Investment property in Sydenham, Melbourne

I recently found a villa just 5 minutes walking away from the Watergarden Train Station, and walking distance to the Watergarden Shopping Centre, schools, child care, gym. The villa is 3 bed room, 2 bath room,2 car park.The asking price is $285,000, rent will be $320 per week or more,Body coporate fee is $2000 per year.

Last year, this townhouse complex had good increase because of First Home Buyer. I am not sure if this villa would be a good investment if I buy now. Will Sydenham have big potential for the captial growth? I heard that there going to build MYER in Watergarden shopping centre, is this will increase the value of the property in this area quicker?

I am a newer for investment property, still in the learning process. Hope someone can give me some advise.

I'll bet that the villa is in Sydenham rd, with the street number in the 300's.

Don't look at asking prices, most sell for $250-270k.

I first valued townhouses there in 2002 at sale price around $230k.

I come back into valuing again in late 2007/early 2008 .. and they are selling/valued at $230k, having apparently fallen to $200- 210k in the intervening period.

With the FHBG they have managed to get up to around $260k ..

Great location in relation to Watergardens .. do your figures after the body corporate and all expenses on your yield/ rental return.

These have been one of the worst performing investments in the area over the past decade .. people are put off by the body corporate expenses.

However .. it still represents good size townhouses in a decent location in relation to amenity and transport and and a very low entry point.

I would consider one as a PPOR .. but not as an IP given to poor growth over two booms.

This is just my opinion.


Why did this area perfom so badly in the previous years? Is it because there were no watergarden shopoing centre before? Or it just too far away from city?
Watergardens has been there a reasonable amount of time... the body corporate amount for a free-standing villa seems rather high
Getting on the Calder is one big PAIN in the rear.

I used to work at the vet clinic near Watergardens and can only say I wouldn't invest or live there personally.

Also you might live within walking distance to the shops but they aren't really designed for pedestrians. You really need a car to do Spotlight, main shops then drive over to Bunnings etc. Just my humble opinion, ofcourse.
The townhouses aside, My partners parents, sister and cousin all have new houses in the suburb next door , Taylors Hill. 2 yrs ago the blocks were $165K, now if you can find a block they are selling for around 265-270K.

As for the townhouses on the main road. I know someone who owned one in a complex where you had to pass through a gate w a keycode to get in. they held it for 1.5yrs and made a gain of $72K. But i cannot speak for the new ones.
I live in the east, but thinking of getting an IP in the west, and two options came up- Sydenham or point cook- for a budget around $305K budget, anyone got any ideas or advise which one better in term of growth?