Albanvale VIC (Melbourne west)

Adivce from the Gurus: Albanvale VIC (Melbourne west)

Hi everyone.

We bought our first IP on the weekend. In Albanvale.
We had been looking in Broadmeadows, Gladstone Park and Sunshine West since Apr/May and have had pre-approval. But just missed out on a number of occasions.

This house is of a better std than that of st albans and broadmeadows for our price range (290-300k)
We almost bought a run down 4 beda right near St. Albans station but after that we drove a little bit out of the way to a house in Albanvale.

For rental purposes it seems ideal.
We picked it up for $285,000, they were asking $295 and its hard to find anything under asking price in the lower end of the market atm.
We had a builder inspect it. All fine.

My concern is a little bit the area. As maybe we would have been better off buying in Deer Park.

It is right next to a medium sized plaza, and the suburb is only a little pocket, but sheltered from St Albans, as all the houses in the area are of a slightly better std (but smalled blocks).

Potential rental return of 5%.
Due to the fact of it being slighlty out of the way it has not boomed like sunshine, broadmeadows and the like, but averages 9% historically.

We borrowed $245,000 so it should cost us about $40-$50 p.w before agents fees and expenses to service the home.

i would have liked to have found something closer to a station but i am a recent uni graduate (accountant) and my partner is in the final year of her nursing degree, so we could not afford much more
Could the wise people of the forum please give me some adivce.
(Dont hang me though, be nice.)

Here is the property
http://www.realestate.com.au/cgi-bi...r=&cc=&c=54090083&s=vic&snf=rbs&tm=1253007115

or realestate.com id: 105974771

kind regards

David
 
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Congragulations on your 1st IP. I don't know too much about the Northern and Western suburbs, but it looks like you got a good buy. You now have your foot in the property market. I have a rule that when buying property that I need to be able to handle a sharp rise in interest rates (not including rent) before I consider buying property. As long as you can handle a higher interest rates (at least 8% as interest rates will go up), then it's a great buy.

The house looks like it's walking distance (a long walk) from the train station. I walk 45 minutes to walk, so I would consider the walk to the station as a short walk for you house.

One thing I found handy to have for tenants is lots of storage space for them (IE. a garage/and or shed). It's a selling point for long term tenants and as a landlord you want longterm tenants. Reason I say this is that if they have all there junk in the garage, it's more likely that they won't leave as it'll be a nightmare to move.

My partner and I got our 1st IP November last year in Frankston North. I'm guessing that it has already gone up at least $20,000. We don't regret our decision. I wish you and your partner the best with this property.
 
Congragulations on your 1st IP. I don't know too much about the Northern and Western suburbs, but it looks like you got a good buy. You now have your foot in the property market. I have a rule that when buying property that I need to be able to handle a sharp rise in interest rates (not including rent) before I consider buying property. As long as you can handle a higher interest rates (at least 8% as interest rates will go up), then it's a great buy.

The house looks like it's walking distance (a long walk) from the train station. I walk 45 minutes to walk, so I would consider the walk to the station as a short walk for you house.

One thing I found handy to have for tenants is lots of storage space for them (IE. a garage/and or shed). It's a selling point for long term tenants and as a landlord you want longterm tenants. Reason I say this is that if they have all there junk in the garage, it's more likely that they won't leave as it'll be a nightmare to move.

My partner and I got our 1st IP November last year in Frankston North. I'm guessing that it has already gone up at least $20,000. We don't regret our decision. I wish you and your partner the best with this property.

Thanks for the encouragement.

As far as storage space goes, where the gate is it actually has the frame for a carport, but the vendor didnt have a permit so he pulled it down to sell it. He has left the roller door and roof around the side of the house.
But the neighbour said he is glad that he took it down as it blocked all the light to his kitchen. We told him that we will be putting the carport back up, but because of him we will use a clear roof.

My only other concern (and maybe the gurus can help with this) is that because there are soo many new estates around and surrounding Albanvale that it will surpress the prices in Albanvale as demand (to an extent) can be met by supply and thus a lower equilibrium is mantained (equaling a lower price). But regardless of all other suburbs, if it keeps its average 9% long term even 6% i will be happy (as i know i couldnt save my money that fast).

This really is a starter property, so please dont judge on the basis of a seasoned investor. (My next plan is for a unit/flat somewhere like brunswick or carlton).

Our plans to finish the house (over the 6 months we have to "live" in it for first home buyers purposes are as follows.
(Mind you my other brother in law works in special orders in bunnings so we can get everything below trade prices which helps, and my first brother in law is a builder. Knowing tradespeople helps when you are but a mear humble accountant.

Bathroom Vanity
New Toilet
New lightswitches througout (my brother is a sparky)
New light fittings
Rangehood for kitchen
Paint the inside a bone white
Possibly change the skirting boards.
Doorbell
Colour grout in kitchen wall tiles
Porchlight
New letterbox
Pull up concrete sleepers in front yard and make a somewhat landscaped pattern inc hearty plants that grow and dont req much maint.
Doormat
Carport - in distant future

We have not budgeted for above yet, but looking to complete it all for around 2-3k mark.

