Hey Everybody,
As the thread title suggests, wanted to gauge peoples opinions on buying in already established areas. More so in the inner North of Melbourne.
In particular, my girlfriend is extremely keen on purchasing our next property in Fitzroy / Fitzroy North (Melbourne). We moved here about 2 years ago and Fitzroy was the first area we really got to know. We have always lived in/around the area and we currently live in Collingwood.
I have searched these forums and the general consensus seems to be that Fitzroy is overpriced. Statistics seem to indicate that Fitzroy has achieved average growth year on year, but to buy in these areas you need at least $500K for a smallish 2 bedroom unit. Gross rental yield seems to be around 4% - 5%?
At $500K, just doesn't seem like you get much at all, whereas, you could move one or two suburbs further and get a lot more. This is almost double the cost of our first property which was a 3 Bed, 2 Bath, 2 Car house!
Are there any benefits in purchasing in areas such as Fitzroy?
I should mention that emotion will form part of our decision making process this time around. This place will be our PPOR. We intend to live in it for the next 2/3 years before turning it into an IP. This is similar to what we did with our first property in Brisbane prior to our move (albeit accidentally). This property is now an I.P and our long term goal is to continue with a buy and hold strategy.
So part of me wants the numbers to also stack up as a future I.P.
As the thread title suggests, wanted to gauge peoples opinions on buying in already established areas. More so in the inner North of Melbourne.
In particular, my girlfriend is extremely keen on purchasing our next property in Fitzroy / Fitzroy North (Melbourne). We moved here about 2 years ago and Fitzroy was the first area we really got to know. We have always lived in/around the area and we currently live in Collingwood.
I have searched these forums and the general consensus seems to be that Fitzroy is overpriced. Statistics seem to indicate that Fitzroy has achieved average growth year on year, but to buy in these areas you need at least $500K for a smallish 2 bedroom unit. Gross rental yield seems to be around 4% - 5%?
At $500K, just doesn't seem like you get much at all, whereas, you could move one or two suburbs further and get a lot more. This is almost double the cost of our first property which was a 3 Bed, 2 Bath, 2 Car house!
Are there any benefits in purchasing in areas such as Fitzroy?
I should mention that emotion will form part of our decision making process this time around. This place will be our PPOR. We intend to live in it for the next 2/3 years before turning it into an IP. This is similar to what we did with our first property in Brisbane prior to our move (albeit accidentally). This property is now an I.P and our long term goal is to continue with a buy and hold strategy.
So part of me wants the numbers to also stack up as a future I.P.