Clayton South?

willfong

willfong

Anyone know that area well? There are some brand new terrace houses right next to Westall station selling for 450k-500k range. My dad from overseas went to have a look and liked it. Honestly I personally don't think it's worth that much with land sizes around 200-270m2 and around 20km out of CBD and right next to Springvale.

I am trying to talk him out of it, any of you guys have an opinion of that area?
 
Clayton is more of an industrial area, although there is Monash there, so student population.

I'd personally spend the money on a 2-bed unit closer in to the city, or if the budget would work, an older villa or such in burwood, ormond, etc...

You will get more of your $$ into land in a desirable locale, rather than into a new building in an area many would not wish to buy / rent into as a first (or second, third...) choice.

Or is your father limited to a new build by FIRB rules?
 
IMO Westall is probably the less desirable part of Clayton. Better to stay closer to Clayton Station and Monash Hospital.

If you must buy in the area, get something established - preferably a house.

Cheers,

The Y-man
 
This part of clayton south has not
risen in value and will not rise in value as much as
Clayton central. I have Ip's in both
The best part of Clayton in my opinin
is between Carnish rd Clayton Rd browns rd and
princes hwy.
Close to station,bus,shops,Monash uni,Monash medical centre.
eg 3 br house Clayton sth(Westal) $220pw rent, house worth$320,000
Clayton central $420 pw $420,000.
 
hi willfong

I stayed in noble park, and drive past that place everyday and sometimes see it closely from the train.

I think that is probably not a good place to invest ? due to the powerline that is close to the area around there , and a lot of industrial site (bread factory just right in front of it, smells baked bread when i drive past fairbank rd)

Also being close to springvale, why is it not good ? easy food access, fresh asian food, fish, meat @cheap prices (not because they are bad, but the turn over is big).

Your dad probably liked it because it is new housing.

i would agree with most other people, to get an established house and being that you have 450-500k budget, i am sure you will easily find a place in glen waverley, or nunawading or even keysborough.

i would like to buy in those places, but cannot afford it.

Anyway my 2 cents, hope that it is useful to you and anyone who reads it.
 
Land is rather small. The townhouses maybe new now and look great but that can't last. How attractive will they be in say 5 years time? Their likely to lose a little value in the short term and unlikely to rise significantly in the medium term.

At least from a rental perspective there would be a low risk of vacancy due to nearby industrial zones, Monash and proximaty to the station.
For the money he's looking to spend there's plenty of established houses, units he could look at in other areas closer to the beach. He could even find a house in probably Parkdale or Cheltenham for around $500k and a unit even closer to the CBD.
If he's keen on that sort of area (clayton and surrounds) he may even want to look at the new estate in Keysborough (off Cheltenham Rd) near Hailbury College. Anyone who sending their kids there has a few bob. Not sure if the area is perfect for renters though as maybe if they can afford to send kids to that school they may just buy in the area.


Anyway please don't take this as a recommendation. It's just my 2 bobs worth and some food for thought. The properties in question my go through the roof for all I know.:)
 
As per previous thread 'Suburbs Around Clayton' http://www.somersoft.com/forums/showthread.php?p=291779&highlight=Westall#post291779

this is the development which has taken your Dad's fancy: http://www.austcorp.com.au/property/residential-property/victoria/the-village

Yes, the area is not so flash now, but 330 new townhouses, the landscaping, the apartments etc will provide a mini neighouhood of 1,000 people all of whom will be there for proximity to the Hospital, the University, the railway - and all of whom will be earning good incomes.

Good incomes means more discretionary spending in an area. The shops will get more trade, the impact of this development will be far reaching.

When a company the size of AusCorp invest in an area, they do their due diligence very thoroughly. They look at changing demographics, who will buy, what are the trends in an area and design the project to meet the market.

When I drive past my office in Rosebank Avenue to check for mail I always spend a few minutes looking at the development. In the early evening it looks quite lovely. I am sure when the gardens grow a bit that it will be a real prizewinning project. The area is receiving a real boost with this new development

Cheers

Kristine
 
Median House Prices-Clayton + Clayton South...

