Looking to invest in Melton Vic

Melton is a long term investment. 10yrs+
It is just too far away from Melbourne CBD and there aren't many jobs out there.
If you're after a budget suburb with more of a medium term prospect look at Laverton or even Deer Park. If you can up your budget then areas like Sunshine West and Ardeer are a good idea.
 
Melton is a long term investment. 10yrs+
It is just too far away from Melbourne CBD and there aren't many jobs out there.
If you're after a budget suburb with more of a medium term prospect look at Laverton or even Deer Park. If you can up your budget then areas like Sunshine West and Ardeer are a good idea.

Perfect reply +1
 
Melton is a long term investment. 10yrs+
It is just too far away from Melbourne CBD and there aren't many jobs out there.
If you're after a budget suburb with more of a medium term prospect look at Laverton or even Deer Park. If you can up your budget then areas like Sunshine West and Ardeer are a good idea.

Wouldn't even call it a long term investment.
25 years ago they said Melton would be a city of its own. Still too much land and no other amenities or infrastructure to support growth.

The holding cost difference between Melton at 250k vs say deer park at 320-350k is not much more.
 
Hi Kinnon Bell,

nothing in particular to be honest, I just a friend of my suggest me that his sister bought a investment property in Melton recently and this is her 8th investment property so I just guessed she must have done her homework that's all.
 
Melton is a long term investment. 10yrs+
It is just too far away from Melbourne CBD and there aren't many jobs out there.
If you're after a budget suburb with more of a medium term prospect look at Laverton or even Deer Park. If you can up your budget then areas like Sunshine West and Ardeer are a good idea.

+2 spot on.
 
Hi Kinnon Bell,

nothing in particular to be honest, I just a friend of my suggest me that his sister bought a investment property in Melton recently and this is her 8th investment property so I just guessed she must have done her homework that's all.

Her strategy may be different to yours as far as investing and end goal goes. If I were you I would define my own plan and work towards that and find suburbs and properties that fit your plan.

I think even decent growth in 10 or so years may still be optimistic as there is a lot of land that still needs to be filled and the fundamentals aren't there. This is just my opinion though but I am 'betting' a decent amount of cash on it as I am just about to put on the market one of my properties in Melton as I don't see much happening in the short to medium term and believe the capital held there is better invested elsewhere. Only time will tell as to whether that decision will pay off though. Either way, I still hold my old PPOR in Brookfield.

There's also Bacchus Marsh on the other side which is a little further out, but doesn't have that Melton stigma attached to it and I see more growth happening in the Marsh in years to come as opposed to Melton.
 
Her strategy may be different to yours as far as investing and end goal goes. If I were you I would define my own plan and work towards that and find suburbs and properties that fit your plan. QUOTE]

I guess if you look at it in terms of price and yield it can tick the boxes. But fundamentals of the area, land availability, demographics (non numerical factors) say otherwise about Melton.

I was born there, my mother said they have been saying for 30 years now it will be a satellite city in itself...

In addition, my boss owns hectares and hectares of land as you come into Melton (near the roundabout). They are going to develop a hub there in time, but that too is a risk as they require major retailers to want to be there but there is not the demand as yet, so a strategy is to split their land to put a resi section in. So instead of the old adage "build it and they will come", it is more like "put some of them there, build it and the rest will come"...

I would rather spend the same cash in Ballarat or Bendigo as they are genuine small satellite cities...
 
I don't want to get into disagreements here, but as an investor you do your own due diligence and if the research stacks up for you, then make a decision based on your own investment plan and financial conditions not on what others say.

Most of the posts in this thread say ... too much vacant land, no capital gains, high unemployment, no infrastructure, wouldn't touch it with a barge pole etc, etc ..... That's fine and probably valid comment. I was hearing these same reasons for not investing in Melton back in 2006, when we bought our first Melton IP. It doesn't mean you can't make money.

For the record ... we still own property in Melton and we have sold one of our IP's. The one we sold we paid $160k (06) and sold for $256,000 (2012) after a $5,500 cleanup/reno. We held the property for 6 years. Not a fortune I grant you, but a reasonable return.

Should people invest in Melton ... Make your own mind up, don't let other people make the decision for you. Can you make more money investing somewhere else ... highly likely, but that probably goes for any location.

