Altona Meadows

[Lilli]

Hi,

My only IP is in Frankston. Does anyone have any thoughts on Altona Meadows - houses seem quite cheap considering the location near the water / wetlands and location to the city. What are rents like in the area? Does anyone have any better suggestions for more promising areas in the vicinity?

Thanks
Lilli

 

[Harris]

Hi Lilli

I dont have much know how of Altona Meadows however we have a local expert in Jingo (Jason) who could help you with that.

Infact he did post quite a bit of info about AM lately.. perhaps do a search on the forum.

Good luck

Harris

Hi,

My only IP is in Frankston. Does anyone have any thoughts on Altona Meadows - houses seem quite cheap considering the location near the water / wetlands and location to the city. What are rents like in the area? Does anyone have any better suggestions for more promising areas in the vicinity?

Thanks
Lilli

 

[newhigh]

Yes, I did the due diligence on th area and like it although over 10 years I think you'd see frankston and even lowly Weribee outperform, mainly as they have come off such low bases. if you like the area, consider pt cook? newer and quite good value.

 

[our obsession]

Lilli:

What are rents like in the area? Does anyone have any better suggestions for more promising areas in the vicinity?

Thanks
Lilli

Lilli did you know if you ever wanted to compare (advertised asking) house prices to (advertised asking) rent prices you can open two windows, eg:

1. Houses for sale Altona Meadows

http://www.realestate.com.au/cgi-bin/rsearch?id=altona+meadows&a=qfp&cu=fn-rea&t=res&q=Go

Compare to, say, similar streets, build, locations of rents:

http://www.realestate.com.au/cgi-bin/rsearch?id=altona+meadows&a=qfp&cu=fn-rea&t=ren&q=Go

Also, I have Median House Prices for 1994-2005 (courtesy of Victorian Valuer-General), showing price gains over the 10 year period:

Note, this isn't Altona Meadows I have only surrounding suburbs, Altona, Altona North and Laverton (don't have Point Cook).

Altona: 1994 Median House Price: $113,500.........2004 MHP: $330,000......so a change of: 191%

Altona North: 1994 MHP: $104,500.........2004: $284,000..........172%

Laverton: 1994: $78,000.................2004: $215,000............176%

The top performing suburbs for southwest Melbourne 1994-2005 were:

Spotswood........Change bw 94-04: 232%.....Growth PA: 12.8%......Change 02-04: 9%.......2004 median price being: $355,500

Newport:............94-04: 216% ......Gwth PA: 12.2%......03-04: 2%....04MHP:$370,000

Williamstown North:.....209%...........12%...................8%...............$417,500

Altona: ..........191%.......................11.3%..............minus 3%..........$330,000

Williamstown:...180%....................10.9%.................minus 5%.........$530,000

Lilli, this doesn't necessarily mean Altona Meadows showed these growth figures. Just pointing out some interesting resources for you, along with all your other due diligence research, this can be handy.

More recent Victorian Valuer-General Statistics can be obtained from:

http://www.nre.vic.gov.au/Land/lcnl...01DAC6F-4FF5582EDD1DD6B9CA256E5F0014C0EE?open


In particular; (excerpt):

"I require median prices over the last 10 years. Is this information available?

Yes, this information is available by the purchase of the publication Property Sales Statistics - A Guide to Property Values in Victoria. For a copy of the latest edition on-line or email [email protected] or phone (03) 8636 2456.

Where can I research trends, property prices and forecasts of residential, commercial, industrial and rural property sales statistics?

Through Property Information and Sales (PRISM) for Subscribers.

Where can I purchase the publication “A Guide to Property Values”?

You can order your copy on-line or email [email protected] or phone (03) 8636 2456.

Can I access information on the Internet about the Annual Property Sales Statistics Publication and the histograms report?

Yes, If you are a registered Landata subscriber or email [email protected] ."

Wait there's more:

Option 3

http://www.propertyvalue.com.au/faq.php

In particular; following excerpt:

**About PropertyValue Property Reports

From where do you source your property information?

Our property information is sourced from the Valuer General's Office in each state.
The Valuer General's Office is an independent State Government organisation that keeps records of all property sales data within each state. The PropertyValue Postcode Profile reports contain the most up to date demographic data compiled from a variety of sources including; Veda Advantage, the Australian Bureau of Statistics, NSW Bureau of Crime Statistics and Research, Victoria Police Statistical Service Bureau, the Queensland Office of Economic and Statistical Research, Australian Federal Police, and the ABS Vehicle census.

