Buying first home in Brunswick

[willv]

My wife and I have rented in Brunswick, VIC for years now, and we would like to enter the market by buying a unit with 2 or 3 bedrooms. We're looking at suggestions on what kind of units to look for. Our plan is to live in the unit for 5-7 years and then convert it into a IP, and upsize.

We are looking at spending up to 500k and we have 20% deposit. I'm aware that it might not be possible to get a 3 bedder at that price. A few auctions in Brunswick West for 3 bedroom units closer to public transport have been going for 600+.

Some units we've seen:
http://www.realestate.com.au/property-apartment-vic-brunswick-116966619
http://www.realestate.com.au/property-apartment-vic-brunswick east-117344059

We like the area but we would like to hear about other areas where we could buy at that price and get a decent capital growth over the next 7 years, even though capital growth is not the main criteria.

Also, I notice the Moreland City Council approved several new residential growth areas. I understand the unit market is already oversupplied, but I'm trying to understand the impact of the new planning in the areas demarked for 3 a 4 storey development.
http://www.morelandplanning.com/zones/

 

[Jake Milne]

Hi Willv,

Definitely stick to a 2BR apartment/villa. Not only will you find better stock at the price point you'll also be buying a unit type that is more sought after by tenants in that market.

Reasonable examples:
http://www.realestate.com.au/property-apartment-vic-brunswick-114440231
http://www.realestate.com.au/property-villa-vic-brunswick-116343455
http://www.realestate.com.au/property-unit-vic-brunswick-115101223
http://www.realestate.com.au/property-unit-vic-brunswick-116847727
http://www.realestate.com.au/property-apartment-vic-brunswick-116029991

The issue with Brunswick is waiting for quality stock to become available as many 1960's/70's units are terrible. Take a walk down De Carle St and you'll see what I mean.

 

[willv]

Hi Willv,

Examples:

Are these examples of what you consider terrible 60's and 70's stock, or are suggestion of good buys in Brunswick?

 

[Jake Milne]

They're reasonably good properties, they have short falls but it's what you'll get for $500.

I'll reword my last post to clear any confusion.

 

[SamL]

I don't know how much capital growth Brunswick will have in it for 2 bedroom apartments. It has gone gangbusters over the last 10 years and seems to be more expensive than South Yarra these days. I am renting on Albert Street between Lygon and Sydney road and have lived in/around Brunswick for the last 4 years or so and like the area but don't think I would buy a 2 bed apartment. I would only buy if I could get a townhouse/land but that kind of stuff is 800+. Have had 2 bed room newer apartments next door to us go for 600+. Seems crazy to me when you can rent one for $350-$400 a week.

 

[Jake Milne]

The predictions look good for apartments in Brunswick...

 

[Chris B]

My wife & I were recently in a similar situation but came to the conclusion that we couldn't afford a property we would be happy to live in, (in the Brunswick area) that is also likely to make a good investment.

Most of the decent apartments we could afford have high body corporate fees and/or are in large complexes, which I wanted to avoid from an investment perspective.

There were a couple of villa units that we seriously considered but either the kitchen, living room or bedrooms were too small for us to be happy living in them for long.

The other option were some decent properties in Brunswick West but they were too close to the noise of Citylink (and inconvenient for public transport).

You might be better off either continuing to rent in Brunswick and buying a good investment property in a cheaper suburb or considering suburbs a bit further out that you would still be happy to live in (Preston, Coburg, etc).

We went with the second option, moved in just over a month ago and are happy with our decision so far.

 

[Beanie Girl]

Half-billion dollar overhaul for Preston Market

Came across this piece of news about Preston today in The Age.
Developer applying to build 28 storey apartment blocks with 1500 new units at Preston Market. Darebin Council will have to sit in August to review amending the current height limit of 10 storeys.
That seems to be a lot of apartments 10km from the city.
Anybody knows of any other big developments like this?

Preston Market, one of Melbourne's oldest traditional markets, is slated for a radical overhaul costed at half a billion dollars.

Proposals to build 28-storey apartment blocks on the market site, comprising 1500 new dwellings, have been lodged with Darebin Council, seeking an exemption to the current 10-storey height limit in the area.

Developers Salta Properties and project partner Medich Corporation proposed changing building height limits in order to build residential towers "which will respond to the forecasted growth of the municipality, and will provide greater housing diversity and housing sustainability for the area", according to documents prepared for the council.
The development would include apartments.

The plans for the Preston Market include a piazza, outdoor dining areas, and an office precinct as well as apartments to complement the current fresh food market.

..............

Construction costs for the renovations are estimated at 550 million, according to council documents

...............

Read more: http://www.theage.com.au/victoria/h...ston-market-20140701-zsshp.html#ixzz36HSkSoRn

 

[poordeveloper]

If you're considering Brunswick West you can find half decent houses for not a lot more.

http://www.realestate.com.au/property-house-vic-brunswick+west-116044903
http://www.realestate.com.au/property-house-vic-brunswick+west-114560839
http://www.realestate.com.au/property-house-vic-brunswick+west-114644147

OK, that last one is a bit of a renovators delight.

Moreland council have revised their zoning and submitted it for review - from what I understand it hasn't been approved yet, although the deadline has passed. It's pretty conservative (lots of NRZ/GRZ) but I don't know that it will have a huge effect either way on apartment growth - since they will continue to spring up around activity centres.