Greensborough / Montmorency / Eltham

[fitzy1903]

Hey guys,

I've been researching suburbs over the past few months around the Melbourne region and have been tracking a few places which have higher owner occupancy rates, not huge amounts of growth over the past few years, decent public transport, good vacancy rates and within the $500-$600k median house price range.

I come from WA so have minimal knowledge of the areas unfortunately. However, I have landed upon a few areas which have sparked my interest.

Greensborough, Montmorency and Eltham.

They have had a bit of growth (~5% growth in the past year), however they have the train lines, good owner occupany rates and within my price range.

What is the suburb like? A bit old? Lowish yields that could hurt my cash flow? Any negatives?

It also appears to have some large blocks, so later down the track (10 years or so), there could be possible opportunities to sub-divide possibly? I'm bit of a rookie but my strategy is to buy which won't hurt my cash flow too much (not fussed if I'm $300-$400 a month out of pocket for now), hold for 10 years (hopefully get some decent growth), and then subdivide when I've got the skills and expertise to go about it.

Thoughts?

 

[Peter Parker]

Undulating, leafy, liveable, middle-class suburbs full of 'relaxed and comfortable' baby boomers.

Not known for nightlife. No apartments. Not multicultural. Little population growth. NIMBYs.

Trains and reasonable bus services but no freeways - people complain about driving.

Hobby farms further out. Eltham in particular is a bit like Kalamunda, Lesmurdie or Mundaring.

 

[The Y-man]

Undulating....

"Undulating" may be an understatement in much of these suburbs - many properties might be more aptly described as "cliff face"

Make sure you check the contour map (free from http://services.land.vic.gov.au/maps/interactive.jsp
before venturing forth)

Also they are very "green" suburbs - meaning many houses have close contact with large trees, so watch out for water damage where gutters have not been protected, root systems, termites, fires (not as bad as warmer climes, but still...) etc

Having said that, postcode 3088 is massive (covering Greensborough, Briars Hill, St Helena). The areas adjoining Bundoora and Watsonia are a bit flatter and "drier".

The Y-man

 

[fitzy1903]

Great, thanks guys.

And especially the comparison with the WA towns Spiderman. Up until last year, I was in Kalamunda so it gives me a good idea.

And cheers for the contour maps link Y-man, never seen it before - very useful!

 

[Tillie]

My preference order is Eltham (especially Eltham South) near Yarra river, Montmorency and after that Greensborough. Not sure about prices nowadays, but all of them are respectable leafy suburbs with train line to the city.

 

[Tillie]

Yesterday I met REA in a party and he operates Greensborough, Eltham, Montmorency area. According to him price growth is just starting in the area, but it has not yet gone as crazy as Eastern suburbs. According to him people that are priced out from Doncaster, Templestowe, Ivanhoe are now starting to move further out and putting pressure on prices. So it might be a good time to buy in these areas now, before 'silly season' arrives there too.

 

[chrispy]

I live in the area.

Prices are starting to go silly with large numbers at the auctions and quite a few bidding.

One house that was auctioned last weekend was expected to bring upto $770k. There were 3 bidders and it went for $845k.

Another nice house which was expected to go over the $1m went for $1.408k. There were many bidders.

I have been keeping a check on how many houses per weekend are selling in the Montmorency/Greensborough selling over the $1m and it appears to be in the vicinity of approx. 6 per week.

Unfortunately the rents have not gone up. I currently have a vacant rental which will go back on the market next week but at the same price as a year ago. I have spoken to my Property Manager and he said rents have not moved.

Bundoora is usually a bit cheaper, it does not have the train but does have a tram into the City. With RMIT close by rental vacancies are usually low.

Hope this helps

Chris

 

[fitzy1903]

Yesterday I met REA in a party and he operates Greensborough, Eltham, Montmorency area. According to him price growth is just starting in the area, but it has not yet gone as crazy as Eastern suburbs. According to him people that are priced out from Doncaster, Templestowe, Ivanhoe are now starting to move further out and putting pressure on prices. So it might be a good time to buy in these areas now, before 'silly season' arrives there too.

Thanks mate. Yeah, I see that Doncaster, Templestowe and Ivanhoe are quite expensive. Are they similar in character when compared to Greensborough, Eltham and Montmorency?

 

[fitzy1903]

I live in the area.

Prices are starting to go silly with large numbers at the auctions and quite a few bidding.

One house that was auctioned last weekend was expected to bring upto $770k. There were 3 bidders and it went for $845k.

Another nice house which was expected to go over the $1m went for $1.408k. There were many bidders.

I have been keeping a check on how many houses per weekend are selling in the Montmorency/Greensborough selling over the $1m and it appears to be in the vicinity of approx. 6 per week.

Unfortunately the rents have not gone up. I currently have a vacant rental which will go back on the market next week but at the same price as a year ago. I have spoken to my Property Manager and he said rents have not moved.

Bundoora is usually a bit cheaper, it does not have the train but does have a tram into the City. With RMIT close by rental vacancies are usually low.

Hope this helps

Chris

Cheers for the information Chris. Since putting this up post, I've checked the price growth over the past few years, and it appears they've had 7-10% year on year growth for the past two years. Might've missed the boat in these suburbs..

 

[The Y-man]

Thanks mate. Yeah, I see that Doncaster, Templestowe and Ivanhoe are quite expensive. Are they similar in character when compared to Greensborough, Eltham and Montmorency?

No.

I've lived in Monty and Doncaster (East).

Monty, Eltham, G'Borough are much more "country feel" IMHO

Don't know how Ivanhoe made it into the mix - totally different area/demographic.

The Y-man

 

[oc1]

No.

I've lived in Monty and Doncaster (East).

Monty, Eltham, G'Borough are much more "country feel" IMHO

Don't know how Ivanhoe made it into the mix - totally different area/demographic.

The Y-man

Walking down the main strip in Monty feels like slow motion; very laid back. Quite nice.

 

[The Y-man]

Walking down the main strip in Monty feels like slow motion; very laid back. Quite nice.

Yeah, I think the trains come in a day late too......

The Y-man

 

[Tillie]

No.

I've lived in Monty and Doncaster (East).

Monty, Eltham, G'Borough are much more "country feel" IMHO

Don't know how Ivanhoe made it into the mix - totally different area/demographic.

The Y-man

I mentioned Ivanhoe because REA mentioned it in a party. According to him people have sold their properties in Ivanhoe with the massive profit are moving further out to Monty and Eltham.