How current is the information?

The PropertyValue database dates back as early as 1990 and is updated monthly using fresh data from the Valuer General's Office in each state. The demographic data used in the PropertyValue reports is from the latest census. Where possible (e.g. Age) the data has been projected forward to report current demographic trends.

How accurate is the information?

The PropertyValue data is derived directly from the Valuer General's Office. The data from the Valuer General's Office is refreshed monthly, ensuring PropertyValue has the most up to date and accurate sales history available. The data models used by PropertyValue to generate our reports have rules which allow us to detect abnormal values in the data and remove them from calculations. Abnormal values include extremely high or low property prices in certain areas and invalid addresses. By removing such abnormalities, we are able to maximise the accuracy of our information. We also use median values rather than averages which further enhances the integrity of the data.

What geographical areas do you provide reports for?

The PropertyValue property reports currently cover NSW, ACT, VIC, SA, WA and QLD. Plans are underway to expand our service to include the provision of such reports for all Australian states.**


Specifically: (quoting article).

Have fun investing.

 

[jingo]

There seems to be a shortage of properties in Altona Meadows at the moment - both rental and for sale. I personally like the suburb - but I live here and have one IP here, so may be slightly bias. The area increased by 14% last year.

The pros:

1) Very close to Altona and the beach. (2-3 minute drive max).

2) Very close to the Laverton Train Station (I drive there every morning to drop my wife off - and it is a 2 minute drive from our house). Zone 1 tickets here. Trip to the city takes about 45 minutes on the train.

3) Excellent access to the Freeway, and off peak can reach the city in 15 minutes travelling at legal speeds!

4) Close to Laverton and Laverton Nth which has many factories in the area. Plenty of employment.

5) The area is quiet to live in, and has a great shopping centre (Central Square) - also a recently built modern library.

6) Population growth this side of the city is nothing short of amazing. I have lived here for 10 yrs. When I first moved here there were no traffic jams. Now, they are a daily occurence! (unfortunately, but it is good for property prices!).

7) I don't have factual evidence for this, but just a hunch. I believe most people around here own their homes - due to them being so cheap, and will not be affected by interest rate rises. Many people around here are investors - shares and property. They own holiday homes on the coast (Torquay, Lorne, Anglesea, etc), and inner city houses. (Like me - not the holiday home though, unfortunately!).

Cons: Can only think of two!!

1) Western Suburbs and Stigma thereby associated with the Western Suburbs. Although I believe this is dissipating with the rise of house values in the city and surrounding areas. Many more professionals are moving to PT Cook (close by) and also Altona Meadows. They tend to travel into the city on the train.

2) Petrol prices are rising - may make travelling to the city more expensive! (But see point No 7 under Pros - don't think it will bite too hard here!).


If I was ready to buy, I would consider this area again. I have my PPOR here, and 1 IP. The IP is a 3 bedroom 1960's brick home. Bought for $228,000 in 2004. Valuation done last week for $285,000. Average 7% growth p/a. (But I bought at the peak of the previous boom I guess you could say!).


Our own home is a 4 bedroom place. We built it for $130,000 (land and building) and it would be worth between $320,000 and $350,000. Waiting for the val on this one to come back. That represents growth of 10% p/a since 1998.

I would buy anywhere around Kiora street - although streets such as Roseberry, and surrounding streets near the Altona Primary School are very highly sought after. There are more trees in this area, and it is more established than the rest of the suburb.

The streets behind Central Square are also popular. The courts in particular.

Skeleton Creek is nearby, and there are bike paths, and walking tracks.

Can't think of too much wrong with the area actually. We have lived here since 1998. Have considered moving, but can't work out a reallly good reason to do so apart from the 'snob factor!'.

The area also gets fresh breezes from the sea, and you cannot smell the industry like you can in Yarraville and Altona North. Doesn't get any smells like those in Altona either!

Tenants - we have had the same single mum in our place since we bought it. Never misses a payment. Although she complained when we put her rent up at the start of the year. (Still way too low for the area - she is going to get another increase). She is only paying $220 week, and really should be paying $260. We will bump it up to $230 in June, and $240 in December. I believe there is rental demand here, and she will not be able to find another similar property for under $240 per week.

