoR - Chadstone. Approx. $1 - $1.2 mil for a ready to move in house
To Invest - Between Caulfield and Clayton along the princes hwy. Of course, there are pockets to be avoided like Oakleigh South and parts of Clayton.
 
We bought our PPoR in Chadstone in March and have friends that recently exchanged on a townhouse in Hughsedale. Prices have definitely moved up a fair bit.
 
Really not sure why you've just picked those two suburbs as there are plenty of surrounding suburbs close to train and the Monash that are worth looking at.
Can you elaborate as to how you came to those conclusions please?

Personally I don't like the feel of Chadstone and would pick, say Hughesdale over it any day. However I do agree that Chadstone has more going for it than Clayton, mainly due to the shopping complex and as such local jobs.

That being said there's also Oakleigh, Huntingdale and Ashwood which all have certain spots which are nicer, in my opinion. A lot of Chadstone feels like a thoroughfare.

If development is your goal (you're mentioning land size, which only really matters if you want to build/sub-div... pay more land tax), then Oakleigh East, Clayton Nth/Sth and Ashwood appears to have more precedence than other areas from driving in those suburbs.

Hope that helps.
 
srini said:
We bought our PPoR in Chadstone in March and have friends that recently exchanged on a townhouse in Hughsedale. Prices have definitely moved up a fair bit.
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Completely agree with this. This whole region has done really well over the last 18 months.
 
OK guys, need to pick your brain on this basically boils down to two choices:

Chaddy - Bit further out from Holmesglen station 1.1km, 600m2 house, asking $700K. 3 bedder weatherboard.

Clayton: 900m to Clayton Station, BV 4 bedder, asking about $630K. 600m3

Thoughts? Want to get a nice steady stream of income...
 
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