IP In Melbourne under $375K

D

Doober

Hi,

Just about to start my search, just looking for some advice on the type of property that might be best for CG in Melbourne at around the $375K range. Its not much to work with I know.

Does anyone have any opinions if id be better at trying to grab a small apartment in a more expensive area such as Carnegie/Hawthorn/Malvern etc if thats even possible or perhaps look a bit further out for something bigger?

CG is my primary focus over 7-10 years and have been out of the melb market for a few years

Many thanks
 
I think it's possible but you would need to focus your search around the north to western areas. Perhaps something like a 2 bedroom unit in Brunswick.
 
cimbom said:
I think you'd be pretty lucky to get a 2 bedder in Brunswick for that price
Click to expand...

+1

Maybe a one bedder in St Kilda? Jake on these forums seems to have a decent handle on growth areas in Melbourne. The population projections for Melbourne over the next few decades are pretty healthy so if you look for something in the middle ring (let's say 2 to 12km), 1/1/1 (budget probably limits you to this), not new, with scope to improve/renovate, not on a busy street, in a complex of 18 or less units then you would probably be well placed for long term CG. Look for areas that are land locked (i.e. not estates out in woop woop with loads of land supply).

I'd be no good at suggesting actual suburbs though, I'll leave that to the experts.
 
I am also in the same boat - looking for an IP with similar budget. Always a bit hard to decide whether to go for a old unit in established suburbs or go for a house in new suburbs.

Will wait to see what experts have to say.
 
Don't buy a house in a new suburb. You pay a premium for "new" and after you buy, there will always be a house that is newer than yours
 
You won't be able to afford anything worth buying until your in mid ring suburbs. 1BR's in say Murrumbeena or Carnegie would be in your price range but capital growth at this price range probably isn't as good as other options like buying a reasonable house in say Ballarat or even looking interstate i.e. QLD.

Bluntly, Melbourne isn't the best place to invest for capital growth with less than $400k.

I'd suggest thinking twice before putting your hard earned money into outer ring development areas like Taylors Hill, Craigieburn, Doreen, Tarneit and the like. There's a lot of land that can still be built on which means you don't have a cap on supply and thus demand can't push prices higher for good equity returns. Also, it's often just as cheap to buy here as it is to rent so vacancy rates are higher than desirable inner suburbs like Fitzroy North for example.
 
cimbom said:
I think you'd be pretty lucky to get a 2 bedder in Brunswick for that price
Click to expand...

I did a quick search before making that comment and there are a couple of 2 bedder units in that price range selling at the moment.
Also look at sold and a few sold around the 350k mark back in December.
 
Buying is difficult with that amount.
Other members may be able to vouch for Eastern and Southern suburbs but as far as north west goes, you may be able to secure a 2bd 70's single story unit/villa in pascoe vale, oak park, Essendon, strathmore, Brunswick. Some of those will be pushing your budget though.
You will be able to get one in Fawkner, which backs onto coburg. Doesn't have the best reputation, but I feel prices will increase due to it leaching of neighbouring coburg and pascoe vale etc.

A bit further out you could buy a house with decent sized block in say deer park, with potential to develop or do a dual occ...

I also read Margarat Lomas' tips for the year and she was keen on carrum downs, which has a median I think of 375k.. That is within your budget.

Best of luck
 
simtr said:
Close proximity to sewage farm could be a driver?!
Click to expand...

My thoughts exactly..
I thought she was clutching at straws a bit.
Saying neighbouring Carrum and Bonbeach has median of over 500K, but Carrum Downs only 370ish. I couldn't draw the correlation myself.
I think it was a property observer article..
 
I just would like to share a couple of things about St Kilda.

Firstly, the apartments are build there in huge quantities, generating the risk of oversupply.
Here is the sourse:
http://news.domain.com.au/domain/re...elbournes-middle-suburbs-20150318-1m1eoq.html

If your search realestate.com.au for 1 bd apartments for sale in St Kilda, you will find around 77 listings there.

The quality of a new apartments is compromised (I think it applies to most new properties Australia wide)

One of my friends was very happy when he eventually sold his 2 years old investment 1bdr apartment in St Kilda in January.

This one was causing him a grief and headaches from the very beginning. Tenants would not stay long, and it was hard to rent out. Very low rental return.

Lots and lots of manitenance requests have already been raised and fixed. He even had another maintenance request over the short period between signing the sales contract and a settlement.

Another person I have spoken to, is going to sell a ground floor apartment in St Kilda. It is the older one, but the major issue there that it is a ground floor apartment with a little courtyard. It constantly gets problem from people jumping over the fence, urinating, graffiti and so on.
 
Hi

Hi,

With that price you could look at other options... Why an apartment?

I just bought another IP two weeks ago for $320,000 and only 20KM from Melbourne CBD.

I am just in the process of obtaining a permit to build a unit at the back.
 
Dallas is well inside the 20km area :)

20km takes you out to northern edges of Epping (southern edge of Wollert), Roxy Park, Keilor Nth, T-Lakes, and almost out to C-Springs.

The Y-man
 
Hi

And the correct answer goes to Benny...

I went to an auction on Saturday in Ardeer and the property sold for $408,500.

Deer Park is also heating up and I know have 1 PPOR in the area and two IP's in the area.
 
You must log in or register to reply here.

Similar threads

S
Where in Melbourne
2
Replies
24
Views
6K
littletee
L
G
St Kila East IP, growth not that great?
Replies
4
Views
2K
jpcashflow
J
S
350k for first IP
Replies
16
Views
3K
scha9799
scha9799
Centurion
Thoughts? West Melbourne, first investment
Replies
9
Views
2K
KoopaTroopa
K
P
Clayton area VIC
Replies
4
Views
1K
jpcashflow
J
Back
Top