Advice for a first home buyer in Melbourne??

[mkib]

Hi guys, I know this an investor's forum but I was wondering if I could get some advice for buying my first dwelling place. The market is tough and I am struggling to find a place that meet my needs with a low budget$400k) I have. If this post doesn't go against the forum rules and members are willing to help I will list my needs in the next post.

Also, are there reliable organisations who help buying based on client's criteria?

Thanks in advance.

 

[turk]

Hard to help with out knowing your needs.

 

[j_p]

Hello mkib. You are more than welcome to ask any questions you have. There are no rules against asking questions about your first dwelling, in fact this is still an investment and it can be wise to keep this in mind.

Been specific on your needs/wants and location will help people give you ideas.

If you haven't done so already get yourself a mortgage broker as a #1 priority, don't deal with a bank directly, they only have their best interests in mind and it is just a headache.

Buyers advocates/agents (BAs) can help you purchase a property, their services aren't cheap ~$10k isn't uncommon for locating and negotiating a property.

 

[mkib]

Thanks guys for input. Here's my need:

Must-haves:
- 3 bedrooms
- Close to train station
- Schools

Not-importants:
- Size of the property
- House or unit

Nice-to-haves:
- Growth prospect

Location preference:
East/south-east; preferably not more than 35-40k from the city. The reason I want to buy in the east because me and my wife both work in the eastern suburbs. Otherwise we would love to live in a 4 bedroom house with a backyard like many of our friends are living in the west. But driving 45km every morning to the other side of the city to get to work won't be much fun I guess.

Now, I am aware that my budget places me at the lowest end of the property market, So I tried to balance my expectations. I am happy to go beyond Dandenong/Ringwood but not as far as Pakenham/Frankston. I am relatively new in Melbourne and don't know the suburbs well. So, your help will be really appreciated.

 

[jpcashflow]

Hi

Hello Mkib,

Welcome to Somersoft and please feel free to ask any questions

Buying a property to live in is never easy ... buying a investment property is allot easier..

400K is that including stamp duties or excluding?
I think you are doing the right thing in buying a property that is close to work.

Since you are buying a property to live in you can use tools like realestate.com.au and google where you will be able to find a whole heap of information about a particular suburb or you can even ask any of us.

 

[dan_89]

Going off your requirements Id be looking at places around Boronia or The Basin. Still some affordable blocks with reasonable and completely liveable houses. Closer to boronia would probably be better as your closer to shops/station although you'd probably only be looking at units/townhouses within that price bracket. My advice would be stay away from packenham.

Alternatively there's Dandy North although prices have shot up there big time in the last 12 months and you probably won't find much other than older units around the $400k mark.

Keen an eye on the sold prices to gauge what things are selling for and go network with local agents. All the best

 

[srini]

Must-haves:
- 3 bedrooms
- Close to train station
- Schools

Not-importants:
- Size of the property
- House or unit

Nice-to-haves:
- Growth prospect

Welcome to the forum. I'd suggest that growth prospect is closely linked to size of the block/land content and whether it is a house or unit.

Houses/townhouses tend to hold their value and grow more due to higher land component.

You could also consider Keysborough, pockets of Noble Park and Dandenong for that price range.

 

[mkib]

Thanks a lot for your input guys. That gives me a head start for my search.

 

[mkib]

Welcome to the forum. I'd suggest that growth prospect is closely linked to size of the block/land content and whether it is a house or unit.

Houses/townhouses tend to hold their value and grow more due to higher land component.

You could also consider Keysborough, pockets of Noble Park and Dandenong for that price range.

Thanks for advice. I would definitely prefer a house than a unit but if living in a unit gives me the option to come closer to the city I would prefer that too.

I would try to avoid noble park if I can. And Keysborough doesn't have a train station?
How about Hallam and Narre warren?

 

[srini]

Hallam and Narre Warren are ok. Narre is a bit better in terms of infrastructure and shopping. Hallam is less so.

