Coast, country or stick with what you know? - Somerville, Rosebud or The Basin?

[Propagate]

Hi all,

Just trying to narrow down a search area to start looking more in-depth at.

Decided the time is right to make a purchase, just got to decide where.

Ideally, we'd like a house on a decent bock with some potential to add value but not something that needs masses of work.

Budget is $350k

We're not really interested in apartments or small units.

We have looked in the past, and currently are looking in Somerville, mainly as we spent a lot of time looking here before and got a good feel for the place, so much so we moved here ourselves! It has good facilities, a train line which may or may not get upgraded at some point, close to the Peninsula but not at all a tourist town and easy access to the new Peninsula Link. It's also surrounded by some nice rural properties. Prices seem to have done ok in the last couple of years, I'd guess looking at whats available now that the $300-$320 range from two years ago is the $330-$350 range now. There's about 18 3 bed houses of similar looking value currently listed as available to rent on RE.com in the $300-$350 range. There are tons of sub-divisions going on, so there is development money being spent. Trave time to south of the CBD by car is an hour now, 1:15 home at 5pm from St Kilda Road, and 1:35 by train with a change at Frankston.

I don't think we'll see huge CG here, but as we are gong to buy to hold, that's not necessarily an issue, as long there's some steady growth.

My other thoughts at the moment are to go coast or country and look for something around say Rosebud West. Pro's are proximity to beach and the new freeway opens up easier access, everyone loves the beach so if there's ever another boom there's potential for good CG. Cons are I know NOTHING about the area and have heard a few bad reports. No real public transport. Not much in the way of jobs, so limited rental potential?

Country, The Basin really appeals, but that's more emotional. I love the hills and countryside. Ferntree Gully looks like it could be OK, train lines, shops and road access. Prices look good, but I don't know much about the area. The Basin looks great from an emotional pint of view personally (yes I know, keep emotions out of it), big blocks, big houses and views so why so cheap? It seems relativley close to Ferntree Gully but you get a good bit for your money.

So, thoughts on Somerville, Rosebud West, Ferntree Gully & The Basin (and surrounds) would be awesome if any of you have opinions on these areas, or better still own/live in them.

Thanks.

Tone.

 

[tobe]

Ive got an opinion. I reckon you should consider some more options. Neither of these areas stick out because of their capital growth potential, or their yield. Why consider them?

For 350 I'd either buy an older style apartment closer to town, or a house in a regional centre. If you like rosebud (as I do), book a holiday let there in summer, and go on a day trip in winter. You'll see whay the prices and yields are where they are. Somerville does have some potential, but is also surrounded by greenfields potential. Its really regional with city like prices, Id avoid, especially for the first IP. The basin? PPOR, great. IP? no.

Just my opinion.

 

[Propagate]

Thanks Tobe.

I though Rosebud more for future potential CG being as that it's close to the water but cheap. I'm not really feeling it in my gut though.

Our strategy as such is to pick up some proprieties, slowy over time without over extending. We want to minimize impacts of vacancy & costs on our pocket as much as possible.

Probably not the "best" way to increase wealth quickly, and many may frown upon it, but I figured that if we look for properties that we would buy or rent ourselves, in areas we'd like to live then whilst they may not set the world alight, they should do better than not buying an IP at all? Hence the Basin area, Big houses, cheap, some with views but may never do anything in terms of growth. FTG may be better in that respect as you can still get something sizable but closer to transport etc.

Somerville is still my favourite, there are good sized blocks left. 3 bed house on 600-700m2 can be bought for $320-$350 and a few have popped up over the last couple of years that can be sub-divided without knocking down the original house. There's a lot of that going on in the area at the moment.

There's the train line, the schools have a decent reputation, the new freeway entrance is close, tons of shops and amenities, nice green, open areas. There is the surrounding green fields issue but Mornington Peninsula Council seem pretty good at not letting mass development go on everywhere, (unlike Casey down the road). Plus, the centre of Somerville walking distance to shops, schools etc is fairly dense now. Any major developments in the outer area would be too far to be convenient for amenities without a car.

