Advice Please

We are in the process of searching for an investment property (this will be our 1st). THis seems like the perfect place to obtain a little advice.
Mark seeing that you live in Melton, maybe you could give a a local heads up!
We are going through an organisation called SOLTUTION INVESTMENTS. Has anyone heard of them?
There is a property available in the new Botanica Estate. This is in Melton South.
The property is full turn key. 3 bedroom, 2 bathroom and double lock up garage. The land size is 400m2, and the property size is 16.17sq. THey are wanting $315,000 for it. Does that seem a little excessive?
I have researched the area, and I know that you can get properties for well bellow $300,000
So my question be, what do you think?
My gut tells me that investing in Melton will be a good idea LONG TERM, I'm just not sure about the short term, and being our first one, I am a little overwhelmed!
Do you see promise in investing in Melton, and do you know if there is too much opportunity for people to rent in the area?
QUESTIONS, QUESTIONS, QUESTION!!!
Would really appreciate any feedback
Thanks for your time :)
 
THey are wanting $315,000 for it. Does that seem a little excessive? I have researched the area, and I know that you can get properties for well bellow $300,000

According to RP Data the median priced home in Melton South is $223,000. So if you are buying at $315K, then you are not buying AT or BELOW the median price which is a good investing rule for max. capital growth / ease of selling if you get in trouble & need to / ease of getting tenants etc.

My gut tells me that investing in Melton will be a good idea LONG TERM, I'm just not sure about the short term,
RE is NOT a short term investment.


..and do you know if there is too much opportunity for people to rent in the area?
Rental vacancy is currently at 2.8%. http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=3338&t=1
Given that 3% is considered balanced, then this is fine.
 
Personally there is no chance that I'd be stumping up that kind of cash for a new build in Melton Sth. Don't know how many people want to rent there & for what money but there's one way to find out. You need to get a rental list from a local agent. Have a look at how many properties are for rent & for how much and go and inspect them. Ask the property managers about demand in the area. I find that it may be better to tell them you're a potential tenant rather than a potential landlord.
Well done for starting to do your own homework, though. I haven't heard of Solution Investments but it sounds like they have teamed up with the builder to sell these places to investors. They will not be looking after your interests - only you can do that.
 
I am in the early stages of buying my first investment property as well and sorry for this beginner question but why is 3% Rental Vacancy considered to be balanced?

Is that a figure that you should look for?
 
According to RP Data the median priced home in Melton South is $223,000. So if you are buying at $315K, then you are not buying AT or BELOW the median price which is a good investing rule for max. capital growth / ease of selling if you get in trouble & need to / ease of getting tenants etc.

Propertunity, are you able to explain this concept in a little more depth? Or can you point me to a post?
 
Propertunity, are you able to explain this concept in a little more depth?

Really simple example:
Houses in one suburb have high end properties for $900K, the bulk of them are around $350K and there are some little shacks that are $200K and everything in between.

The suburb median in this case is around $350K.

If you buy at $350K or below, say a $290K property, then you can be pretty well assured that:
1. If you need to sell you will be able to - since the bulk of the sales volume is around this level.
2. In 10 years time the $290K house will have doubled to $580K.
3. You'll be able to rent the $290K house to most tenants that want to live in that area.

If on the other hand you were to purchase an $800K house in this same suburb, you could not be assured of ANY of the above.
 
I doubt you can assume that property prices will double in 10 years time - we are talking about melton here aren't we?
 
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