Upon doing that the place will be an excellent rental, and given i have 6 months (give the agent 2 months notice) i hope we can pull optimum rent for the area, as most other houses around for rent are not updated, clean or inviting as this.

Sorry for going on, just this has been in the making for some time now, and i ask for any feedback you may give.
 
My concern is a little bit the area. As maybe we would have been better off buying in Deer Park.

My advice for you - do not be concerned.

You bought it, you did it. Biggest hurdle for most people. You are across. No problem.

You are suffering from "buyer's remorse". I guarantee that for the next month, you will see advertisements for better properties in better locations at half the price you paid. Don't worry - this is normal. Cure: don't look at any more ad's, and do NOT do any more capital gain calculations or projections. If you can't help looking at other places that are "better and cheaper" than yours, start your planning right now on how to buy that second property....without selling your first.

Low cost starter houses are great - much less heartache when a tenant trashes it, and you get an insurance assisted renovation..... uhhh...hang on, maybe I wasn't supposed to write that bit.... :eek:

Speaking of which - your main issues when you turn it into a rental - get good landlords insurance (you should have building insurance by now I assume!)

And seeing as you an accountant, make sure you keep a tight grip on the capex and cashflow. Also as an accountant, study the ATO guides on deductibility re renatl properties - some of the stuff in the repair category is better to be held off until the property rents.....

Your plans look fine - skirting boards are the only real question mark for me - unless they are totally stuffed....

Can you get by with a new toilet seat instead of the whole thing?



Cheers,

The Y-man
 
You are suffering from "buyer's remorse". I guarantee that for the next month, you will see advertisements for better properties in better locations at half the price you paid. Don't worry - this is normal.


Very well said Y-man, I wish I did read comments like that 18 months ago.


KK
____________________________
Trust your hopes, not your fears
 
Very well put Y-man.

+Mpire,

your opening post was ambivalent about your decision. It's done. You should feel like a weight has lifted from your shoulders for finally commiting to the market.

Never heard of that suburb however am generally familiar with the precinct. Where else did you think you were going to buy (less than 20 km from a metro CBD) a house with dirt for 285 K?

Sounds OK to me.

Now sit back and let tincture of time and the market do its little trick.

And, stop looking at other properties for sale in that area and the sales figures. Glance at medians once a year if you must, but don't start the self doubt or you'll fry your brain. There will always be others, better, bigger, newer, different colour, etc., etc.........and also more EXPENSIVE !!! :cool:

You have bought an asset that has low liquidity........it is not a tranche of shares that you can sell at the click of a mouse button.....so you don't need to compare it to anything else, nor do you need to know it's value at frequent intervals.

Only when your income situation allows, go and have a re-val and suck out some equity to catapult you into your next one.

Relax and be confident that you've finally entered the market. Congrats on your purchase. :)
 
I lived close to albanvale and now live in melton.
your position is much better than st albans even with out the station. you will have buses near the house that go to the station. property values there are getting strong. when I was looking 2+ years ago it was 200-220 for a house there. the brimbank shopping center is excellent very popular and has great shops target etc and one of the cheapest safeways in melbourne. the market is very strong for renters cause alot of peopel can't afford or dont want to buy. so vacancy rates should be low. you will have more growth there than the newer estate cairlea with all those flash houses. and you are still only 18 or 19 klms from town with good access to the city and the industrial area's of laverton and tullamarine.
cheers
meggala
 
I lived close to albanvale and now live in melton.
your position is much better than st albans even with out the station. you will have buses near the house that go to the station. property values there are getting strong. when I was looking 2+ years ago it was 200-220 for a house there. the brimbank shopping center is excellent very popular and has great shops target etc and one of the cheapest safeways in melbourne. the market is very strong for renters cause alot of peopel can't afford or dont want to buy. so vacancy rates should be low. you will have more growth there than the newer estate cairlea with all those flash houses. and you are still only 18 or 19 klms from town with good access to the city and the industrial area's of laverton and tullamarine.
cheers
meggala

Thanks for the re-assurance!

Good news! We had our finance approved during the week but were still subject to a bank valuation..

It came in today (not that i was really worried). So NO turning back now....

We were trying to buy in broadmeadows (gladstone park side), gladstone park (hard to get anything under 310+), jacana, st albans east.
Because Albanvale is a lil bit away from staion i was worried. As far as the house itself goes its better than alllll of those we were potentially going to buy, so i fine with that. For rental purposes it will be fantastic, low maintenance and not too much of an eyesore.I am relying on the fact that it is a small pocket, with houses of a better std than those of surrounding suburbs and still quite affordable but easy access through both taylors lakes, st albans and the ring road.

Thanks everyone for your contributions.

Just excited to get in and get my hands dirty!
 
Update

Hey everyone!

Just a quick update.

