Leafy suburb Melbourne East?

[Tillie]

If someone remembers, I told about 6 months ago my story how not to shift houses. Eventually everything went well and we have now settled in our new house and like living here.

But after 3 months living here and 9 months since we bought the house, house prices in the area have sky rocketed. A week ago a house in our street sold $500k more than what we paid for. The 2 separate REAs estimated that we should at least see $350k gain, if we decide to sell.

Because we are greedy people, it is really tempting to sell, pack up again and move to the some leafy middle ring surburb in East of Melbourne. So that we can realise the capital gain of this place we naturally have to move to the other suburb that still has some capital growth left and excellent public transport connections to the city. But where, that's the problem... All suggestions are welcome. The budget is about $1m.

We were thinking about Blackburn. But are the house prices already peaked in Blackburn? Any other better suggestions?

 

[D.T.]

Why not just pull the equity and invest?
If you're closer in than the suburbs you suggest, you may have better gain over the long term by staying put.

 

[Genia]

Firstly, congratulations and well done!

About where to move...

It depends on your motive to move further out. Is it to reduce the loan? To get a bigger house? Do you want to move in a more modern property?

How many bedrooms and bathroom do you want? How important is access to schools and public transport?

Please don't forget to consider the cost of sale commissions and stamp duty.

Here are some predictions about hot spots in 2015http://news.domain.com.au/domain/real-estate-news/the-hottest-melbourne-suburbs-for-2015-domain-group-20150313-141ral.html

 

[Tillie]

Staying put for waiting further growth is an option, but I start to be nervous that this is the peak for the area that we currently live or at least the peak will be reached within the next 6 months.

Currently crazy prices achieved due to the interest from mainland chinese buyers. If / when government start policing foreign buyers activities, prices might drop.

 

[Tillie]

Thanks Genia for your quick reply.

We would not actually be moving further out but technically speaking closer in

We need really only 3 bedrooms, but an ensuite is must. Also at least 800 sqm block with the good garaging. Preferring character home either period style or otherwise quirky. We like trees, so rather living in the area with a lot of trees. All honesty only reason to move is greed, capitalise the massive capital growth.

 

[Peter_Tersteeg]

I initially though that the peak occurred last November 2014. Things did start to level out around Christmas and January didn't really do much. Then the RBA rate cut gave the market an extra kick and it appears to be running hot again.

I suspect the market will hold up fairly well if there's more rate cuts. If there's rate increases I can see the party coming to an end very, very quickly. There's a lot of people out there who've only seen rates drop. If they go the other way they're more likely to have a somewhat panicked reaction to this.

The general expectation appears to be that rates will reduce again soon, but probably turn around later this year and rise upwards a bit from there. Of course, the experts change their opinion about every 8 weeks.

Overall Blackburn is a great area. Prices may have peaked, but over the long term there's every reason to believe that Blackburn will continue to perform well. It's possibly that if you wait you could save 10%. Given the desirability of the general area it's also very possible that if you wait you'll pay more.

 

[Genia]

There is an extremely high demand for the larger blocks of land. The supply is low and the competition for those blocks is very high among the home buyers and developers.

I think there is still a chance to buy something in Doncaster East, Donvale, Mitcham, Vermont, Nunawading.

I would keep my eye on Eltham. It did not grow much in price over the last few years, and it has a good supply of the charming houses that fit your description. I think it is not before long when Eltham will be go up in price rapidly.

I would love to move in there, but I am currently stuck in area where my kid attends secondary school.

 

[Tillie]

Hi Genia,

Do you think that there is still room for further price rises in Donvale?

That's where we currently live. when looking at houses year ago it came clear really quickly that we were priced out off Templestowe and finally found the renovated house on an acre with the much cheaper price tag than a similar house in Templestowe.

But as said now the prices are catching up quickly. Eltham is really lovely, but 'wrong side' of the river for us. Crossing Yarra can be really painful experience in peak hour traffic.

 

[jpcashflow]

Hi

Hi,

Just be aware that if you look at another area to move in just make sure the area you are looking at has not sky rocketed as well.

Like others suggested talk to your broker and look at using the equity to maybe by another property.

Cheers

 

[Jk200sx]

Firstly, congratulations and well done!



Here are some predictions about hot spots in 2015http://news.domain.com.au/domain/real-estate-news/the-hottest-melbourne-suburbs-for-2015-domain-group-20150313-141ral.html

Link does not work?

 

[Genia]

Link does not work?

Sorry, here it is

http://news.domain.com.au/domain/re...bs-for-2015-domain-group-20150313-141ral.html

 

[Tillie]

Hi,

Just be aware that if you look at another area to move in just make sure the area you are looking at has not sky rocketed as well.

Like others suggested talk to your broker and look at using the equity to maybe by another property.

Cheers

Hi JP,

Agree with you, there is no point to take money and run from here, if we have to pay peaked prices in the new suburb. That's the reason for my original question. Only considering the move if we can find a undervalued suburb, where prices have not sky rocketed yet., but there is still further growth potential.

Blackburn interest us, but it might be too late. The prices might have already peaked.

 

[Deltaberry]

Surrey Hills. Very leafy, right behind Canterbury.

 

[Tillie]

Surrey Hills. Very leafy, right behind Canterbury.

Hi Deltaberry,

For some reason I thought that Surrey Hills would be out off our price range and have not given it a thought, but definitely have to check it out. Do you think it could be under valued?

 

[dan_89]

Curious to know which suburb you've made these gains? congrats by the way!

 

[Deltaberry]

Yea I think so. If you wanted a bigger land size block you'd just scrape in. If you went for townhouses, then there should be some.

 

[Genia]

Do you think that there is still room for further price rises in Donvale?

The prices of the houses and land will always rise in long term . http://www.realestate.com.au/invest/house-in-donvale,+vic+3111

We bought a house 6 months ago in Doncaster East, at the south border of the Milgate Estate. I believe this pocket was overlooked by buyers. We even did not look for houses in that area. It was the agent who insisted us to have a look at this house there.

 

[The Y-man]

Hi Deltaberry,

For some reason I thought that Surrey Hills would be out off our price range and have not given it a thought, but definitely have to check it out. Do you think it could be under valued?

Tillie,

Are you looking to move into a house or don't mind going into something smaller (apartment even)?

The Y-man

 

[Triton]

Such a large gain in a very short timeframe? How much was ur house? 5mill?

 

[Tillie]

Tillie,

Are you looking to move into a house or don't mind going into something smaller (apartment even)?

The Y-man

Would be looking for a house with at least middle size block. Moving to an apartment from an acre might be too big shock to us

Triton, nowhere near at $5m. When we bought here we knew that we bought well, even thought that might have bought below market value at the time. But in our wildest dreams we did not think that prices would skyrocket like that. Overseas buyers discovered the area and price rises are mainly result of that. I feel that it can not be sustainable for long term.