Buying our very first propery!

Which Suburb is safer?

  • Tarneit

    Votes: 3 25.0%
  • Wyndham Vale

    Votes: 3 25.0%
  • Trugnaina

    Votes: 3 25.0%
  • Mernda

    Votes: 3 25.0%

  • Total voters
    12
Hey all! we have finally decided to buy our first house! Our budget is somewhere between 350000k-375000k only. cant afford something more than this. We and my wife are both aged 27 yrs.

We are novice and need some advice. We are confused between few suburbs and just cant decide as to where should we buy!

Suburbs that we looking are: Tarneit, Trugnaina, Wyndham Vale, Mernda.

So you see, we are in fact confused between western suburbs and norther suburbs.

Things we are looking at: Safety!!!, Transportation (if possible), 'to be able to drive to a train station, park my car and catch a train to city!'

all your advice are appreciated!

cheers.
 
Yash

PPOR - Principal Place of Residents

Are you looking for a existing dwelling or buying a house and land package. My only concern with those areas is the as you point out something you have to drive to get to a train station. There are some areas in both the northern and eastern suburbs ( obviously 25+ km out from city) that you may find a house that is within walking distance to train

Jezza
 
Hi Yash,

Are you considering renting out the property after a few years & purchasing another as your PPOR :) ?

Your budget of roughly 350-375K could get you a great 1br in inner suburbs. Assuming it gets good growth for the first few years you're living in it, you can borrow against that growth & buy your next property.

I think buying so far out limits your pool of renters and/or pool of buyers should you sell. Perhaps not too much growth as there's no scarcity factor to what you have.

If you just want a 4br home that you'll live in, raise kids in & pay off till you're retired, then these suburbs may be fine. (Don't mean that to sound harsh as it's a perfectly valid decision for many, but you can make some excellent money outta property & at your ages, probably retire by the time you're 45!)

Regards,
M&M
 
u need another option in the poll (none of the above)

why would u buy in these areas?

better off renting and saving moneyh than buying there IMO.

good luck
 
Hey all! we have finally decided to buy our first house! Our budget is somewhere between 350000k-375000k only. cant afford something more than this.

We are novice and need some advice. We are confused between few suburbs and just cant decide as to where should we buy!

Suburbs that we looking are: Tarneit, Trugnaina, Wyndham Vale, Mernda.

At those prices my answer would be 'none of the above' as it should be possible to buy in a better served area for that amount.

Mention is made of convenience to a train station, but all those places (especially Mernda) are a fair way from one. For instant liveability ignore what the government says it may or may not do and go with something that's well-located today.

That amount could get you a place only half the distance from the CBD if you're willing to slum it in St Albans or Broady. Older homes often have more variety, eg this one with a bonus 1br flat attached http://www.domain.com.au/Property/For-Sale/House/VIC/St-Albans/?adid=2008432519 But don't know about the neighbourhood so can't say if it's good or bad.

Getting back to something near the areas suggested, what about the established parts of Werribee or Hoppers?

A friend of similar age was looking at Tarneit/Wyndham Vale etc, but eventually got his first place late last year in Hoppers for 290k (one-owner 3br house in good nick in Mossfiel estate) and he's loving it.

For Hoppers look at Bellbridge, Woodville or Mossfiel estates. For Werribee consider south of Synnot St, or along the river near Manorvale Pde. All these are better areas, but your budget is more than sufficient.

These areas have blocks around 600 sq metres and a good range of housing stock and owner ages (hence more fully owned homes). They are also near all facilities (sometimes even walking distance) so if petrol hits $4/litre they'll retain their value. Hence they should be more resilient even if interest rates rise and even have some scarcity value due to their convenience.
 
Yash

PPOR - Principal Place of Residents

Are you looking for a existing dwelling or buying a house and land package. My only concern with those areas is the as you point out something you have to drive to get to a train station. There are some areas in both the northern and eastern suburbs ( obviously 25+ km out from city) that you may find a house that is within walking distance to train

Jezza



Hey Jezza! Thanks for tell me wht PPOR is! :)

Yes this property will be a PPOR! we plan to live there for 3-4 years and then upgrade. Will have to look at eastern suburbs too now.

