Maribynong Town Houses

[WebBoard]

From: Rod Myers


I am interested in investing in a townhouse (s) in Maribynong. BUT have some reservations, one they are building them in large numbers at a fast rate, at high prices like $400,000 plus. could you get good rental returns, get good capital growth, is the price realistic in terms of the market? Or is it the price that the developers have manufactured?

Relialble reports suggest that a population explosion will occur in the area.

I am hesitating in buying because I fear that there maybe an oversupply of overpriced properties. What does this forum think? any feed back would be appreciated.

 

[Kristine..]

Reply: 1
From: Kristine .


Rod

The City of Maribyrnong

http://infowest.maribyrnong.vic.gov.au/

has an excellent website. If you explore it, you will find that population forecasts are exciting, and indicate that the population of the 'postcode' of Maribyrnong will treble by approx 2010. Not all of the municipality will grow, in some areas the population is expected to fall, but in the target postcode there is plenty of new development to bring in the expected rise in residents.

This is largely due to the Waterford Green and Gordon Streets areas, which used to be Defense Department holdings.

You can also see the socio-demographic profile of the area, based on the last Census figures.

www.realestate.com.au will give you current rental figures, also current and recent sale prices. You may also find www.domain.com.au 'suburb snapshot' factually helpful.

There is an overall softening of the rental market in Melbourne, but make no mistake, this is short term, and although any landlord on the open market may currently have to accept 5% gross (3-3.25% net before tax and or depreciation), remember it is how long you are in the market for that makes the difference.

Not everybody buys to rent, and investors have been known to change their minds and choose to live in. Vacancy rates are not much different to anywhere else.

The new townhouses in these 'infill' sites are creating a whole new market which previously did not exist, and can in no way be compared to the 1960's yellow brick housing stock, or earlier, unrenovated houses, in the surrounding areas.

This new stock is 'state of the art', and builders active in the area eg Burbank, have really designed for the market, including the SOHO (Small Office Home Office) demand.

People who bought in the first stages of Waterford Green have seen good growth, in part boosted by rises in building costs, the inclusion of the GST, and genuine rental and buyer demand.

I was involved for a while with sales in Maribyrnong, and found that people really couldn't get enough of built and off the plan sales. Nothing like this has been seen in the West before, and with Highpoint expanding again, the tram, all the tertiary education facilities, and the increase in median incomes, this area has a lot of catching up to do.


Good luck

Kristine

 

[WebBoard]

Reply: 1.1
From: Rod Myers


yes Kristine

thanks

but will these people rent? or will they buy?

 

[manny]

Reply: 2
From: Manny B


Hi Rod,

from what I have seen, Maribyrnong is doing well & should continue to do well in the future, as the river is close by & has access to transport (trams/buses) & is close to Highpoint shopping centre... $400k sounds a little high, I would shop around a little as a few months back an agent I know was trying to sell me a townhouse in the area for $290k, which was fairly new & had granite mod cons (this agent also thought the area will take off in the not too distant future)... By the way, from what I have seen, IPs rent fairly easily there...

Cheers,

Manny.