There's also another supermarket underway, (Aldi). There's already a large Coles & Woolies and a Target and lets not forget Macca's! There's a few nice cafes, an awesome Thai restaurant and a decent Indian restaurant. It's crying out for a bistro though and would do really well in my opinion. There's also a Police Station under development on the corner of Eramosa and Coolart, the land has been bought and planning is underway.

I like it because I know it, I like the comunity here and I know where the nice streets etc are so I guess part of it is that I'm more comfortable with what I know.

I'd love to hear more thoughts.

Cheers.

 

[tobe]

sounds like you ahve done some decent research into somerville. I have firends who live there who have been telling me of its potential for the last 7 years. I guess you can never be too early for a good investment...

I work in frankston, and Im bemused at the stigma attached to somerville from here. I mean, how can a person from frankston talk?

 

[Propagate]

I work in frankston, and Im bemused at the stigma attached to somerville from here. I mean, how can a person from frankston talk?

Hah, at least they know where Somerville is. People I talk to from any futher north than Frankston have usually never heard of the place, then when they visit they say what a nice spot it is!

I'm from Middlesborugh in the UK originally, people who bag Frankston for being rough need to go live on a northern England council estate for a few weeks, see what a rough area really looks like.

 

[Propertunity]

......I don't think we'll see huge CG here, but as we are going to buy to hold, that's not necessarily an issue, as long there's some steady growth.

You need to rethink your strategy. Are you here to collect a bunch of pretty houses or to make money?

I though Rosebud more for future potential CG being as that it's close to the water but cheap. I'm not really feeling it in my gut though.

If I were you, I'd leave the gut feelings to :" Macca's! There's a few nice cafes, an awesome Thai restaurant and a decent Indian restaurant".

Probably not the "best" way to increase wealth quickly, and many may frown upon it, but I figured that if we look for properties that we would buy or rent ourselves,

WRONG! This is a guaranteed way to either lose money or at least not maximise the money you could be making.....just to stay in your comfort zone.

.... in areas we'd like to live

WRONG again, as above. You know that being stuck in a rut is just a coffin with open ends, right?

then whilst they may not set the world alight, they should do better than not buying an IP at all?

Yes, agreed. But you are not performing to your highest potential by 'settling' on this course.

..... are so I guess part of it is that I'm more comfortable with what I know.

So when is investing ever about your comfort factor?

Sorry to appear harsh, but you can do better and your thinking needs to be jolted out of your comfort zone or you will have under-performing IPs as a result.

 

[Propagate]

No need to apologize for appearing harsh, you haven't really said anything I didn't already know and haven't said to others myself. It's just when it comes down to it being your own money, it becomes a lot harder to practice whet you preach, (personally speaking).

I know what you are saying about not being a comfort factor, but by the same account money isn't the be-all and end-all for us. I need to feel balanced between trying to do something that will see us better off than not when we retire, whilst also not wanting to spend every second of the day worrying about investments if that makes sense?

There must be a balance out there whereby we can look at something that will do better than a safe and boring property, but that's not a CG gamble that's a constant worry?

I'd love to here some suggestions about where people think we should put out money into, as well as reasons why not to put it onto Sommie. When you're not familiar with anywhere other than where you've lived, it becomes a bit daunting to even start narrowing research areas down.

Thanks for the replies, it's all interesting stuff, and I agree - I do think we need a bit of a jolt, just maybe not too high a voltage one?!?

 

[CHAOS]

I though Rosebud more for future potential CG being as that it's close to the water but cheap. I'm not really feeling it in my gut though.

Had this idea ten years ago. Thought it is close to the beach; Sorrento down the road; a new marina being built at Dromana.

Lemon!

 

[CHAOS]

Not sure what I did there