Investment in Melbourne

[R1965]

Hi all
I am looking at purchasing an investment property with a budget of $450 to $500k. I am considering Lyndhurst, tarneit, Glenroy. Would appreciate if you could advise if the growth prospects in these suburbs are good. Or are there any other suburbs which I should be considering.
Thank you

 

[albanga]

There are plenty of threads about the Melboure property market if you do a simple search.
Just to quickly respond to your initial thought, Glenroy yes, the other 2 no way.

 

[R1965]

Thanks. But thought property close to lynbrook station would be a good buy?

 

[jpcashflow]

hello

Hi,
Before looking at an area what do you want out of this property?

E g I have clients who want a property to renovate, develop or hold

 

[R1965]

Hi-
I am looking at holding the property for 5-7 years or even more. will be looking for capital growth. Definitely not for re-development at this stage.

Being my first IP, am struggling to determine the areas to concentrate on. Any advise is appreciated.

I live in eastern suburbs and hence looking at Lyndhurst. However, open to other suburbs as well..

 

[Jake Milne]

Hi R1965,

Glad to hear you're looking to invest. Couple of questions first:

1. Do you currently own your own home?
2. Are you using equity?
3. (If yes to 2) What LVR will this take your home to?
4. This is your first IP, yes?
5. What kind of amount would you be comfortable with on a weekly basis to hold a property?
6. How did you arrive to $500k as your budget?
7. What thought process did you use to choose those suburbs?
8. Are you only considering houses?
9. What purpose will this investment serve? (i.e. Buy,set, forget til retirement; Buy&Hold then use equity to build portfolio; Future cash flow/residual income)
10. Is this property solely an investment or would you consider moving into it or having children move into it in the future?

 

[R1965]

Hi jake - answers to your questions
1. Yes
2. Yes
3. 80%
4. Yes
5. $250
6. Used $100k of equity as 20% deposit. Plus am comfortable with interest only payments on a 500k loan.
7. Not much has gone in identifying suburbs. Couple of friends said these suburbs have good growth prospects. Looking for advise on this aspect.
8. Yes. But town houses/units if there are growth prospects.
9. Must admit that I am not clear on this. At this stage it's to buy a couple of properties leading upto retirement.
10. Solely as investment.