Hi, anyone knows any reason to invest or not invest in Croydon, 28km from Melbourne?
Thanks,
KY
Thanks,
KY
croydon, vic
- Thread starter kum yin lau
- Start date
Hi, many thanks for your reply, Battler. From the pictures, it looks like my house in the hills area.
KY
KY
Hi KY
I have lived in the general Croydon area since 1981.
In that time, I have had a few businesses, been on the local Council (Lilydale), the Children have all gone to school here, made friends here, worked here.
We have had six different homes since first moving here, and most of our investment properties are in the Croydon catchment area ie between Chirnside Park and Ringwood.
As a business person here, I certainly got to meet lots of people. One of my businesses was a retail store in the Main Street which I owned and operated for five years.
This area has been good to us and good for us. It is quite beautiful, with lovely views of the Dandenong Ranges, mature street trees, and many of the shabby areas have undergone major transformation over the past twenty years.
Public transport, the Maroondah Hospital, the Government and Private schools, and if you need it, good access to the CBD, to the bayside beaches or to the Yarra Valley and on to the high country and the snow fields.
The Yarra Valley has much going for it, and Croydon is on the cusp between the built up metropolitan area and the valley.
In my personal experience, values have been steady - we got our rates notices today, and for example my first investment property, which I bought in 1994 for $105,000 is valued by the Council at $345,000. Not world shattering, but this is an 11 square brick veneer, mission brown, still with a single bowl sink in the kitchen and a rather ugly bathroom. It rents for $255 per week but a rent review is due in October and I would expect between $280 - $310 per week after that.
So not sure what your question really is, whether you are moving here or investing here and will be an absentee landlord, but we have found the area very satisfactory over the past 28 years so I guess that's a fairly good trial period for any area.
Hope this helps
Cheers
Kristine
I have lived in the general Croydon area since 1981.
In that time, I have had a few businesses, been on the local Council (Lilydale), the Children have all gone to school here, made friends here, worked here.
We have had six different homes since first moving here, and most of our investment properties are in the Croydon catchment area ie between Chirnside Park and Ringwood.
As a business person here, I certainly got to meet lots of people. One of my businesses was a retail store in the Main Street which I owned and operated for five years.
This area has been good to us and good for us. It is quite beautiful, with lovely views of the Dandenong Ranges, mature street trees, and many of the shabby areas have undergone major transformation over the past twenty years.
Public transport, the Maroondah Hospital, the Government and Private schools, and if you need it, good access to the CBD, to the bayside beaches or to the Yarra Valley and on to the high country and the snow fields.
The Yarra Valley has much going for it, and Croydon is on the cusp between the built up metropolitan area and the valley.
In my personal experience, values have been steady - we got our rates notices today, and for example my first investment property, which I bought in 1994 for $105,000 is valued by the Council at $345,000. Not world shattering, but this is an 11 square brick veneer, mission brown, still with a single bowl sink in the kitchen and a rather ugly bathroom. It rents for $255 per week but a rent review is due in October and I would expect between $280 - $310 per week after that.
So not sure what your question really is, whether you are moving here or investing here and will be an absentee landlord, but we have found the area very satisfactory over the past 28 years so I guess that's a fairly good trial period for any area.
Hope this helps
Cheers
Kristine
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Apparently they're building a 12 storey housing commission block somewhere in Ringwood. Not sure whether it's just in discussion stages at this point or whether it's confirmed.
As for Croydon, I much prefer the Croydon North (except for the Exeter Road area) and Croydon Hills areas, especially for PPOR. For investment, if you want to stick with good public transport then I guess Croydon is the way to go as it has the train station. I personally wouldn't live there though, it may have some nice pockets but overall I think it's a bit rough. Then again, where isn't these days?
As for Croydon, I much prefer the Croydon North (except for the Exeter Road area) and Croydon Hills areas, especially for PPOR. For investment, if you want to stick with good public transport then I guess Croydon is the way to go as it has the train station. I personally wouldn't live there though, it may have some nice pockets but overall I think it's a bit rough. Then again, where isn't these days?
OK, let's look at this:
Why are you buying?
and what does 'checked out' and 'a bit rough' really mean?
