First IP - (MELB) Brighton East/Bentleigh/Hampton - thoughts?
- Thread starter aadz
- Start date
G'day All!
I'm new to this forumHope to make some friends with fellow property investors!
Currently looking to purchase my first IP around the Melbourne bayside suburbs area, could someone please give me an overview of the market around the area?
Thank you in advance
Ash
From what I've seen and people I speak to it seems prices dropped about 10% off it's 2010 peak but has made up those losses in 2013. As Aaron said yield is pretty average but CG may go well but that's anyone's guess.
Houses begin at around $1.2m
Would this area provide good CG in let's say 5-10yrs time?
I'm thinking of turning it into PPOR once I have the capital to build a new home
It has in the past, it's a very desirable area to live so I don't see why not. If you want it to eventually be your PPOR then go for it.
Your mixing investing with personal needs
How many years until its a ppor?
If its 5 years or so I would strongly consider buying a couple of cheaper properties with better yields closer to the city.
Yields are putrid and holding costs would be high
You would have less holding costs with better yielding properties which would allow you to save for your building costs much quicker
Maybe the cheaper properties in closer areas might have more scope for capital gains as they are more affordable and more in 'fashion'
How many years until its a ppor?
If its 5 years or so I would strongly consider buying a couple of cheaper properties with better yields closer to the city.
Yields are putrid and holding costs would be high
You would have less holding costs with better yielding properties which would allow you to save for your building costs much quicker
Maybe the cheaper properties in closer areas might have more scope for capital gains as they are more affordable and more in 'fashion'
You will definitely get better yields in other areas but if the property is only being held for 5 years then the cost of selling the IP's to buy the PPOR will likely outweigh the extra rent received.
Also, yields closer to the city are generally just as terrible if not worse than Bayside, to achieve better yields you would have to travel out, not in.
Who knows what will achieve better CG, that's an unknown but Bayside has certainly been a strong performer over the long term.
Yeah your probably right but 2.5% yield is probably what you would get.
So really just choose where you want to live
In my opinion bentleigh is very overpriced
It's pretty much more expensive than Beaumaris now and other than the usual public transport and closer to the CBD arguments I still can't see why. However the Jews have moved in the last few years and pushed up the price
We've decided to look around either Brighton East or Hampton at this stage. Drove around the area for a bit on the weekend and didnt like the "feel" of bentleigh, though i was told that there are good school around that suburb.
We've just settled in Hampton so I'm a little biased but it's a fantastic suburb - good schools, beach, train line & restaurants. The market in Hampton is generally quiet because it's one of those suburbs where people tend to move in and stay for a long time but it's especially quiet at the moment so might take you a while to find the right property.
Good luck and PM me if you need an advice on specific areas or prices as I've just finished about 6 months of research and know the area very well.
Good luck and PM me if you need an advice on specific areas or prices as I've just finished about 6 months of research and know the area very well.
Both Brigthon and McKinnon secondary (public) have very good reputations and are sought after catchment areas. Plenty of private to choose from also. We rented in Hampton for 2 years before buying in Brighton East. You mentioned land so i would be looking at min 600sqm but ideally 700sqm+. Corner or wide frontage. Land size is definitely going to be your safest option for CG. Big investment ($1mil +) for lower yeilds <3%
If you're just starting out on research and have a budget in mind add 10% to the high end of any quoted price range for auctions. Underquoting is the norm in Bayside (if not all of Melb.)
If you're just starting out on research and have a budget in mind add 10% to the high end of any quoted price range for auctions. Underquoting is the norm in Bayside (if not all of Melb.)
G'day All!
I'm new to this forum
Currently looking to purchase my first IP around the Melbourne bayside suburbs area, could someone please give me an overview of the market around the area?
Thank you in advance
Ash
I would leave Bentleigh alone, has had massive growth as was undervalued compared to the others, it is too close now in value and has overcorrected IMO.
I would go Brighton East, beach side just of Hampton st, Hampton is also a good area and you get much more house in Hampton than you do in brighton for same price. Lots of growing familes move from brighton to Hampton to stay in area but move to bigger place.
good luck
G'day All!
I'm new to this forum
Currently looking to purchase my first IP around the Melbourne bayside suburbs area, could someone please give me an overview of the market around the area?
Thank you in advance
Ash
Aadz please spell more out. These areas have markets within markets and there is no point looking at it from a one size fits all point of view.
Whats your budget?
When is this going to be your PPOR?
If you're looking to build, what size parcel do you want?
What are your current preferences for areas?
Is this mainly an investment with a possibility for PPOR or is it mainly PPOR but getting in now while prices/mortgages have come back?
Please elaborate.
We've decided to look around either Brighton East or Hampton at this stage. Drove around the area for a bit on the weekend and didnt like the "feel" of bentleigh, though i was told that there are good school around that suburb.
Just be careful with Hampton it hasn't always been the suburb it is now
It's fairly obvious but there is a lot of commission flats in Hampton also some not so obvious smaller ones.
Still a great suburb but I would steer clear of widdop towers