This house sold very cheaply for $267,000 last weekend and is similar to our IP - don't know why it sold so cheaply, (may have needed work - not sure) but it would have been a good buy! I was worried until we got our valuation for our IP back 2 days after this sale. Came back at $285,000.

http://www.realestate.com.au/cgi-bin...&tm=1203674011

The agent I spoke with who sold this property rekons that the ripple effect is going to increase this year. He told me not to sell. He thinks that people have been priced out of Altona Nth, and Altona, and are now looking here. (I agree with him). Houses in Altona Nth are over $400,000 and increased by a massive 40% last year. I believe there is room for more growth in Altona Meadows.

Laverton is also hot property at the moment.

Regards Jason.

 

[Lilli]

Thanks Jingo, great info.

Are people buying IP's at the moment?

I am keen to buy our 2nd IP however are not sure when is the right time with all the 'drama' in the economy at the moment. We have enough equity to purchase now.

What signals should I be waiting for?

I would greatly appreciate any feedback.

 

[investwest]

Thanks Jingo, great info.

Are people buying IP's at the moment?

I am keen to buy our 2nd IP however are not sure when is the right time with all the 'drama' in the economy at the moment. We have enough equity to purchase now.

What signals should I be waiting for?

I would greatly appreciate any feedback.

Hi, and hi Jingo, I was amazed by the house in High street Altona Meadows going for such a low price, but the auction half an hour later in Kiora, a two bedroom termite infested weather board went for a good price. I live in Altona Meadows also, and also have an investment property in Kiora which we bought in 2005 for $225,000, it would now be worth between 290,000 and 300,000 as it is a larger house than most in the area, owner builder, built in 85. We were really lucky to get as it had been sold but the buyers finance fell through, they had offered $235,000. We are renting it out for 230 per week and like Jingo said, we could probably get 250 to 260 but we have excellent tenants so we hold off putting it up. Those few streets off central ave are still excellent value for a three bedroom brick veneer, you are walking distance to the the last zone 1 in the west, three or four k's from the beach and Pier street, which is becoming really trendy. We live on Waratah Drive which pretty much backs onto the creek, and the sealed track goes all the way to both Altona and Williamstown beach, it"s beautiful. Everyone in our street, but for us have previously lived in Altona Meadows, and dont want to move. This what I find that we people move here, they stay. We were really lucky to have bought our block of land in 2000 for $76,000 now you would pay more than $230,000 for a similar block in this area. I think, and I am sure jingo will agree with me, that Altona Meadows is highly undervalued, where else only 15 minutes from the cbd can you be hanging out your washing and have swans, pelicans and ducks fly over your head, or find frogs in your swimming pool? we moved down from Yarraville, we would never go back, especially now that we have kids.

 

[hercules500bc]

I must say I do not have any IP in altona meadows but 6 years ago a real estate agent friend of mine told me to also buy land in waratah drive, to which I did, and do not regret it one bit as the land value has in fact skyrocketed to $230K+. It is a pocket in altona meadows which is on the up and yes altona meadows as a whole is undervalued ---for now. I spoke to my agent friend who said if you can but an ip, buy it before williams landing takes off as prices will continue to rise due to the ripple effect through altona and williams landing. My agent friend told me poeple are looking at altona meadows as a place to raise families with kids and its close proximity to the beach and 17kms out of CBD is the reason for it. People in the east are waking up to it slowly.

 

[jingo]

Thanks Jingo, great info.

Are people buying IP's at the moment?

I am keen to buy our 2nd IP however are not sure when is the right time with all the 'drama' in the economy at the moment. We have enough equity to purchase now.

What signals should I be waiting for?

I would greatly appreciate any feedback.

Hi Lilli,

Everyone will have a different view on this, and in some ways it comes back to your personal situation. If you can hold another IP comfortably, with the possibility that it may be worth less than you paid for it in the event of a downturn, then you could buy now.

I personally am waiting for prices to drop, and for forced sales. I am also wanting to buy something that I could develop (eg old house on large land) with a decent yield. I may need to wait a while before I can find a suitable property, but I am willing to wait.

I don't know if Altona Meadows will continue to rise in the short term? What are other's thoughts?

Regards Jason.

P.S. Great to see Altona Meadows finally being recognized for the great spot it is. I knew it would happen eventually!

 

[investwest]

I must say I do not have any IP in altona meadows but 6 years ago a real estate agent friend of mine told me to also buy land in waratah drive, to which I did, and do not regret it one bit as the land value has in fact skyrocketed to $230K+. It is a pocket in altona meadows which is on the up and yes altona meadows as a whole is undervalued ---for now. I spoke to my agent friend who said if you can but an ip, buy it before williams landing takes off as prices will continue to rise due to the ripple effect through altona and williams landing. My agent friend told me poeple are looking at altona meadows as a place to raise families with kids and its close proximity to the beach and 17kms out of CBD is the reason for it. People in the east are waking up to it slowly.