Yash
 
Hi Yash,

Are you considering renting out the property after a few years & purchasing another as your PPOR :) ?

Your budget of roughly 350-375K could get you a great 1br in inner suburbs. Assuming it gets good growth for the first few years you're living in it, you can borrow against that growth & buy your next property.

I think buying so far out limits your pool of renters and/or pool of buyers should you sell. Perhaps not too much growth as there's no scarcity factor to what you have.

If you just want a 4br home that you'll live in, raise kids in & pay off till you're retired, then these suburbs may be fine. (Don't mean that to sound harsh as it's a perfectly valid decision for many, but you can make some excellent money outta property & at your ages, probably retire by the time you're 45!)

Regards,
M&M


Hey Mary & Mat,
Thanks for such a wonder full advice. Yes we will stay in this property for 3-4 years and then upgrade! Will use the equity and get another house and put up this property for rent.
I recently met a financial consultant who advised me the same thing! Now, my mindset is changed! ...i want to see my property grow.
Wish me luck, as I have decided that I will try to find a property which is closer to the CBD.

Regards,
Yash
 
u need another option in the poll (none of the above)

why would u buy in these areas?

better off renting and saving moneyh than buying there IMO.

good luck


Hey Bigtone,
Thanks for replying. the reason I thought I would buy there was cause I used to think that these suburbs are new and affordable, but I was wrong.

Yash
 
At those prices my answer would be 'none of the above' as it should be possible to buy in a better served area for that amount.

Mention is made of convenience to a train station, but all those places (especially Mernda) are a fair way from one. For instant liveability ignore what the government says it may or may not do and go with something that's well-located today.

That amount could get you a place only half the distance from the CBD if you're willing to slum it in St Albans or Broady. Older homes often have more variety, eg this one with a bonus 1br flat attached http://www.domain.com.au/Property/For-Sale/House/VIC/St-Albans/?adid=2008432519 But don't know about the neighbourhood so can't say if it's good or bad.

Getting back to something near the areas suggested, what about the established parts of Werribee or Hoppers?

A friend of similar age was looking at Tarneit/Wyndham Vale etc, but eventually got his first place late last year in Hoppers for 290k (one-owner 3br house in good nick in Mossfiel estate) and he's loving it.

For Hoppers look at Bellbridge, Woodville or Mossfiel estates. For Werribee consider south of Synnot St, or along the river near Manorvale Pde. All these are better areas, but your budget is more than sufficient.

These areas have blocks around 600 sq metres and a good range of housing stock and owner ages (hence more fully owned homes). They are also near all facilities (sometimes even walking distance) so if petrol hits $4/litre they'll retain their value. Hence they should be more resilient even if interest rates rise and even have some scarcity value due to their convenience.

Hey spiderman!

Thanks for replying back. I looked at the link that you posted but I have a question for you. I might sound stupid but please help me with your advice on this.

st albans property looks great and within my price range. but will this suburb grow after 3-4 years? ( i guess it should, as its closer to the city, but when i think deep, i realize that property in st albans are not that expensive now, will it be after 3-4 years? is it worth buying in st albans/sunshine?

Also, your advice about hoppers and werribee sounds cool. I will check out the streets/estates soon.

Regards,
Yash
 
st albans property looks great and within my price range. but will this suburb grow after 3-4 years? ( i guess it should, as its closer to the city, but when i think deep, i realize that property in st albans are not that expensive now, will it be after 3-4 years? is it worth buying in st albans/sunshine?

St Albans/Sunshine has terrible demographics (ie low incomes/education/unemployment/social disadvantage/crime reputation etc) and are suburbs some people say they'll never want to live in.

But its property has still gone up hugely, despite stigma. As an example 1br flats in Sunshine's worst streets could be had for $110k maybe 5 or 6 years ago. Now you're struggling to find anything much under $200k.

Some people equate low price and 'scummy areas' with low capital growth potential.

But others say that just means it's got more room to move up than expensive areas as it's still cheap and more can afford.

Both have been right at various times, although sometime's people's personal prejudices about an area can hinder their ability to see value.
 
Hi Yash,

It's great you're thinking of a property more in terms of a wealth creation strategy than 'just a house'!

