Insight needed

[Kel]

Hi All,

Hoping that the more experienced can assist us in finding some clarity on what suburb to focus on for our first IP.

We are looking in and around Melbourne, namingly Glenroy, Moonee Ponds/Travancore and Essendon.

Our main objective is short term capital growth with a negatively geared property (CG to assist with the purchase of the 2nd IP asap). From our research all of the above areas will roughly provide us with similar out of pocket expenses per month.

We are looking at spending about $350k which at the moment in Glenroy will get us an older original 3 bed house most likely on a subdivided block and in the others a 2 bedroom apartment. All returning roughly the same rent.

We are aware that land appreciates/building depreciates, but with rising interest rates will Glenroy suffer with lack of CG and one of the other suburbs be a better purchase regardless of the 'land' size?

Pros and cons on both sides, wish we had a crystal ball (as I am sure we all do!) Any insights and past experiences are greatly appreciated.

Kel

 

[Tuppence]

Having looked around part of your area towards the end of last year - Ascot Vale, Moonee Ponds, Travancore, Flemington, Kensington - for a two-bedder unit, I reckon you'll be lucky to find it for $350k. When you do, it'll be a dump or on a main road - like Mount Rd, for eg.
We found a place in Flemington that we thought was just perfect (almost my favourite part of Melbourne too). $290k-$320 said the agents, tidy, good small block, handy to the station and shops. No balcony though ... sold for $355k from memory. Luckily for us, we'd bought something almost by accident in West Footscray a week or two before - for $330k.
I'd say more like $380k-$400 where you are looking. Don't know as much about the other areas though. good luck with the shopping