We are currently reno'ing the property.

Another house in the street is for sale, like 5 doors down (5 or 7 Dover St Albanvale). Its identicle to my pty and but not renovated at all and they are asking 290-310 for it. if you look at realestate.com for it you will also see the massive elec pole behind it. So good news on the growth front (as i bought for $280K in Oct 09.

The reno is going well.
We set out with a 3k budget and have done the following.
Light fittings
Switches
New skirting and arcs
Paint
Door handles
Tiled the bathroom, laundry and toilet
New toilet
New vanity, hand rails
Letterbox
Landscaped the front
porch light
sanded and painted the front step orig colour

only item i think i will do (after i do my 6 mnts living it for fhbg) is land new internal doors.

All of the above was possible due to doing it all myself and with the help of my brother in law who is a chippy.

There were preferable areas to buy in instead of this but we were looking in broady, jacana, sunshine etc and the houses we found for $300k still needed another 10K to get them to a standard.

Very hard to find a double fronted brick veneer for under $300K these days.
Ill post some pics of the inside and landscaping when it is finished!

So I am happy with what we have got.

A cheeky thing i have found with Realestate.com is that it lists some Albanvale pty's under St Albans as more ppl are likely to search St Albans as ppl have not even heard of Albanvale before. To be truthful its the same as deer park but quieter and nothing like St Albans (but blocks are smaller).

Enough Waffling on!

I am 24 and still living with the folks.
I am an accountant and will be starting my CA course in May eikes!
The gf and I have been together for 5+ yrs and she is currently finishing her nursing uni course.

I really want to buy another Inv prop. but she wants a house for us!
I know both of us will be earning alot more soon but maybe she is right in that if we buy another IP then look for our own house we may be overcomiting outselves into too much debt!

Thoughts????

Cheers

Dave
 
As an accountant you're in the perfect place to work this out: calculate your likely combined incomes, the loan repayments and likely incomes, and see what works. Don't forget to factor in if you're thinking of kids, as that will restrict income.
 
As an accountant you're in the perfect place to work this out: calculate your likely combined incomes, the loan repayments and likely incomes, and see what works. Don't forget to factor in if you're thinking of kids, as that will restrict income.

Thats a given, and a no brainer, I think its just a matter of lifestyle after this and plans for the future as you mentioned. At this point im going to just start saving another deposit, research and when the time comes we will see.

Dave
 
Hey everyone!

Just a quick update.

We are currently reno'ing the property.

Another house in the street is for sale, like 5 doors down (5 or 7 Dover St Albanvale). Its identicle to my pty and but not renovated at all and they are asking 290-310 for it. if you look at realestate.com for it you will also see the massive elec pole behind it. So good news on the growth front (as i bought for $280K in Oct 09.

The reno is going well.
We set out with a 3k budget and have done the following.
Light fittings
Switches
New skirting and arcs
Paint
Door handles
Tiled the bathroom, laundry and toilet
New toilet
New vanity, hand rails
Letterbox
Landscaped the front
porch light
sanded and painted the front step orig colour

only item i think i will do (after i do my 6 mnts living it for fhbg) is land new internal doors.

All of the above was possible due to doing it all myself and with the help of my brother in law who is a chippy.

There were preferable areas to buy in instead of this but we were looking in broady, jacana, sunshine etc and the houses we found for $300k still needed another 10K to get them to a standard.

Very hard to find a double fronted brick veneer for under $300K these days.
Ill post some pics of the inside and landscaping when it is finished!

So I am happy with what we have got.

A cheeky thing i have found with Realestate.com is that it lists some Albanvale pty's under St Albans as more ppl are likely to search St Albans as ppl have not even heard of Albanvale before. To be truthful its the same as deer park but quieter and nothing like St Albans (but blocks are smaller).

Enough Waffling on!

I am 24 and still living with the folks.
I am an accountant and will be starting my CA course in May eikes!
The gf and I have been together for 5+ yrs and she is currently finishing her nursing uni course.

I really want to buy another Inv prop. but she wants a house for us!
I know both of us will be earning alot more soon but maybe she is right in that if we buy another IP then look for our own house we may be overcomiting outselves into too much debt!

Thoughts????

Cheers

Dave


Hi,

I think you have done well. I got my property in deer park last year and have witnessed growth for sure. Your renos looks great as well.. how did you manage to do that:? i need some thoughts/ideas for my house as well. Good to see that you have started at such a young age..
 
+Mpire_Builder+, I live in Albanvale and have for most of my life and can tell you that Albanvale is as a better suburb than St Albans, Deer Park, Kings Park. Delahey (north of Kings Park) is a semi-new area with Watervale/Burnside heights (west of Kings Park/Delahey) the recently built area. If you need I can point out the 'scummy' parts of St Albans for you. Rockbank middle rd extension to Station rd has also been noted as a long term strategy which will connect Albanvale up with the Caroline Springs (you currently need to go to Ballarat rd to go to Caroline Springs).

Regards,
 
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