I'm interested to get people's thoughts on Hampton Park (Melbourne) as a potential area to invest in. The place I'm looking for subdividable property around 350K and build one in back and rent front house.
I like it. It's in a good area (closest housing to Dandenong cbd) and the main street has been completely redeveloped. Houses there are 300k I'm not sure if you could reno and flip them for 350k+ in the short term, developing would possibly work. Growthwise I don't see thew average house jumping from 300k to 350k in growth anytime soon. Despite it being a good area it's awfully far out and there are equally priced options in much more established suburbs.
What about Noble Park? It has 3 level crossing removals projected over the next 8 years, surely this will boost house prices although I'm too afraid to take the risk and buy there myself relying on that for growth. The area has a high Sudanese population and is getting worse from what I hear, houses aren't much more than Hampton Park and are far more established. Location wise it's next to Springvale, Mulgrave and Keysborough. Despite the area looking risky I see more potential in the area.
May be a naive angle but potentially I see 350-400k homes in Noble Park reaching 500k in a few years but couldn't see Hampton Park being worth 400k.
Noble Park is in a prime location close to all our blue chip infastructure, it's old with a lot of high incomes the population/demographic issues are holding it back and once these kind of things disappear (ie footscray, ashwood) the area booms like crazy.
The advantage of Hampton Park is that it is an eastern suburb of Melbourne. However Hampton Park to me does not have much potential. It is around 40km from the city, it is not near the bay, it is a very long walk to a train station (Hallam station is the closest) and the amenties around Hampton Park are a joke. It has all the hall marks of a slum.
I'm not a fan of the whole Dandenong area (I went out with someone for 6 years from that area so I know a bit about the area) due to it being so far out from the city and the amenties in the area are a bit of a joke. If you really want to invest in that area then Doverton and ENdevour Hills have more potential. Actually any suburb has more potential than Hampton Park.
I would be looking to the west of Melbourne (not Melton, though Melton is at least cheaper than Hampton Park) for an investment. Sunshine (though prices are rising quickly) and St Albans are places I would be looking at. You can get a property in St Albans for a similar price than Hampton Park, however St Albans is walking distance from the train station (if you buy in the right part), has more shops than Hampton Park and is a lot closer to the city than Hampton park (less than 20km from the city). The only problem with St Albans is its repitation and it is not in the east. However the West is developing quickly.
I think there are better areas to invest vs Hampton Park.
Ask your self this:
1) What does the area offer in terms of public transport?
2) Where is the area heading in terms of prices or what buying cycle is the area in at?
3) People who buy to live in or rent in Hampton Park live in the area because they usually work in the area.
Employment has been struggling in the area lately as well!!!
You won't find anything in Noble park for the 350k budget that you can develop. I totally agree with JamesP on the future of Noble Park as it will follow Dandenong but I don't see this happening for at least 10 years.
But if it was my money I would be looking for a block out towards Officer or Clyde to build a spec home, sit on it, gain some equity and do it again. Less taxes, less maintenance, less risk and less head aches.