Carrum Downs

I purchased my first IP in Carrum Downs in 2000/2001.

Why? Cause I knew the area well and it had very good yields at the time. Some family members bought there over the years so I had some good historical pricing information.

Then I got all wrapped up in the 'investing in inner suburbs for good capital growth' and thought I had a dud. I did the maths and found that over the last 30 years Carrum Downs has had 8-9% growth even with all that land around. Together with good yields makes it an OK investment in my books.

I've never smelt poo there. Didn't even know there was a poo farm nearby.

Would I live there? Probably not. But you don't have to live there to make money from there. Plenty of regular people live there, it will benefit from Eastlink and any Frankston spill over. In bad times these cheaper areas can increase in demand.

Would I invest in there again today (if I didn't already have a place). Unsure.
 
If you had $230k max to spend and it was your first purchase where in Melbourne would you invest and what would it be House/Unit/Flat?
This getting started buissness is scary!
 
At the end of the day when average Joe can't afford a place anywhere else maybe Carrum Downs will be a Popular location?

More like it will remain affordable until more "average joes like me" choose to buy and push the prices up....houses in the streets around here are not on the market for all that long...i don't have stats, just drive buy signs experience,

Cheers,
 
If you had $230k max to spend and it was your first purchase where in Melbourne would you invest and what would it be House/Unit/Flat?
This getting started buissness is scary!

For my first I'd buy something with the best growth prospects that I can that is cashflow neutral (or close to it).
 
If you had $230k max to spend and it was your first purchase where in Melbourne would you invest and what would it be House/Unit/Flat?

That sort of money could get you:

* A 1br flat in Carnegie, Glenhuntly, Caulfield, Brunswick, Northcote, Ascot Vale, Prahran, Moonee Ponds or Thornbury
* A 2br flat in (maybe) West Brunswick, Clayton or Essendon
* A 2br villa unit in Frankston, Seaford, Chelsea (if you're lucky), Croydon, Boronia, Bayswater, Thomastown, Glenroy, Springvale, St Albans or if you were lucky, Altona Meadows
* A 2br semi-detached in West Heidelberg (if you were lucky)
* A 3br house in Frankston North, Doveton, Hoppers, Broadmeadows/Dallas, Pakenham.
* An older 4br house in Melton or Melton South

All these suburbs have fair to excellent facilities nearby, although their demographics vary.

That should narrow it down a bit. Unless you buy very very well, none will be cashflow neutral - 6% gross yield for an unfurnished property would be a good buy.

Peter
 
Thanks Peter,
Your thinking along the same lines as me.
It would also buy 2 bed flat/unit in Dandenong/Sunshine.
3 Bed house in Carrum Downs/Cranbourne/Mornington (Tanti Park)
Problem is i'm not sure what will make the better first investment as I don't own any property yet! I have done alot of research so I know what $230k will buy

Do you think it's possibly better buying something cheaper for a first I.P then getting another in a few yrs or buying something a bit over budget and then another in a few yrs?
 
I started with a 2 bed unit in Mentone, then a few years later I bought a couple of 2 bed units in Sth Frankston.

In hindsight maybe houses would have been better. But at the time the units locations were better than what i could afford for houses and their cost was lower and so too was the maintenance.

Property investing is a journey. Be patient.

As a new investor, my advise would be to look for something around Sth Frankston for that price in a 2 bed unit. You should have less hassle than a house in Carrum Downs and Sth Frankston is a better area with very good potential. One day the occupants of this unit can walk to the marina, to central frankston, the beach and see the St Kilda football club train.

Sheeet, if i could afford it, I would buy another now.
 
You should have less hassle than a house in Carrum Downs and Sth Frankston is a better area with very good potential..

Less hassle??...is this one of those generalised subjective throw aways again

One day the occupants of this unit can walk to the marina, to central frankston, the beach and see the St Kilda football club train..

or if chosen correctly one day we can build 2 units on the block in carrum downs and make a motza,

its not always a case of just saying, a unit in area x is better than a house in area y because its a better area, so therefore you will be better off long term.....that would be boring :)

Cheers,
 
Less hassle??...is this one of those generalised subjective throw aways again



or if chosen correctly one day we can build 2 units on the block in carrum downs and make a motza,

its not always a case of just saying, a unit in area x is better than a house in area y because its a better area, so therefore you will be better off long term.....that would be boring :)

Cheers,

Probably is. My experience has been that I have not had ANY property management issues with my tenants in Mentone in 11 yrs of investing. With my units in Sth Frankston, I have had many issues. Late rent, rent still outstanding, old boyfriends trying to break in etc.

I have now bought a house with future potential to develop. That is an advantage. But for new investors I cant see why a 2 bed unit in a good location like Sth Frankston is not a good investment as against Carrum Downs.
 
Does anyone know whats planned for the turn off at Rutherford Rd and the area around it?
Seems to be alot of half finished roads and Industrial area. Why doesn't Armstrongs rd have an overpass across the freeway.
Would be a good way for Carum Downs residents near Hall Rd to get access to the beach instead of having to go to Seaford Rd
 
. Why doesn't Armstrongs rd have an overpass across the freeway.
Would be a good way for Carum Downs residents near Hall Rd to get access to the beach instead of having to go to Seaford Rd

becuase it is wetalnds near the freeway side.

I personally would not buy in carrum downs. There is still many large subdivsiions in skye to go ahead ie off ballarto road and also in carrum downs there is a bit of land around the lats avenue area, even some left on hall road, wedge road, brunning crescent (the list goes on). I would prefer karingal or marylands to carrum downs, My biased oipinion is buy something in the golden triangle. Thats my opinion only dont take it personal.
 
I personally would not buy in carrum downs. There is still many large subdivsiions in skye to go ahead ie off ballarto road and also in carrum downs there is a bit of land around the lats avenue area, even some left on hall road, wedge road, brunning crescent (the list goes on)
.

i see this " theres still lots of available vacant land" argument quite often, and it just doesnt fly in real life....prices for vacant dirt continue to rise, im not just talking about CD i see it across most newer establishing suburbs, point cook, lyndhurst, cranbourne, berwick...the list goes on.

If and when they do subdivide in CD, i fail to see how this will impact negatively on prices for established houses in the area.

Prices of vacant land in CD have been rising and any in a new sub division will be higher again, construction costs will be higher...meaning that the value of new construction will be higher than the value of an exhisting equivalent not quite new home....i hope they do subdivide, it will bring the new home dollars into the suburb.

its almost like gentrification of an area...without all the tearing down of old homes like is required in an established fully built out area :)

Approx 10 years ago you would have paid $50k for a vacant block of 600sqm in CD...now you pay 170K for a 500sqm block....how is that negatively impacting capital growth in an area?

i dont get it :)
 
Back
Top