Cranbourne Vic

[Tiffiny]

Oh, you people are harsh about Cranbourne. However I must agree that there are so many nicer areas in Melbourne that have character, culture and class.
Cranbourne is great for two types of buyers only - 1st home buyers desperate to get into the property market and those who want to live in a brand new McMansion.

I've been living in Pakenham last 4 years (1st home buyer) and currently have my property on the market. Pakenham is quite similar to Cranbourne. I will be glad to get back closer to the city.

 

[jezza]

Oh, you people are harsh about Cranbourne.

HAHAHAHA
Its not the ar$e end of town, but you can see that out of your back window

I do feel for the people of Brooklands Green Estate, where did that end up, did they take the council to the cleaners?

Jezza

 

[natedog]

I'd seriously look at Frankston, all the scum that lived in Frankston are getting pushed out to Cranbourne, Narre Warren, Lyndhurt, Pakenham, Carrum Downs & Skye etc.....
Meat & Potato Australia. Nothing to do and zero culture. Tons of land and no infrastructure.

Hey all,

Its opinionated unsubstantiated comments and stereotypical thinking like this that help create the opportunities in the different markets we have all over the country...it helps makes property investment interesting.

There are probably scum in every neighbourhood...some just make more money than others,

Cheers,
Nathan

 

[pickle pickle]

For a similar price you can get a property in Werribbee. I think that has more potential than Cranbourne. I think Werribee will become a hub for all the new developments that are happening that way.

 

[Psyk]

Certainly not much love for Cranbourne

Sure there are other places, but looking at it long term is it really all that bad?

I mean look at the Narre Warren's (even Berwick) 6-8 years ago. Prior to the East Link Narre Warren and Hampton Park were the no-go zones...

Cranbourne's getting quite a bit of focus since Narre Warren and Berwick are fairly well established. Being in the south east 'growth corridor' it should be natural that it will get some attention.

According to the city of Casey, the Cranbourne town centre is up for major upgrades across the board which should generate greater employment once complete. A new 70 hectare recreation facility is planned with outdoor fields, pitches etc. in Cranbourne East. A 40 hectare sports and parkland reserve is proposed for Cranbourne West. New roadways are planned to divert traffic, and they're planning on creating parklands, waterways etc. to make it look like a 'Berwick'. Another Town-Centre is planned for Cranbourne West also, with schools, shops, parks etc. And these are only for Cranbourne...

Developments are proposed for Narre Warren and Berwick which will make Cranbourne the more affordable area to live as things ramp up within the municipality. With abundant land, it doesn't mean they'll pump it full of houses with nothing to do out there. It also means there's room for industrial growth areas, parks, etc.

Apparently there's a new business park proposed in the Berwick/Narre Warren area, easily accessible via the main roads. In addition to new roads, the main arterials like the Cranbourne-Narre Warren rd. is proposed for enhancement to carry more traffic. The Peninsula link when done is going to help accessibility there too.

It's main attraction is it's affordability (your average person is priced out of Berwick and Narre Warren) and people are moving there as FHOB's and upsizing families (we know of one family upsizing from Noble Park to a Cranbourne McMansion due to affordability), kind of like Narre warren, Berwick, Hampton Park, Hallam, etc. all those years ago.

As for the 'dregs' of society, I look at places like Springvale, Noble Park etc. and the 'bad' vibes it had - a place just sold in Springvale South for $775K at an auction - it was bought 5 years ago for about $370K... I totally agree with Nathan, the 'scum' of society are now earning a lot more money

 

[heathgt350]

Wow, alot of hate for Cranbourne!

I actually live there, and bought there with no pre-conceptions having come from NZ. I got a 4 bedroom house for $245,000 in Nov 2008. Based on similar sales a couple of houses away from me, the property is now worth over 300k (4 bdrm accross the road sold for 319k a month ago).

If that's "no capital growth" then I'll have some more of that please!

Most of the people who hate on Cranbourne have never been out here, the people are great and there's plenty do.

But please keep on thinking that it's crap, leaves more opportunities out here for the rest of us!

 

[DeeHwa]

Wow, alot of hate for Cranbourne!

I actually live there, and bought there with no pre-conceptions having come from NZ. I got a 4 bedroom house for $245,000 in Nov 2008. Based on similar sales a couple of houses away from me, the property is now worth over 300k (4 bdrm accross the road sold for 319k a month ago).

If that's "no capital growth" then I'll have some more of that please!

Most of the people who hate on Cranbourne have never been out here, the people are great and there's plenty do.

But please keep on thinking that it's crap, leaves more opportunities out here for the rest of us!

A flat went for around your house's purchased price in late 2008 in St Kilda. In the same complex, an almost identical flat went for mid $400K's recently. I am sure there are a plethora of examples. Looks like your capital growth is pretty crap actually. You are only kidding yourself about the 'concept' of capital growth because everything else has ALSO gone up, and as shown, powered much harder. Sure, you bought a house, but boy, the transport costs must hurt!