Mystery

PS ... It can be a bugger trying to find good tenants in Melton, especially in the older style properties. When you get a good one hang on for dear life .. :)
 
Agree with you mystery....Melton is now back in radar as places like Plumpton and Caroline Springs...price people out.....some reasonable returns to be had.

I don't want to get into disagreements here, but as an investor you do your own due diligence and if the research stacks up for you, then make a decision based on your own investment plan and financial conditions not on what others say.

Most of the posts in this thread say ... too much vacant land, no capital gains, high unemployment, no infrastructure, wouldn't touch it with a barge pole etc, etc ..... That's fine and probably valid comment. I was hearing these same reasons for not investing in Melton back in 2006, when we bought our first Melton IP. It doesn't mean you can't make money.

For the record ... we still own property in Melton and we have sold one of our IP's. The one we sold we paid $160k (06) and sold for $256,000 (2012) after a $5,500 cleanup/reno. We held the property for 6 years. Not a fortune I grant you, but a reasonable return.

Should people invest in Melton ... Make your own mind up, don't let other people make the decision for you. Can you make more money investing somewhere else ... highly likely, but that probably goes for any location.

Mystery

PS ... It can be a bugger trying to find good tenants in Melton, especially in the older style properties. When you get a good one hang on for dear life .. :)
 
Still would rather spend an extra 40-100k and buy in ardeer or deer park or St. Albans than Melton. Extra holding costs are minimal.
You are right, money to be made anywhere, but u wouldn't be buying in Melton with a cg priority.
I don't want to get into disagreements here, but as an investor you do your own due diligence and if the research stacks up for you, then make a decision based on your own investment plan and financial conditions not on what others say.

Most of the posts in this thread say ... too much vacant land, no capital gains, high unemployment, no infrastructure, wouldn't touch it with a barge pole etc, etc ..... That's fine and probably valid comment. I was hearing these same reasons for not investing in Melton back in 2006, when we bought our first Melton IP. It doesn't mean you can't make money.

For the record ... we still own property in Melton and we have sold one of our IP's. The one we sold we paid $160k (06) and sold for $256,000 (2012) after a $5,500 cleanup/reno. We held the property for 6 years. Not a fortune I grant you, but a reasonable return.

Should people invest in Melton ... Make your own mind up, don't let other people make the decision for you. Can you make more money investing somewhere else ... highly likely, but that probably goes for any location.

Mystery

PS ... It can be a bugger trying to find good tenants in Melton, especially in the older style properties. When you get a good one hang on for dear life .. :)
 
Hi Guys,

Its my first post on the forum and looking for some expert advice in terms of my first investment property.

I am based in Sydney and looking to invest in Melton Vic, a few of my friends already have invested and reckons its a good area to invest in.

The question is whether to go for a home and land package like they did or should I go for a more older houses with bigger land area close to Melton city center.

Home and land package - $325 to $340K with rent of about $300 per week

Older house with bigger land area also comes to around $340-$350 K but rent is about $260-$270

With rent yield either option will not be cash positive in the short to medium term.

I am just guessing that if i go with bigger land area I would have option to subdivide and get better capital growth.

Seeking advice from seasoned pros here to help me buy my first investment property.

So I took a drive over the weekend to Melton and other nearby areas and was surprised to see so much land on offer.

While in Melton I also took some time to drive to Armstrong Creek, Geelong and it looks like that is a better opportunity over Melton.

I read the thread http://somersoft.com/forums/showthread.php?t=34761&highlight=Armstrong+Creek

Need some advise what is better now as the thread is quite old and a lot of things have changed since so some new perspective would be appreciated.
 
There is money to be made in suburbs like Melton.
IMHO it is not in buying house and land packages on unit sized blocks and waiting for gains for the all the reasons stated around land etc. Someone will just come and build instead of buying yours in a few years.

It is in the older properties that can be cosmetically cleaned up cheaply, or in the mortgagee type sales where you can pick a newish place for under replacement value(opportunisitic).
The saying you make money when you buy applies strongly here.

Like Mystery i bought one in 2006(7% yield day one) and 3.5 years later sold for a 70% odd gain.

I still hold one which i bought 8 years old and couldnt have built the house for the purchase price, let alone the land but it has still only gone up about 50% in 8 years, but holding costs are non existent.(opportunistic)
The conundrum is the yields are highest in the lower end properties and the tenants can be hit and miss. The mid range in my experience has been good tenant wise.

Good luck.
 
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