I have no idea personally, but there has been some talk on here about Footscray...pretty average area at the moment, but possibly heaps o potential...govt committed heaps of funds there to give it a facelift...just one of the many suburbs you will no doubt be starting to look at for growth :) (Alternately, someone I know says it's full of hookers & dealers & they would never invest there, but who knows what the future holds?)

Regards,
M&M
 
Hi Yash,

It's great you're thinking of a property more in terms of a wealth creation strategy than 'just a house'!

I have no idea personally, but there has been some talk on here about Footscray...pretty average area at the moment, but possibly heaps o potential...govt committed heaps of funds there to give it a facelift...just one of the many suburbs you will no doubt be starting to look at for growth :) (Alternately, someone I know says it's full of hookers & dealers & they would never invest there, but who knows what the future holds?)

Regards,
M&M

Hey M&M,

I live in seddon, which is near footscray. I went to check out an auction today right outside seddon station. It was a 3 bedroom, 1 bathroom house with no garage. It sold for 736,000k!!!!!!!!!!!!!!!!!!!!! can you beat that?!?! i had fun watching the auction and realized how properties closer to CBD will fetch in the future!
I dont want my dream house now!! i want something which will grow and make me smile :)

I have also heard from many people that footscray is a scray suburb but theres nothing below 500k !!!!

Yash
 
St Albans/Sunshine has terrible demographics (ie low incomes/education/unemployment/social disadvantage/crime reputation etc) and are suburbs some people say they'll never want to live in.

But its property has still gone up hugely, despite stigma. As an example 1br flats in Sunshine's worst streets could be had for $110k maybe 5 or 6 years ago. Now you're struggling to find anything much under $200k.

Some people equate low price and 'scummy areas' with low capital growth potential.

But others say that just means it's got more room to move up than expensive areas as it's still cheap and more can afford.

Both have been right at various times, although sometime's people's personal prejudices about an area can hinder their ability to see value.



Thanks for you advice spiderman! You have a good point there. I do feel suburbs like sunshine and st albans will grow. but who knows the future. But i like this point that it can grow more as its still affordable!

I have decided that i will look for a house within 20kms of CBD and not just stick to the suburbs!

cheers...
Yash
 
St Albans/Sunshine has terrible demographics (ie low incomes/education/unemployment/social disadvantage/crime reputation etc) and are suburbs some people say they'll never want to live in.

But its property has still gone up hugely, despite stigma. As an example 1br flats in Sunshine's worst streets could be had for $110k maybe 5 or 6 years ago. Now you're struggling to find anything much under $200k.

Some people equate low price and 'scummy areas' with low capital growth potential.

But others say that just means it's got more room to move up than expensive areas as it's still cheap and more can afford.

Both have been right at various times, although sometime's people's personal prejudices about an area can hinder their ability to see value.

couldn't agree more bought in a few undesirable suburbs and they have pretty well smashed supposed bluechip areas in the last few years:p
 
yeah $736k!!!! i couldn't believe it too. but it was sold!

i am considering a house.

yash

Hi Yash,

You mention you've stopped looking in outer suburbs ie Tarneit etc. I think you would be extremely fortunate to find a house for the price you're looking at anywhere within 20kms of the cbd :(

I think you would be better off looking at apartments as the initial stage of your investing journey.

So, could you & your partner live in something like this in St Kilda:

http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1648965_S.html

..doesn't say how many square metres, but on the surface it appears reasonable & you get a lil courtyard area too. I reckon it may go for around 350K. Factor in 5% growth (conservative) over next 3 or 4 yrs & you're on your way to IP2.

There's always talk about how land appreciates & the building doesn't so that's why houses get better capital growth than units etc. However, this is starting to change & 1 & 2br units get much the same cap growth as houses in certain areas despite not having much land content.

So which suburbs have you narrowed your search down to....& have you let go of the idea of buying a house 1st off the bat ? :D

Regards,
M&M
 
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If you are planning to trade up and need a reasonable suburb I would choose Hoppers Crossing.

As previously mentioned you should be able to land for something around the 300k mark within walking distance of a station.

I bought my IP in Hoppers in the Mossfield Estate near the Catholic School and the Werribee Plaza for $170k 4 years ago. It is now worth 300k.
 
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