 

[Psyk]

A flat went for around your house's purchased price in late 2008 in St Kilda. In the same complex, an almost identical flat went for mid $400K's recently. I am sure there are a plethora of examples. Looks like your capital growth is pretty crap actually. You are only kidding yourself about the 'concept' of capital growth because everything else has ALSO gone up, and as shown, powered much harder. Sure, you bought a house, but boy, the transport costs must hurt!

I think people would struggle with a median priced property's holding costs in a St. Kilda type place? What would the rental be on a $245K flat in St. Kilda, I'm assuming 1 bedroom, 1 bathroom and no carport/garage?

Also, the outer suburbs start to look attractive in the longer term say 7+ years. The nice thing about the initial low entry is the ability to acquire more and hold for a longer term and spread the risk. You can get a chunky piece of land and sub-divide it later on too.

One thing too is the changing demographics of buyers in the south-east corridor. Most of these people coming from overseas (china, india, sri-lanka etc.) aim to own a large house and living in a small apartment just doesn't gel with them - close to city or not. Also, they want to set their kids up, so many will buy up a house to rent or a block of land with the future to sell/build for their kids.

I tend to like Cranbourne, it just reminds me of Narre Warren and Berwick 7-8 years ago.

 

[heathgt350]

A flat went for around your house's purchased price in late 2008 in St Kilda. In the same complex, an almost identical flat went for mid $400K's recently. I am sure there are a plethora of examples. Looks like your capital growth is pretty crap actually. You are only kidding yourself about the 'concept' of capital growth because everything else has ALSO gone up, and as shown, powered much harder. Sure, you bought a house, but boy, the transport costs must hurt!

Just because everywhere else has gone up as well doesn't negate the fact that there was capital growth. someone said that there was no capital growth in cranbourne. I was providing an example of capital growth.

I'm glad that you or someone you know experienced that capital gain in St Kilda, but there's no way I was going to fit a wife a kid a great dane and 2 cats in a 1 bedroom little **** box in St Kilda.

It takes me 20 minutes to get from cranbourne to the high street traffic jam on the monash, not really budget breaking...

 

[Luv2Travel]

Just because everywhere else has gone up as well doesn't negate the fact that there was capital growth. someone said that there was no capital growth in cranbourne. I was providing an example of capital growth.

Disregard any comment from DeeHwa, he's a little boy who loves to put down those who suceed on their own, by investing in 'crappy outer suburban' properties. Good on you Heathgt350, I'm pleased your house in Cranbourne has done well for you.

DeeHwa, why I'm wasting my time on you I don't know, but the world doesn't end at the 10km radius around the CBD. Heathgt350 said he bought in Cranbourne as a PPOR, perhaps he'd rather live in a nice big 4 bedroom house with a backyard than some tiny apartment in St. Kilda. Who said he has high transport costs, he may not work or have the need/want to go into the city! Not everyone loves the city like you do! Some people in fact despise it as much as you do Werribee for example. Your comment was pure criticism and unnecessary.

 

[pickle pickle]

A flat went for around your house's purchased price in late 2008 in St Kilda. In the same complex, an almost identical flat went for mid $400K's recently. I am sure there are a plethora of examples. Looks like your capital growth is pretty crap actually. You are only kidding yourself about the 'concept' of capital growth because everything else has ALSO gone up, and as shown, powered much harder. Sure, you bought a house, but boy, the transport costs must hurt!

Can you show me evidence of this great growth in such a short period?

 

[DeeHwa]

I think people would struggle with a median priced property's holding costs in a St. Kilda type place? What would the rental be on a $245K flat in St. Kilda, I'm assuming 1 bedroom, 1 bathroom and no carport/garage?

Also, the outer suburbs start to look attractive in the longer term say 7+ years. The nice thing about the initial low entry is the ability to acquire more and hold for a longer term and spread the risk. You can get a chunky piece of land and sub-divide it later on too.

One thing too is the changing demographics of buyers in the south-east corridor. Most of these people coming from overseas (china, india, sri-lanka etc.) aim to own a large house and living in a small apartment just doesn't gel with them - close to city or not. Also, they want to set their kids up, so many will buy up a house to rent or a block of land with the future to sell/build for their kids.

I tend to like Cranbourne, it just reminds me of Narre Warren and Berwick 7-8 years ago.

The St Kilda flat had an undercover parking and yes, it was a 1 bedroom flat (which goes for $400K+ now in some top pockets of St Kilda). I don't know what the rental was like 2 years ago, but it is about $300-320 per week now for a 1 bedroom flat including carpark (but even if there is no carpark, you won't find many under the high $200's per week). A Cranbourne 4 bedroom house rents for about the $300-350 per week range, so very similar to a typical 1 bedroom St Kilda flat. I just checked on a search of rental properties and compared 1 bedroom St Kilda flat v 4 bedroom Cranbourne house. Probably fair to assume rental was similar a couple of years ago as well.

I have shown that rental income is similar for both 2 years ago. The holding cost would be similar. I don't know why you are saying the holding cost is higher in St Kilda. Remember, we are comparing a 1 bedroom St Kilda flat with a 4 bedroom Cranbourne house. The operational and running costs can also assume for arguments sake, be similar given on the one hand, body corp for St Kilda 1 bedroom flat, and higher transport and maintenance (as its a house) expenses for the Cranbourne house. The leftover is potential capital growth gain and clearly the 1 bedroom St Kilda flat wins out. Hence, Cranbourne has turned out to be a pretty crap investment.