This first lot of figures are from the Victorian Valuer-General 1994-2005.
Please note it refers to Median House Prices:

Clayton: 1994 Median House Price: $112,500............2004 MHP: $315,000....................Change of: 180%

Clayton South: MHP 1994: $120,000...............2004: $297,250.........148%

..........AND that's not all.....:)

Thanks to Bernly (from forum here) and the Weekend Australian Financial Review (Jan 1st 2008):

I have another source of stats for Clayton; stats from Australian Property Monitors; (by postcode):

3168 Clayton: 2007 Median Price $370,000

12 month change: 6.6%

10 Year Trend: 11.6%

1 Year Forecast: 4 to 7%


3169 Clayton South: 2007 Median Price: $347,000

12 Month Change: 10.2%

10 Year Trend: 10.5%

1 Year Forecast: 5 to 8%

I don't have any IP's in Clayton, just thought you might like to see these stats, I find them always interesting as a small part (glimpse) of the bigger picture.
 
Thanks for the feedback guys. Yeah he is a foreigner and can only buy new property, anyone know of better located new developments in that price range? Is the area around Waverley Park in Mulgrave any better?
 
Hi Will,

I have lived in Clayton for the past 5 years. I was a student at Monash you see. It really depends on what your dad is buying it for. An investment or a place to live in.

In terms of investment, i think is not a bad place to buy. Although IMO, prices are a bit too high now. The yield is not great. But rental demand is extremely strong due to the number of students.

In terms of living. I am not that keen. It has all the ammeneties and so on. The thing that bugs me is the maintenance of the suburb, a lot of houses are runned down and very messy. Gives a genaral feel that no one is really taking care of their houses. And that is the thing, a lot of them arent. cause they are all renting students!


So, theres my 2 cents. 4 - 500 k is quite a lot of money. Have a look at glen waverley. I would prefer that suburb anytime. And I think 400-500 k can still get you a decent place there.
 
I would have to agree with Kristine. The area is definitely changing and springvale is not what it used to be.

6 months ago, those townhouses were selling for $420k, and now they are selling for $469k. The town houses sell very quickly and they are already into stage 5. This shows that there is demand for the homes and from what i've been told, the houses are being purchased by young professionals.

The great thing about being wedged between Clayton and Springvale is that you have the choice of shopping at either Clayton which is predominantly people from european descent or at springvale which is predominantly asian.
 
Couldn't talk him out of it. He signed the offer for the bigger lot in this release (270m2) for 508k. I still think it's overpriced and he could get better value for money elsewhere but he really liked it and it's his hard earned money, he can do as he please. Thanks for everyone who gave their 2c about the area.
 
"The Village"

your dad made a very wise decision. My friend sold a townhouse in "Tjhe Villgae" not so long ago for $544K. He bought it for $430 at the same time as your dad. Rented it out for a year at 470 per week.




willfong said:
Couldn't talk him out of it. He signed the offer for the bigger lot in this release (270m2) for 508k. I still think it's overpriced and he could get better value for money elsewhere but he really liked it and it's his hard earned money, he can do as he please. Thanks for everyone who gave their 2c about the area.
Click to expand...
 
I'm thinking of buying an IP on Springs Rd in Clayton South. It's a 3br unit. What do people think? Good idea? bad idea?

I'm looking to rent it out to Monash U students, but a couple, small family would probably be better (they won't ruin it as much).

What kind of rent can I expect in that area?
 
Other than directly under the power line, I think it's a nice area. Have a unit in the suburb, and have had no vacancies since 2000 when we bought it (haven't even gone to see inside the place, as it's never empty!)

We've always let to couples and families - no shortage of demand.

Check the rents on realestate.com.au on similar units in the area

Cheers,

The Y-man
 
Nah, definitely staying clear of power lines.

No vacancies - that's good to hear.

So is the demand from well-behaved couples/families the same as demand from students?
 
luke1457 said:
So is the demand from well-behaved couples/families the same as demand from students?
Click to expand...

I don't think we've had too many students apply....

Cheers,

The Y-man

p.s. keep in mind this part of C.Sth/Clarinda is a fair way away from Uni compared to Clayton central - so it seems to attract more families.
 
The Y-man said:
p.s. keep in mind this part of C.Sth/Clarinda is a fair way away from Uni compared to Clayton central - so it seems to attract more families.
Click to expand...

Springs Rd would still only be 10-15mins from Monash Uni by bus, is it not? Surely students don't mind living that "far", do they?

Or do they all aim for walking distance?
 
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