Buying in Melbourne for first IP - Footscray

[markfrazer89]

Im looking at buying an investment property in Melbourne for around 350-450 max.
I have been looking at footscray, as I have been reading good things about what it might be worth in the next decade or so, I would be mainly after capital gain as apposed to yield.

Is there a good area to be looking at or would there be better out there?

Not sure with the vacancy rates, but would hope almost always have a tenant in there.


I am very keen to hopefully have multiple IP's in the next decade. Just have to get my foot in the door.

 

[James Bond]

Im looking at buying an investment property in Melbourne for around 350-450 max.
I have been looking at footscray, as I have been reading good things about what it might be worth in the next decade or so, I would be mainly after capital gain as apposed to yield.

Is there a good area to be looking at or would there be better out there?

Not sure with the vacancy rates, but would hope almost always have a tenant in there.


I am very keen to hopefully have multiple IP's in the next decade. Just have to get my foot in the door.

I reckon Footscray would be a great CG prospect - 6kms from CBD and comparatively cheap. Quite DINKY and trendy. Not sure about yield though and I think your budget may be a bit slim?

JB

 

[markfrazer89]

Yeah theres a lot of improvements happening so yeah hopefully it will do well.

I know the budgets abit cheap, but I have seen a couple of small houses going for 380-450..

But could also pick up a unit for abit less then that, would rather a house though.

As a 23 year old, I am jus really starting to think of the future, and would love to set my future family up for life.

 

[James Bond]

Yeah theres a lot of improvements happening so yeah hopefully it will do well.

I know the budgets abit cheap, but I have seen a couple of small houses going for 380-450..

But could also pick up a unit for abit less then that, would rather a house though.

As a 23 year old, I am jus really starting to think of the future, and would love to set my future family up for life.

Consider Sunshine?

JB

 

[Aaron_C]

People have been saying Footscray is next soon......for decades.

 

[markfrazer89]

Nah haven't considered sunshine, but it is abit cheaper and nicer looking then footscray, I'm going to research that suburb and see what it's like. Thanks for the recommendation.

 

[strongy1986]

Nah haven't considered sunshine, but it is abit cheaper and nicer looking then footscray, I'm going to research that suburb and see what it's like. Thanks for the recommendation.

For what it's worth i reckon footscray is a real **** hole. 3rd world stuff - rubbish everywhere
However being the way the Australian population is areas closer to the city will always do well over time. The reason is that in Australia we are too focused on 5 or 6 major cities and we have terrible infrastructure. As the populations of these cities grow People will pay up to be close to the high paying city jobs because they can't spend an extra 1.5 hours commuting every day to live in a nice area.

It's already happened in Sydney so surely it's a matter of time.

On my infrastructure point, I'm in Germany right now and have caught a few high speed trains around. I came to the realisation that one could easily live
100km from work and it would still make for a comfortable commute time (about 35 minutes). If Australia had these options then you could probably say footscray will continue to be what it always has been but if time pressures make it look feasible then it should be a winner over time

 

[KoopaTroopa]

Since you're not too worried about yield, and if you don't mind units, then $350k-450k can easily buy you a 2-bed (definitely a 1-bed) IP in any of the suburbs south of Footscray but much better reputation.

Yarraville, Kingsville, South Kingsville, Spotswood, Newport, and even Seddon.

All are significantly better than Footscray in terms of perceived reputation, and all are very close to the CBD as well. Have a look at the 3-year, 5-year, and 10-year comparisons of CG of Footscray vs the above suburbs. However, Footscray is definitely the closest to the CBD. Its one big trump card.

I would do some shopping in Footscray, but I dunno if I'd wanna live there...

If you want a house then Sunshine, Sunshine North, Sunshine West (and Albion), and Braybrook can all get you a standalone run-down fixer-upper on a good-size block for 400k+.

 

[markfrazer89]

Yeah i am definitely after a house, so around the sunshine area will be best, have been reading abit about it and it seems pretty good, have come across some houses for around 350k, so there are some places at the bottom end of my budget which is good.

I know what you guys mean by footscrays condition, it does have a pretty negative feel about the place..

 

[markfrazer89]

Also, for sunshine would it be hard getting tenants into a house? I would really need to have it rented out almost all the time.. a few months here and there isn't too bad, but upwards of 6 months would be hard.

 

[dredfern]

Just got back from new york and felt that broolyn has a very similar dirty/edgy feel as footscray. And similar proximity to manhattan.

Stayed with a friend just over the broolyn bridge. Lots of development/gentrification happening. Prices there going gangbusters pushing out anyone who can't afford it. (including businesses)

Footscrays destiny is written in its location!

 

[mikezen]

Also, for sunshine would it be hard getting tenants into a house? I would really need to have it rented out almost all the time.. a few months here and there isn't too bad, but upwards of 6 months would be hard.

Hi mark

Ph the local pm agents in sunny shine, they can give u great info on vacancy rates, what type of houses tenants are looking for, what properties are popular etc, what STREETS to avoid, 10 min on the phone with a good pm w put in the right direction, someone on here may recommend someone good for u to chat w no doubt if u raise the request
Mike

 

[markfrazer89]

Yeah that sounds like a good idea, I will definitely do that.

I seen some nice houses in sunshine in the sold section that went for low 300s which is a refreshing sign, hopefully will stay that way until im ready to purchase.

Is It 100% necessary to put down 20% to save on mortgage insurance? Because I wouldn't mind putting down 15% and maybe saving the extra cash for a little reno, or even just keep it for a rainy day just incase?..

 

[Hodge]

Where are the good pockets of Sunshine? I'm guessing close to Sunshine plaza / south side of Ballarat Road?

 

[twinkle_star]

Where are the good pockets of Sunshine? I'm guessing close to Sunshine plaza / south side of Ballarat Road?

Matthews Hill area. I believe anywhere close to the Sunshine CBD would also be good considering the train station upgrade and being close to facilities.

 

[Hodge]

What about Sunshine west? I'm looking at a couple but not sure of the area.