Does 'checking out' mean going to Open for Inspections or just looking at pictures on websites?
Is 'a bit rough' based on anything in particular, or just an off the cuff opinion?
I have property in Exeter Road, been a gold mine, going to be even better when I build the three townhouses.
'Wouldn't live there' means what? I also have property in Ringwood and quite a number of my customers have bought in Ringwood - I would live in any one of the properties I own or my customers own, in Kilsyth, Croydon, Ringwood or anywhere inbetween.
Any area has areas of potential. When I bought the Mission Brown house it had been on the market for months, a vendor transferred interstate in the Recession who was very keen to sell. Orange and lime green loungeroom, opposite horse paddocks which flooded, all the reasons why someone wouldn't buy it.
But I did. The rent has always covered the mortgage and the equity in that house has leveraged me into other investments over the years. It can now be developed into three units if I wanted to do that. The horse paddocks are now filled with McMansions and the road has been fully constructed at council's expense.
We make our own opportunities. Each area has pockets where people say 'oh, I wouldn't live there' but someone does live there and often that area has the greatest potential.
My younger son bought two concrete bunkers in Kilsyth - graffiti on the letter boxes - and has made $75,000 equity on each property in the past three years, which equity has now got him a flash new apartment in Oakleigh.
Was he too proud to buy the bunkers? No, he knows a good opportunity when he sees it. At $235,000 each (but they are not for sale), these units are still opportunities - where else can you get two bedrooms, courtyard, car parking in a garden setting? Still rock bottom prices yet they have made him $150,000 in three years.
Investing in property is about OPPORTUNITY. It is not about ready made market appeal. Buying where it is already popular is about buying 'retail'.
If you are genuinely interested in property investing you set aside your own ideas of 'good' places to live in and look at the trends.
Croydon used to be hills and swampy orchards. Now, it is becoming fashionable, it's turn at gentrification is arriving. It is being discovered all over again.
By the way, I also have a four bedroom exec house in Wonga Park which I built ten years ago for rental. Do you know which property has shown the greatest year on year growth? Interestingly enough, it will be the dump on Exeter Road ......
cheers
Kristine
Why are you buying?
and what does 'checked out' and 'a bit rough' really mean?
Does 'checking out' mean going to Open for Inspections or just looking at pictures on websites?
Is 'a bit rough' based on anything in particular, or just an off the cuff opinion?
I have property in Exeter Road, been a gold mine, going to be even better when I build the three townhouses.
'Wouldn't live there' means what? I also have property in Ringwood and quite a number of my customers have bought in Ringwood - I would live in any one of the properties I own or my customers own, in Kilsyth, Croydon, Ringwood or anywhere inbetween.
Any area has areas of potential. When I bought the Mission Brown house it had been on the market for months, a vendor transferred interstate in the Recession who was very keen to sell. Orange and lime green loungeroom, opposite horse paddocks which flooded, all the reasons why someone wouldn't buy it.
But I did. The rent has always covered the mortgage and the equity in that house has leveraged me into other investments over the years. It can now be developed into three units if I wanted to do that. The horse paddocks are now filled with McMansions and the road has been fully constructed at council's expense.
We make our own opportunities. Each area has pockets where people say 'oh, I wouldn't live there' but someone does live there and often that area has the greatest potential.
My younger son bought two concrete bunkers in Kilsyth - graffiti on the letter boxes - and has made $75,000 equity on each property in the past three years, which equity has now got him a flash new apartment in Oakleigh.
Was he too proud to buy the bunkers? No, he knows a good opportunity when he sees it. At $235,000 each (but they are not for sale), these units are still opportunities - where else can you get two bedrooms, courtyard, car parking in a garden setting? Still rock bottom prices yet they have made him $150,000 in three years.
Investing in property is about OPPORTUNITY. It is not about ready made market appeal. Buying where it is already popular is about buying 'retail'.
If you are genuinely interested in property investing you set aside your own ideas of 'good' places to live in and look at the trends.
Croydon used to be hills and swampy orchards. Now, it is becoming fashionable, it's turn at gentrification is arriving. It is being discovered all over again.