I don't understand your low entry argument. The 1 bedroom St Kilda flat was pretty low entry a couple of years ago. Also, it is naive to think that you could easily make money simply by buying large parcels of land and sub-dividing. Even if you could, small timer's would find it almost impossible as they would pretty much lose out to your Delfin's and other large subdividing companies where they do this kinda stuff for a living.

Your house and flat comparison doesn't hold. Firstly, those cashed up overseas investors target PRIME suburbs and PRIME locations like Toorak, Canterbury, Brighton, Kew. I would be surprised if even middle class overseas investors even knew where a dump like Cranbourne is. Even if they are not wealthy, there is a wide array of other affordable choices like Dandenong, Springvale, Clayton etc... Why would they choose Cranbourne?

Also, you obviously have not attended many auctions near the city because you are oblivious to the prices fetched of little flats and apartments in the inner city. I would say good luck to you finding a 2 bedroom flat in South Yarra for under $600K these days. On Caroline St this weekend, one sold for $670K whilst quoted at $500-550K. I spoke to the agent personally and he joked that it was valued in the mid $450K's only early last year 2009. Most of these are bought by locals (in case you didn't realise that there are STILL a sh*tload of cashed up local and non-Asian looking investors and owner occupiers).

 

[DeeHwa]

Just because everywhere else has gone up as well doesn't negate the fact that there was capital growth. someone said that there was no capital growth in cranbourne. I was providing an example of capital growth.

I'm glad that you or someone you know experienced that capital gain in St Kilda, but there's no way I was going to fit a wife a kid a great dane and 2 cats in a 1 bedroom little **** box in St Kilda.

It takes me 20 minutes to get from cranbourne to the high street traffic jam on the monash, not really budget breaking...

I concur with your reasoning. 'Sometimes' it is not all about the 'investment and who wins' decision but the practical and logistically reason of fitting everyone in. And yes, no way you would fit that load in a 1 bedroom shoebox in St Kilda. You'd probably have to build internal walls in the lounge room and then end up not being able to stretch your arms sideways, haha

 

[DeeHwa]

Disregard any comment from DeeHwa, he's a little boy who loves to put down those who suceed on their own, by investing in 'crappy outer suburban' properties. Good on you Heathgt350, I'm pleased your house in Cranbourne has done well for you.

DeeHwa, why I'm wasting my time on you I don't know, but the world doesn't end at the 10km radius around the CBD. Heathgt350 said he bought in Cranbourne as a PPOR, perhaps he'd rather live in a nice big 4 bedroom house with a backyard than some tiny apartment in St. Kilda. Who said he has high transport costs, he may not work or have the need/want to go into the city! Not everyone loves the city like you do! Some people in fact despise it as much as you do Werribee for example. Your comment was pure criticism and unnecessary.

I've already agreed with his reasoning, so I will just let it be with your humourous remarks, haha. Also, the whole point I was trying to make was PURELY from an investment capital growth 'who wins' decision. Nothing else. And yes, I do love the city and I believe the majority of people think like me (property values does not prove otherwise).

 

[DeeHwa]

Can you show me evidence of this great growth in such a short period?

I work in the property and construction industry, and I used to work at a property consulting firm so knowing these bits of information is expected. For confidentially purposes, I am not going to say which complex, but I will say it is on Robe St, St Kilda.

 

[Luv2Travel]

I would be surprised if even middle class overseas investors even knew where a dump like Cranbourne is.

Charming, that's some people's home that you are calling a dump!

Everyone has different tastes and preferences, to be honest I could say a few negative things about Fitzroy and Brunswick as places to live but I won't. To have the opinion that Cranbourne is not the best investment is fine, but don't go rubbishing people's choices to live and calling them a dump.

Even if they are not wealthy, there is a wide array of other affordable choices like Dandenong, Springvale, Clayton etc... Why would they choose Cranbourne?

I'm not sure I'd choose Dandenong, Springvale or Clayton to live over Cranbourne!

 

[RocketMan]

It's ok to admit that the only reason why you buy in Cranbourne is because that is all you can afford. I think it's a bit silly to then justify your purchase based on the fact that it is a 'growth area'. The two things are very different.

 

[heathgt350]

The growth figures from investsmart.com.au for cranbourne and cranbourne north are as follows:

Cranbourne North 3977 VIC House yield = 5.7% $315,000 12 mnth = 17% 24 month = 29% 36 month = 42%

Cranbourne 3977 VIC House 5.3% $277,000 12 mnth = 9% 24 month = 15% 36 month = 26%

The figures for Cranbourne North are better than any suburb of St Kilda. And so is the yield. So yeah...

 

[Deltaberry]

For starters, these figures are so unreliable for all sorts of reasons (number of sales, number of sales recorded, types of houses sold) etc.

But in any case 36% over 2006-2009 would be pretty abysmal returns given we've been through the 07 sprout and the 09 boom.

 

[RocketMan]

If you're relying on median house prices to justify your investment strategy then you need more help than we can give you