Caroline Springs and related PPOR questions

Looking for some advise and a reality check. I have gone through various threads related to Caroline Springs and other suburbs and have some specific questions.

Background-
Just got married and we spent all the money there. Looking for PPOR in the range of 450-550k,at least 3 bedrooms. Have approximately 50K deposit and just enough money for other expenses. We both earn decent salaries and save around 4-5k a month all together.

Questions:

1) We are looking to buy in next 2-3 months. Shall we wait for another year and take to deposit to 20% and then buy ? The LMI would be approx 8k if we decide to buy in next 2-3 months.

2) Caroline Springs/Taylor Lakes or any other suburb ?
Can not afford anything in south eastern suburbs with this money, so we shortlisted Caroline Springs/Taylor lakes for a small/medium size house.

We liked Caroline springs lot more than Taylor lakes, just because of the vibe in the area, we are happy to compromise on a smaller townhouse closer to the lake.

At the same time, the prices have stayed as it is in Caroline Springs from last 4 years. With more development happening in Plumpton and a massive vacant land, the prices are likely to remain the same in Caroline Springs.

With the nature of my Job, there is a slight chance that we might have to move cities, if not, we would like to move to a bigger/better place in next 5-7 years. So a property with a growth potential would be great :)

As I drive to work (and would like to in future jobs), I am not considering northern suburbs as it would be relatively difficult to drive from there. Do no want to go down to Point Cook side.

Whats your opinion on CS vs Taylor Lakes vs any other suburb considering that ?

3) As in future, we would like to make this an IP, does Interest only loan with offset account makes more sense ? Any disadvantages ?

4) We can get FHOG, but dont see lot of land being available in CS or Taylor lakes. We are happy to ignore FHOG, is that a good decision ?

First post, please go easy in case if I havent followed any rules :)
 
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Looking for some advise and a reality check. I have gone through various threads related to Caroline Springs and other suburbs and have some specific questions.

Background-
Just got married and we spent all the money there. Looking for PPOR in the range of 450-550k,at least 3 bedrooms. Have approximately 50K deposit and just enough money for other expenses. We both earn decent salaries and save around 4-5k a month all together.

Questions:

1) We are looking to buy in next 2-3 months. Shall we wait for another year and take to deposit to 20% and then buy ? The LMI would be approx 8k if we decide to buy in next 2-3 months.

2) Caroline Springs/Taylor Lakes or any other suburb ?
Can not afford anything in south eastern suburbs with this money, so we shortlisted Caroline Springs/Taylor lakes for a small/medium size house.

We liked Caroline springs lot more than Taylor lakes, just because of the vibe in the area, and can compromise on a smaller townhouse closer to the lake. But at the same time prices have stayed as it is in Caroline Springs in last 4 year. With more development happening in Plumpton and a massive vacant land in Plumpton, the prices are likely to remain the same in Caroline Springs.

With the nature of my Job, there is a slight chance that we might have to move cities, if not, we would like to move to a bigger/better place in next 5-7 years.

As I drive to work (and would like to in future jobs), I am not considering northern suburbs as it would be relatively difficult to drive from there. Do no want to go down to Point Cook side.

Whats your opinion on CS vs Taylor Lakes vs any other suburb considering that ?

3) As in future, we would like to make this an IP, does Interest only loan with offset account makes more sense ? Any disadvantages ?

4) We can get FHOG, but dont see lot of land being available in CS or Taylor lakes. We are happy to ignore FHOG, is that a good decision ?

First post, please go easy in case if I havent followed any rules :)

Thanks for your post.
From what I read it seems your logic is more about lifestyle and personal preferences than investment.

I could suggest other north/west areas that would prob yield better CG for that price range but I think you need to live life too. So if you have rationalised that CS is a good place to be for that price pending a future move to another city, then go for it...

As far as TL vs CS, the majority of CS is new, where as TL is older, though has newer pockets, taylors hill for eg. If you are using the ring road then CS is better choice, but if you use the tulla then TL. But be prepared to leave home by 7:30 if you use the ring road going to the city... My GF was driving to Hawthorn from there everyday and some trips could take 1:45 mins each way! TL has the Watergardens train station too...

