Looking for a blue chip property up to $700k in Melbourne.

[The_Bludger]

Hi all,

It's time to spend some money again after being out of the game for a few years. I'm thinking Blue chip to diversify a little, but I am unsure of what sort of property to buy. Villa, apartment, flat, house? For those that are going for growth, what sort of properties are you investing in and in what area's?

Cheers.

 

[The Y-man]

I've gone the opposite: 2 x $300k units in Epping and Lalor.....

The Y-man

 

[The_Bludger]

I've gone the opposite: 2 x $300k units in Epping and Lalor.....
The Y-man

Aren't you sick of dealing with crap tenants?

 

[The Y-man]

Aren't you sick of dealing with crap tenants?

Don't know yet - first time into these areas - only really experienced 2 bad tenants to date - one in Coburg, other in Cheltenham....

The Y-man

 

[DaveM]

For $700k you could buy quite a lot

 

[Deltaberry]

Well in Melbourne that's probably about the only blue chips you can buy for that.

 

[The_Bludger]

Funny, but I was thinking a 2 bedroom flat in Malvern, Armadale, etc. Don't really want more houses - too much maintenance! Any advise?

 

[jingo]

Funny, but I was thinking a 2 bedroom flat in Malvern, Armadale, etc. Don't really want more houses - too much maintenance! Any advise?

Hi Bludger,

I'd be careful buying apartments/flats etc in Melbourne at the moment due to the amount of development going on.

I've been looking at houses in Brunswick. This area of Melbourne is thriving at the moment. I like the area between Sydney Road, Lygon Street and Glenlyon Road. You can probably pick up a two bedroom terrace in that area for around $750,000 or so depending on the street and condition of the house.

Regards Jason.

 

[Beanie Girl]

I'd be familiarising myself with the SPPF and LPPF - Minter Ellison speak
SPPF - State Planning Policy Framework
LPPF - Local Planning Policy Framework

Metropolitan Melbourne has approx 30 councils
Approximately 15 Councils had their residential zoning approved signed off by Planning Minister Matthew Guy
These 15 councils had their NRZ, GRZ and RGZ zones approved (all Res 1,2 and 3 zones converted as of 1st July 2014).
I'm talking Res 1,2, and 3 only, this excludes designated Principal and Major Activity Centres (PACs and MACs) and commercial zones.
Approx 10 councils had a neutral conversion, I think, GRZ - 9 metres discretionary height limit
3 councils so far had their planned zoning rejected outright. Back to the drawing board for them. So these councils are 'unprotected' so to speak.
As of 1st July 2014, these councils planning controls are 'in limbo'
None of their planned residential zones were approved
They are under the blanket General Residential Zones (GRZ), I believe it is the 9m, 3 storey discretionary height limit

So could be the other 10 councils that had a neutral conversion on 1st July 2014, I believe. Feel free to correct me here, anyone who knows.

In some councils I'm familiar with, 700k could possibly buy you a 600-700m block with existing house that could be a 5-6 double-storey or possibly even 3-storey townhouse site. 5-6 townhouses on the block, possibly 7 townhouses on a 700m+ block.

I have seen a recent planning application for 8 double storey townhouses on 869m land
I have seen 9 double storey townhouses built on 927m land, ready to live-in now that is close to zone 1 transport, shops, in a Major Activity Centre (MAC)

If you want to know how to profit, you have to familiarise yourself with planning controls, planning law and the new world planning order that has come in for different councils in Melbourne.

 

[Dbz_Vic]

I just read something about that in the Whittlesea Leader today Beanie. Very interesting and definitely something to look into. If i had a budget of $700k and the time, i would buy a subdividable block with change and get right into it.

 

[Redwood]

Funny, but I was thinking a 2 bedroom flat in Malvern, Armadale, etc. Don't really want more houses - too much maintenance! Any advise?

Hi there,

Malvern has a few developments settling now and they are not cheap - same applies to armadale. Houses have land whilst apartments don't, this depends on your investment strategy as well as your long term goal i.e 10 years?

There are a heap of opportunities however the concern the banks have is oversupply and sustainability, then again Melbourne's population will overtake Sydney by 2050, so people need to live somewhere and the outer growth corridors are getting further and further - with no bloody public transport.

Continued chinese investment in Melbourne's housing market will support demand - my advice is invest where the chinese ARE NOT investing. I like the bentleigh/ highett to hughesdale/oakleigh stretch....good schools good infrastructure and good public transport. Not as popular with the chinese as Glen Wav to Box Hill which will impact the sustainability of long term capital growth and yield.

 

[jingo]

If you want to know how to profit, you have to familiarise yourself with planning controls, planning law and the new world planning order that has come in for different councils in Melbourne.

Excellent advise, Beanie Girl,

Depending on your point of view, Melbourne is now a land of opportunity, or, if you hold IP's which are apartments etc, a potential minefield!

Regards Jason.

 

[SamL]

Hi Bludger,

I'd be careful buying apartments/flats etc in Melbourne at the moment due to the amount of development going on.

I've been looking at houses in Brunswick. This area of Melbourne is thriving at the moment. I like the area between Sydney Road, Lygon Street and Glenlyon Road. You can probably pick up a two bedroom terrace in that area for around $750,000 or so depending on the street and condition of the house.

Regards Jason.

I live between Sydney, Lygon and half a block north of Glenlyon and it is a great spot, wish I could afford to buy here! There is a ridiculous amount of apartment projects happening at the moment in the area. I don't know if it is good or bad. It definitely isn't helping the PT as everything is much fuller earlier on the trams.

If you were looking to buy I would stay away from apartments and go for a single fronted period place. Just near me on minnie street a double fronted went for 1.3m just recently. http://www.realestate.com.au/property-house-vic-brunswick-117730499. If you had bought in 10 years ago around here you would have done very well for yourself. An unbelievable amount of money for a relatively small 3 bedroom house.