Buying in Melbourne (my 2nd property) tips

Hi Guys

I currently hold one property in Elwood (apartment) and am looking to purchase my second one.

I have released equity from my initial property and am looking to buy a new one around the 300-350k mark in Melbourne. I'm looking for a property with land which I can potentially develop in the next 5 years or so. In the meantime I'm just looking to rent it out.

My questions are as follows:
1. I am currently with Westpac. I have got equity out of my existing loan there. How would I go about obtaining a new loan? I assume its better to go to another bank so that I am not cross-collaterized. How do I approach a new bank? What to say etc.?

2. With my budget I would be dreaming to buy in inner suburbs of Melbourne. Hence, I realize I would have to go a bit further out that Elwood. Which suburbs spring into mind?

3. How to buy a property at or under market value? I purchased my one in Elwood 20k above market value at time of purchase. I want to avoid this mistake. What is the best way to establish market value BEFORE you buy?

Many thanks guys, look forward to your responses.
 
1) You do not need to go to another lender to stop the cross coll but it does make sure 100% that it is not. You just need to ensure that the Westpac manager does two separate loans with two different securities.
2) Perhaps Ringwood.
3) The market value is what you paid for it but you have to ensure you buy well. Comparable sales are the only way.
 
It's pretty hard to say that you've bought under market value, or over market value for that matter. It could be that you can negotiate to pay less for a property but 10 years from now it's unlikely that it'll really matter.

The best thing you can do is do a lot of research. Go to a lot of auctions, open houses, etc. Research the area and surrounding areas. That way you'll know good value when you see it.
 
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