It willl be interesting to see what happens with Laverton in regards to Williams Landing.
Was it a Mancini that advised you to buy on Waratah?

 

[hercules500bc]

It willl be interesting to see what happens with Laverton in regards to Williams Landing.
Was it a Mancini that advised you to buy on Waratah?

No it wasnt Mancini (although they did sell me Waratah) - I believe he used to work for a firm called Advanced.

 

[casper007]

Uncertainty goes both ways ... the sellers out there are hearing the same messages (even from their selling agents) about prices possibly coming down.

Uncertainty creates opportunity in my book ... Do the research and make crazy cash offers well below asking ... you just never know the motivation of the seller.

As the old saying goes ... "Best time to buy RE was yesterday"

 

[hercules500bc]

Quick Sale Land 115 Waratah

Well a block of land at 115 waratah drive altona meadows 650sq mts sold last week for $260,000. If you add a cost of a house approx 200,00for a single or approx 300,000 for a double, then the area is on the up isnt it.

 

[sivakumar_sr]

I do agree that it is going up. I went for the first open for inspection and when I went to the agent to put my offer. The house was sold already. This happened to me few times which indicates that there is stong demand in this area. Especially the demand in Laverton and new Williams landing, New train station and new exit, plus new Point cook shopping centre increases the deamand in nearby suburbs. Finally I bought one IP in Altona Meadows last week after first open for inspection.

 

[investwest]

You're joking! fantastic

Well a block of land at 115 waratah drive altona meadows 650sq mts sold last week for $260,000. If you add a cost of a house approx 200,00for a single or approx 300,000 for a double, then the area is on the up isnt it.

That's amazing, we paid $76,000 for the same size block on what we believe (arguably) to be the nicest part of Waratah, back in 2000, yay.

 

[Posnow]

williams landing

Hi Lilli,
I just bought a block in the first release at Williams Landing and will build on it as soon as the titles are through at the end of the year (only outlay 15K now and remainder for the block then). I have a couple of older IPs and one which I built and, of course, newer properties are so much easier and there's the big stamp duty savings, depreciation, etc. I had a bit of a look at some old places in Laverton, but went for Williams Landing in the end.
Cheers,
Posnow

 

[ryan_mel]

Hi, and hi Jingo, I was amazed by the house in High street Altona Meadows going for such a low price, but the auction half an hour later in Kiora, a two bedroom termite infested weather board went for a good price. I live in Altona Meadows also, and also have an investment property in Kiora which we bought in 2005 for $225,000, it would now be worth between 290,000 and 300,000 as it is a larger house than most in the area, owner builder, built in 85. We were really lucky to get as it had been sold but the buyers finance fell through, they had offered $235,000. We are renting it out for 230 per week and like Jingo said, we could probably get 250 to 260 but we have excellent tenants so we hold off putting it up. Those few streets off central ave are still excellent value for a three bedroom brick veneer, you are walking distance to the the last zone 1 in the west, three or four k's from the beach and Pier street, which is becoming really trendy. We live on Waratah Drive which pretty much backs onto the creek, and the sealed track goes all the way to both Altona and Williamstown beach, it"s beautiful. Everyone in our street, but for us have previously lived in Altona Meadows, and dont want to move. This what I find that we people move here, they stay. We were really lucky to have bought our block of land in 2000 for $76,000 now you would pay more than $230,000 for a similar block in this area. I think, and I am sure jingo will agree with me, that Altona Meadows is highly undervalued, where else only 15 minutes from the cbd can you be hanging out your washing and have swans, pelicans and ducks fly over your head, or find frogs in your swimming pool? we moved down from Yarraville, we would never go back, especially now that we have kids.

I bought a two-bedroom weather board house on Kiora street 2 months ago for $255K. Although some friends of mine worry about a little bit of the price, I'm quite happy with it, and I think I can easily extend to a 4 bedroom house, or even put another 2 bedroom unit in the back. What's more, the house had been rented out two weeks before I settle for $250/w. Not bad a return, so I just postpone my reno or extension plan to the day the current tenant wanna move out.

I love the area too. so my plan is to move in this area after I finish the reno or extension.

 

[investwest]

Hi, I went to the auction.

Hi, congratulations. I was at the auction, and I always wonder about the buyers and who they are, what they are about.
I didnt look inside, but it's very cute on the outside, heaps of potential, what are you going to do with it? We have an investment just down the street from you.