By the way, I also have a four bedroom exec house in Wonga Park which I built ten years ago for rental. Do you know which property has shown the greatest year on year growth? Interestingly enough, it will be the dump on Exeter Road ......
cheers
Kristine
according to a RPData from April 2009 property investor magazine.
Croydon Houses
median price -367k
5 year growth - 41%
gross yield - 4.5%
Ringwood houses
median - 415k
5 year growth - 45%
gross yield - 4%
I have no doubt prices are higher now that they were in April, so If your going on recent peformance, croydon has done alright.
There are areas that have done better (70% growth) but there are areas that have done worse (30 %).
What the future holds i dont know... but croydon will most likely track close to the melbourne middle ring market.
If melbourne property prices are higher in 5 years, there is no reason that croydon would not follow suit.
Croydon Houses
median price -367k
5 year growth - 41%
gross yield - 4.5%
Ringwood houses
median - 415k
5 year growth - 45%
gross yield - 4%
I have no doubt prices are higher now that they were in April, so If your going on recent peformance, croydon has done alright.
There are areas that have done better (70% growth) but there are areas that have done worse (30 %).
What the future holds i dont know... but croydon will most likely track close to the melbourne middle ring market.
If melbourne property prices are higher in 5 years, there is no reason that croydon would not follow suit.
Hi all & thanks for the discussion esp Kristine for sharing your knowledge.
I flew in from Adelaide yesterday [got to the airport before 6am & plane had problem, didn't take off till 10]
Didn't have time to try the train, always my preference, instead had a cab race through & 'inspected' cursorily.
The expected price is at the top of the quoted range : $460000
The houses are well kept & I think people in the area would spot a stranger from a mile away. Exactly like our house in the hills here.
Agent says builders are swarming the area so it's a not question whether it'd sell rather how much someone would pay in the end.
KY
I flew in from Adelaide yesterday [got to the airport before 6am & plane had problem, didn't take off till 10]
Didn't have time to try the train, always my preference, instead had a cab race through & 'inspected' cursorily.
The expected price is at the top of the quoted range : $460000
The houses are well kept & I think people in the area would spot a stranger from a mile away. Exactly like our house in the hills here.
Agent says builders are swarming the area so it's a not question whether it'd sell rather how much someone would pay in the end.
KY
Have been living at Croydon for last 1 yr +....its been a lovely experience for us. I have bought my PPOR here with my family. Transport is closeby, shops are within walking distance, Library is closeby ...and oh yes view of Mt Dandenong is breathtaking.
Havent experienced any form of crime etc .... but said that now robbery, theft etc. happens even in so called 'blue chip' suburns like Malvern, Hawthorn etc.
Overall its nice, green and clean place to live with everything closeby
Havent experienced any form of crime etc .... but said that now robbery, theft etc. happens even in so called 'blue chip' suburns like Malvern, Hawthorn etc.
Overall its nice, green and clean place to live with everything closeby
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KY
My Mike was fixing a machine in Adelaide on Thursday, missed the last flight back to Melbourne, then on Friday morning there were bird strikes at the airport - one plane had to turn back because of birds in the engines!
No wonder your flight was delayed as was his - he had the joy of sitting at the end of the runway for nearly an hour while the flocks of birds were dispersed!!
Cheers
Kristine
My Mike was fixing a machine in Adelaide on Thursday, missed the last flight back to Melbourne, then on Friday morning there were bird strikes at the airport - one plane had to turn back because of birds in the engines!
No wonder your flight was delayed as was his - he had the joy of sitting at the end of the runway for nearly an hour while the flocks of birds were dispersed!!
Cheers
Kristine
Oops! Is my face red!
Was speaking to the property manager today, and the Mission Brown is already achieving rent of $310 per week.
Hey! That's 15.35% gross return on purchase price!
Yes, I should pay more attention to the Landlord Statements but then again, if I knew it all to start with I would miss out on nice surprises like this
The mortgage is not much different to when I bought the property, so this ordinary little house has been helping to pay for other investments for quite a few years now.
Cheers
Kristine
Hi, and the cg keep growing. The market is red hot. A place I really like has 4 offers within the week, unfortunately more than I can pay.
KY
KY