Investment and lifestyle choices sometimes are conflicting, so I guess you need to decide what is ultimately more important to you...
If you hold it long term as an IP in the future and have the loan on P&I then I guess regardless of the CG potential of CS it will be a form of forced savings for you and in time turn CF positive..

Best of luck with your decision!
 
Thanks. Couldn't agree more "You need to live life too".
Its better to stay in a stable/developed suburb that you like, than to go to an upcoming place and compromise 5-6 years of your life.

I learnt that when I moved to St Albans (house) from GlenHuntly(teeny-tiny apartment).

I guess the other question is to ask the community, if there are any reasons to avoid living next to CS square ? As I have never lived there personally.
 
I guess the other question is to ask the community, if there are any reasons to avoid living next to CS square ? As I have never lived there personally.

I have a friend who lives next to CS Square, and I cannot understand why you'd want to live far away from it. It has become the "heart" of CS with the lake nearby. It's also the newer, shinier section of the suburb. South CS has aged considerably.

For investment and PPOR, I'd choose TL over CS. CS's roads are horrible - only one road in and out. The traffic is terrible. Public transport options are remarkably better in TL, also you will get to the city quicker from TL in both on-peak and off-peak times (although you are subject to a toll on the Tulla). CS's only real benefit is that the area is much newer and the man-made lake is nice.
 
I have a friend who lives next to CS Square, and I cannot understand why you'd want to live far away from it. It has become the "heart" of CS with the lake nearby. It's also the newer, shinier section of the suburb. South CS has aged considerably.

For investment and PPOR, I'd choose TL over CS. CS's roads are horrible - only one road in and out. The traffic is terrible. Public transport options are remarkably better in TL, also you will get to the city quicker from TL in both on-peak and off-peak times (although you are subject to a toll on the Tulla). CS's only real benefit is that the area is much newer and the man-made lake is nice.

The only reason i have to go further from the CS Square is the size of the property. I would be able to afford a small townhouse closer to the CS Square whereas if I go a bit further north or east to Burnside heights, I am getting a bigger house in 500k.

Any reasons why south CS has aged considerably in short time ?
 
Looking for some advise and a reality check. I have gone through various threads related to Caroline Springs and other suburbs and have some specific questions.

Background-
Just got married and we spent all the money there. Looking for PPOR in the range of 450-550k,at least 3 bedrooms. Have approximately 50K deposit and just enough money for other expenses. We both earn decent salaries and save around 4-5k a month all together.

Questions:

1) We are looking to buy in next 2-3 months. Shall we wait for another year and take to deposit to 20% and then buy ? The LMI would be approx 8k if we decide to buy in next 2-3 months.

2) Caroline Springs/Taylor Lakes or any other suburb ?
Can not afford anything in south eastern suburbs with this money, so we shortlisted Caroline Springs/Taylor lakes for a small/medium size house.

We liked Caroline springs lot more than Taylor lakes, just because of the vibe in the area, we are happy to compromise on a smaller townhouse closer to the lake.

At the same time, the prices have stayed as it is in Caroline Springs from last 4 years. With more development happening in Plumpton and a massive vacant land, the prices are likely to remain the same in Caroline Springs.

With the nature of my Job, there is a slight chance that we might have to move cities, if not, we would like to move to a bigger/better place in next 5-7 years. So a property with a growth potential would be great :)

As I drive to work (and would like to in future jobs), I am not considering northern suburbs as it would be relatively difficult to drive from there. Do no want to go down to Point Cook side.

Whats your opinion on CS vs Taylor Lakes vs any other suburb considering that ?

3) As in future, we would like to make this an IP, does Interest only loan with offset account makes more sense ? Any disadvantages ?

4) We can get FHOG, but dont see lot of land being available in CS or Taylor lakes. We are happy to ignore FHOG, is that a good decision ?

