Budget $330k Western suburbs Melbourne

Discussion in 'Where to Buy' started by Kayzee88, 15th Jun, 2015.

  1. Kayzee88

    Kayzee88 Member

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    Hi all,

    This is my first post and hoping to get some advice with purchasing my 2nd investment property. My exisiting IP is in Tarneit.

    I have been approved for 330k, but I don't necessarily want to spend that much.

    As a single mum within the lower income bracket, I think something with a high rental yield and steady capital growth would be safest for me. I am interested in a bigger block that I can later develop on.
    I don't mind a property I can do minor renovations on.

    The areas I've been told to look into are:
    - Laverton
    - Hoppers Crossing
    - Werribbee
    - Norlane
    - Corio
    - Ballarat
    - Bacchus Marsh

    I don't think I can afford anywhere else :/

    What are your thoughts?

    Thank you in advance!
     
  2. GreyGhost

    GreyGhost Member

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    Not hoppers crossing
     
  3. DoAndroidsDream

    DoAndroidsDream Member

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    Why not Hoppers Crossing? It has a Uni and is next to Laverton, supposedly a designated growth area and a shopping centre.

    (Genuinely interested... I have no property there but had been looking at it as a potential suburb of interest)
     
  4. Hodge

    Hodge Member

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    I would be looking at Laverton and Ballarat.
     
  5. wobbycarly

    wobbycarly Carpe domus

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    Not Norlane/Corio unless you want your IP to be a crackpot.

    Seriously, the LOWEST socio-economic zone of the area. About 5-7 yrs ago, when you could pick something up for < 200k, maybe... but perhaps I'm prejudiced! :rolleyes:
     
  6. sash

    sash Member

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    True but prices have doubled from 6 years ago from 110-120 to 220-230k

     
  7. Beelzebub

    Beelzebub Member

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    VU Werribee isn't exactly a large campus. Can't imagine there would be many local students vying for your property.

    If you're looking at Geelong I would do some further research on Newcomb, cheap and really close to CBD; but not sure on the data that might support Newcomb. Also, what about Armstrong Creek? Would love to hear peoples thoughts on that area... Lots of land but smack bang in the middle of Torquay and Geelong with 10 mins access to both. Good access to Melbourne, and Geelong doesn't have a high proportion of new housing stock.

    if you're considering the Hoppers area remember that the new Regional Rail Link is about to come on line with new stations in Wyndham Vale and Tarneit.

    My two cents

    Beelzebub
     
  8. GreyGhost

    GreyGhost Member

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    Lol I was not agreeing about Corio by not commenting, just focused my post on hoppers..
     
  9. GreyGhost

    GreyGhost Member

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    Melton is a designated growth area too.. Has been for the last 30 years!
    There is various threads/posts on hoppers on SS you can read.
     
  10. Peter Parker

    Peter Parker Member

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    The latter two probably imply an older area, eg Hoppers, Werribee or Wyndham Vale.

    Wyndham Vale is a bit remote from services but the northern part is near Manor Lakes shops and the new station. However houses get newer and blocks get smaller as you go further north. Note that the new Wyndham Vale Station will get twice as many trains as Tarneit during peak periods.
     
  11. Tranquilo

    Tranquilo Member

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    Go hamlyn heights or herne hill
     
  12. wobbycarly

    wobbycarly Carpe domus

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    That's true. But I have trouble seeing how it will do the same over the next 6 years. :eek:

    Maybe it's this lack of vision that's holding me back...? :D
     
  13. sash

    sash Member

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    Mate look at the ethnic groups going in there...are they commercially minded...if so that will change the area.....forget the rose colored view of Oostralyaa past...things are changing.

    I was in the Northern corridor of Melbourne where people in Melb won't go..I was a kid in candy store...would have bought more if I could find land which titles in the next 3 months. Does not exist at the moment...though there is land everywhere...developers are releasing only 30-100 blocks every 3-4 months...

     
  14. TNT

    TNT Member

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    Hi sash

    What suburbs are you referring too?
     
  15. cimbom

    cimbom Member

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    How big is your deposit? Maybe keep adding to that and get something smaller a bit closer in. Cash flow is nice but in these kinds of suburbs, you just need one crap tenant to trash your IP before you get really out of pocket and lose any finanical benefit you thought you had by buying there. The yield reflects this risk. We purchased our first IP in a low socioeconomic area for the perceived high yield but I really regret it now as we have lost a lot of money on it and the value doesn't look to be increasing anytime soon. It is looking to be very difficult to sell too.
     
  16. Kayzee88

    Kayzee88 Member

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    Thank you for your reply.
    That really got me thinking if I really want to risk getting an IP in a low socioeconomic area.
    My deposit is 50k.
     
  17. Kayzee88

    Kayzee88 Member

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    Thank you for your response.
    I just saw the article on Realestate.com.au that Tarneit tops the national top 10 list for best growth suburbs under $550k.
    Very pleased with that and might consider second IP there.
     
  18. Beelzebub

    Beelzebub Member

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    Have you considered diversifying? It might do well but you carry the risk of having all your eggs in the Tarneit basket.

    Any particular reason you are limiting your search to the West? Areas in the North are also affordable. Or interstate?

    Beelzebub
     
  19. Kayzee88

    Kayzee88 Member

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    Yes, i would definitely consider other areas. I guess I am considering Tarneit again because it's what I know. I still need more info and research on other suburbs.
     
  20. evisional

    evisional Member

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    With the budget of $330K, you may look at Frankston where a lot infrastructure is growing. High capital gain potential. I cannot see Western suburbs much grow in the long term.