 

[mkib]

I have come across a property in bayswater of my interest. Its a unit close to train station, primary school and park. But a friend of mine told me today that bayswater is a 'bit of a rough' area. Is there any truth in this? I know people possess different opinions for a suburb. But I would still like to know what you think.

 

[Deltaberry]

There's value out in some pockets, but exercise caution in these times.

 

[The Y-man]

I have come across a property in bayswater of my interest. Its a unit close to train station, primary school and park. But a friend of mine told me today that bayswater is a 'bit of a rough' area. Is there any truth in this? I know people possess different opinions for a suburb. But I would still like to know what you think.

I think the rough bit is when you go to an open and there is a queue of 30 people waiting to get into the open.

The Y-man

 

[The Y-man]

Could always try Cranbourne

The Y-man

 

[macdub]

you can try Lynbrook/Lyndhurst..should be able to get 3 bedder for 400k..got train stations and freeways at doorstep..

 

[BayView]

Thanks guys for input. Here's my need:

Must-haves:
- 3 bedrooms
- Close to train station
- Schools

Not-importants:
- Size of the property
- House or unit

Nice-to-haves:
- Growth prospect

Location preference:
East/south-east; preferably not more than 35-40k from the city. The reason I want to buy in the east because me and my wife both work in the eastern suburbs. Otherwise we would love to live in a 4 bedroom house with a backyard like many of our friends are living in the west. But driving 45km every morning to the other side of the city to get to work won't be much fun I guess.

Now, I am aware that my budget places me at the lowest end of the property market, So I tried to balance my expectations. I am happy to go beyond Dandenong/Ringwood but not as far as Pakenham/Frankston. I am relatively new in Melbourne and don't know the suburbs well. So, your help will be really appreciated.

Ringwood is probably not much better in terms of travel time than Frankston.

I lived in Ringwood back in the early '80's; not a bad spot, and the freeway goes out that far now. Train station of course, Eastland etc.. don't know about schools though.

But check out Frankston; go there for the day, and get the train back in to where you work to see how it is for travel time.

I occasionally catch the train from Frangers in to the MCG/Etihad - about an hour all up; stopping all stations (not many express options).

We had a 2 x 1 unit there until a couple of years ago - 5 mins walk to the station, 5 mins to Myers shopping area...you will find plenty of possibilities under $400k.

And; right on the Peninsula doorstep.

Follow this thread:

http://somersoft.com/forums/showthread.php?t=94531

 

[mkib]

Some of the properties I have looked at recently will go for auctions. I just learned today that you can't bid conditionally ie. subject to inspection. If I am the highest bidder I have to buy the property regardless of the condition. So, how does that work? Is it wise to pay an inspector before the auction? What if I lose in the bidding?

 

[The Y-man]

Some of the properties I have looked at recently will go for auctions. I just learned today that you can't bid conditionally ie. subject to inspection. If I am the highest bidder I have to buy the property regardless of the condition. So, how does that work? Is it wise to pay an inspector before the auction? What if I lose in the bidding?

It's one reason why selling at auction is a good thing (for a vendor).

Yes, people do pay for an inspection prior, but if you are outbid, too bad.
Having said that, don't get yourself trapped bidding higher just because you had an inspection done!

It's worth getting to know how to do at least basic inspection yourself.

The Y-man

 

[mkib]

Thanks Y-man.
I was looking at units in Chelsea as they seemed little affordable but the commonwealth bank property guide shows zero growth in that suburb in last 12 months. Any idea why?

 

[Nick]

Thanks Y-man.
I was looking at units in Chelsea as they seemed little affordable but the commonwealth bank property guide shows zero growth in that suburb in last 12 months. Any idea why?

I think you need to do more research. My research shows 11% growth in Chelsea. There are a lot of units being built there now so potentially an oversupply could be affecting the price. From my knowledge though Mordialloc to Frankston has been selling like crazy lately.

For the price you pay for a unit in Chelsea I would be looking at buying a house in Frankston. Frankston is slightly further out by train but is quicker to city via freeway, has better cafes and restaurants and houses are comparable price to Chelsea units.