First post, please go easy in case if I havent followed any rules :)

http://static.console.com.au.s3.ama...ntre/July 14 Predictions/Melbourne Top 10.pdf
 
Thanks. CS looks a lot more promising after this report, but they have not shared any details or data behind those recommendations :-(
 
Hi

Hello,

I am from Deer Park and only a 5 minute drive from Caroline Springs in fact, I grew up in Burnside lol.

Buying a investment property vs buying some where to live are two different things.

Caroline springs offers that community feel, shops, a young established area and good schools but from a investment point of view not the best choice.

Issue with Caroline Springs is that the area has reached it peak for the time being and you are right there are number of new estate being built. But you don't buy an area to live in because its a investment you buy in a area you want to live in.
 
Thanks. I have also heard a lot of issues with Bank valuations not being the same as the selling price , and eventually the cash strapped first home owners like me getting stuck with a personal loan.
I presume that will depend on suburb as well, rather than just on an individual property.

How does CS fair that way ? Are the bank valuations close to the selling price ?
 
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Where's Teshie when you need him? :)

The Y-man

Lol Y-man...I'm still here.

Re CS vs Taylors Lakes - IP wise I probably would go for Taylors lakes as long as property is close to Water Gardens train station and WG shopping centre. IMO it will give you better return especially if you decide to rent it out.

I like CS but lot of properties close to the lake seemed too congested.
 
Hello,

I am from Deer Park and only a 5 minute drive from Caroline Springs in fact, I grew up in Burnside lol.

Buying a investment property vs buying some where to live are two different things.

Caroline springs offers that community feel, shops, a young established area and good schools but from a investment point of view not the best choice.

Issue with Caroline Springs is that the area has reached it peak for the time being and you are right there are number of new estate being built. But you don't buy an area to live in because its a investment you buy in a area you want to live in.

Respectfully but completely disagree with respect CS not being a good investment. Capital growth has been very good, and rental yields for Melbourne are above average. Its been a very good investment, and is likely to continue to be so.
 
Respectfully but completely disagree with respect CS not being a good investment. Capital growth has been very good, and rental yields for Melbourne are above average. Its been a very good investment, and is likely to continue to be so.

https://www.realestate.com.au/neighbourhoods/caroline springs-3023-vic

Have a look at the annual growth!!! You could have put your money on the ASX market in the last two years and you would of smashed your returns vs a place to invest in Caroline Springs.
 
Lol Y-man...I'm still here.

Re CS vs Taylors Lakes - IP wise I probably would go for Taylors lakes as long as property is close to Water Gardens train station and WG shopping centre. IMO it will give you better return especially if you decide to rent it out.

I like CS but lot of properties close to the lake seemed too congested.

Hello,

I would even stay away from Taylors lakes for IP... Growth has been limited and to many new areas being built..
 
The misconception is CS have well-publicised sales of mega mansions for over 1 mil, and then everyone else starts to believe their house is worth gold.

LOL A few agents of mine in the area, have been doing allot of valuations in the area since two mansions have sold for more then a Million but like you said so many prospective vendors thinking that their homes are worth a Million as well.
 
You could possible get into Chelsea Heights (South East) with that budget.

This one in Aspendale Gardens if sold for 495K was a terrific buy for someone. Would have bought that in a heart beat for that price. Yes it needs a little bit of work but still very good value.

http://www.realestate.com.au/property-house-vic-aspendale+gardens-119347091

Thanks. I looked at those suburbs. All the properties sub 500-600k are really old and would some sort of renovation to make them liveable. I completely agree that it will be good for CG (especially if we renovate) but would have limited scope for renovation in 2-3 years. That said I am still keeping an eye on any units listed in those areas - as properties closer to CS square are anyways congested and unit sized.
 
LOL A few agents of mine in the area, have been doing allot of valuations in the area since two mansions have sold for more then a Million but like you said so many prospective vendors thinking that their homes are worth a Million as well.

Do you have rough idea on how does CS listing prices fair in comparison to bank valuations of the properties ?
 
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