Broadmeadows/Deer Park/Glenroy/Cragieburn IP

[psylence]

Looking to buy a IP 3 bedroom brick home in Melbourne with a long term plan of holding approx 20 years. Budget is 410k but ideally would like to spend around 370k.

Broadmeadows only 16km from cbd but not a lot of infrastructure and lower socio economic, Glenroy similar. Not a lot of recent population growth.

Craigieburn further north seems to be alot of undeveloped land around.

Deer park out west could also be surrounded by a descent amount of undeveloped land but potential for more population growth?

Any recommendations appreciated.

 

[The Y-man]

What are the criteria driving your search? Why the 4 you mention, and not anything "in between"?

The Y-man

 

[psylence]

What are the criteria driving your search? Why the 4 you mention, and not anything "in between"?

The Y-man

The 4 mentioned are areas that I feel have the potential for CG in the long term however I welcome other suggestions. I am interested in a suburb that may be undervalued in the long term and in my price range, would also prefer a house on 500m+ over a unit/apartment/townhouse thanks for reply.

 

[strongy1986]

Looking to buy a IP 3 bedroom brick home in Melbourne with a long term plan of holding approx 20 years. Budget is 410k but ideally would like to spend around 370k.

Broadmeadows only 16km from cbd but not a lot of infrastructure and lower socio economic, Glenroy similar. Not a lot of recent population growth.

Craigieburn further north seems to be alot of undeveloped land around.

Deer park out west could also be surrounded by a descent amount of undeveloped land but potential for more population growth?

Any recommendations appreciated.

I'm not sure why you are looking at population growth??
An established suburb will only get growth when the bulldoze and build apartments / units
The areas with the highest population growth will more than likely be the worst to invest in

 

[The Y-man]

The 4 mentioned are areas that I feel have the potential for CG in the long term however I welcome other suggestions. I am interested in a suburb that may be undervalued in the long term and in my price range, would also prefer a house on 500m+ over a unit/apartment/townhouse thanks for reply.

Ok, fair enough.

The Y-man

 

[GreyGhost]

You may want to look at Dallas, broadmeadows, meadow heights, coolaroo, upfield, jacana.
I wouldn't put Glenroy in the same boat.
Houses on the "bad" (hadfield/golf course) side of pascoe vale road are fetching in excess of 600k, while large blocks on the oak park side are getting in excess of 800k.
Like many areas, 1 or 2 suburbs across/down can make a big difference in price and demographics.

Looking to buy a IP 3 bedroom brick home in Melbourne with a long term plan of holding approx 20 years. Budget is 410k but ideally would like to spend around 370k.

Broadmeadows only 16km from cbd but not a lot of infrastructure and lower socio economic, Glenroy similar. Not a lot of recent population growth.

Craigieburn further north seems to be alot of undeveloped land around.

Deer park out west could also be surrounded by a descent amount of undeveloped land but potential for more population growth?

Any recommendations appreciated.

 

[GreyGhost]

The 4 mentioned are areas that I feel have the potential for CG in the long term however I welcome other suggestions. I am interested in a suburb that may be undervalued in the long term and in my price range, would also prefer a house on 500m+ over a unit/apartment/townhouse thanks for reply.

Not sure how a suburb can be undervalued long term. Based on its current fundamentals, infrastructure and amenities it is what it is. I wouldn't buy in broady just coz it's cheap and has certain block sizes.

A unit in say moonee ponds or pascoe vale may outperform a 500sqm block in broady long term. Land is land I agree and I remember in 1997 there were 3 commission style houses in a row for sale in broady for combined price of 85k. Does seem cheap and good gains, but this area suffered during the gfc and the demographics have been hurting subsequent growth.

Also in the suburbs you have mentioned, a long term but and hold is okay, but due to the amount of developer activity it is hard to compete with them for just an owner occ, but also in the short to medium term I see an oversupply of townhouses and units in the area.

I have written posts on Glenroy before. Prices for the 800sqm+ blocks are back to where I expected them to be, there was opportunities a few months ago when the council regs were up in limbo, developers and builders were uncertain and not buying. Sam blocks 6 months later achieving 200+ extra.

Dude if you are serious about this area PM me and I will help you out in any way I can, I grew up in the area, worked in the area and went to school in the area (I'm 29yrs old). Love to help where I can..

 

[jpcashflow]

Looking to buy a IP 3 bedroom brick home in Melbourne with a long term plan of holding approx 20 years. Budget is 410k but ideally would like to spend around 370k.

Broadmeadows only 16km from cbd but not a lot of infrastructure and lower socio economic, Glenroy similar. Not a lot of recent population growth.

Craigieburn further north seems to be alot of undeveloped land around.

Deer park out west could also be surrounded by a descent amount of undeveloped land but potential for more population growth?

Any recommendations appreciated.

Hi,

In relations to the areas you have mentioned I would be staying away from Broadmeadows and Cragieburn:

Cragieburn:
There is allot of vacant land that still has to be developed and every 6 months a new estate is popping up.
I have also noticed that there is a high vacancy rate as there have been allot of investors who bought turn key properties where they where guaranteed rent for the first two years. On the 3rd year not so pretty .
Crime rate: Its starting to become a bit of a problem and the same thing is happening to Caroline Srpings.
Long term capital growth: Very limited as this area attracts more first home buyers then anything else.


Broadmeadows:
One area to stay away from!!!
Numbers might look good but the reality is this: The area is like the bronx, tenants dont usually pay on time or never pay and houses tend to get trashed.
Just stay away lol

 

[elsLan]

Looking at your questions from an investment and tenancy point of view-
Investment wise, the areas you mentioned often have high vacancies, lower rental returns and a lot of issues sourcing good quality tenants.

Just a comment/thought- You would be better off purchasing a smaller inner north property in the vicinity of Brunswick West or Coburg or Pascoe Vale. More stability in rental return and much easier to tenant.
However, your goal is for a 3-4 bed home on a decent parcel of land that is affordable

However, to answer your direct question- Glenroy would be the better choice in terms of rental return. Even Fawkner would be a good option.
There's a lot of commission housing in Jacana, Broadmeadows and Dallas and it's not very profitable or attractive to the better scope of prospective tenants.

 

[DoAndroidsDream]

Just to add a different perspective here.

I have an investment in Broadmeadows, which i bought 12 months ago and I secured a tenant within a couple of days. To counteract some of the views expressed so far - the tenants have always paid their rent on time and haven't trashed the property. I bought in the area for a couple of reasons, including the low vacancy rate (1.6%), higher yield (5.85%), proximity to shopping centre/airport/development of train station, cheaper entry than Glenroy, sign posted as a principal activity centre in Melbourne 2030, bought below the median price and because of long-term growth.

Regardless of what people may think about a suburb because of it's history, it really comes down to your research, strategy, what works for YOU and what the numbers tell you. I never considered Broadmeadows before i started researching. There are so many examples of suburbs with stigma (eg. Deer park) that have made people a lot of money here.

Do I think Broadmeadows is right for you? I have no idea but why don't you start looking council plans, hit the ground and look at the numbers. Remember, if it's an investment, you won't be living there.

 

[tone1]

If you're keen on the mid-to-outer north, I'd try to get into Fawkner, although you might need to stretch the budget.

 

[macdub]

got the IP in Broady..rent is always on time and property has never been thrashed..

 

[psylence]

Thanks for everyone's opinions I appreciate them