Maribyrnong Vs Templestowe lower

[Pianissimo]

Hi,

First of all, I don't want to stir up a east vs west war. I grew up in the east while my partner was in west. We already fight over this topic every single day.

We are looking to purchase a house around $700k in one of these area to live for 5-7 years.

The median price and long term trend between two suburbs are very similar.

My question is which one, for investment purpose, is better?

Thank you

 

[K_Raheja]

Please define "better"..yields..cg?

 

[Pianissimo]

Capital gain

 

[Jake Milne]

Statistical POV:

MARIBYRNONG Houses:

The average rate of growth over the last 10 years for this area was 6.8%

In 8 years time, the median house price growth in MARIBYRNONG is projected
to be in the order of 5%+ p.a

Over the last 10 years, the average rental yield for houses for this area was
3.6% (i.e. a house worth $100 would attract $3.65 of rent per annum).


TEMPLESTOWE LOWER Houses:

Average Growth Over the Last 10 Years 6.9% p.a.

In 8 years time, the median house price growth in TEMPLESTOWE LOWER is projected to be in the order of 3%+ p.a

Over the last 10 years, the average rental yield for houses for this area was
3.6% (i.e. a house worth $100 would attract $3.65 of rent per annum).


Personal POV:

Maribyrnong > Templestowe Lower

Reasons:

Maribyrnong is 8km from the CBD whereas TL is 15km
Maribyrnong has trams and buses... TL only has buses
Maribyrnong has much more potential for development whilst also having nice green, tree lined streets.
Maribyrnong has waterfront (Maribyrnong river). Waterfront usually aids capital growth.

If you'd like to know more PM me

 

[cimbom]

An article I read yesterday said Maribyrnong was in the top 10 suburbs for highest unemployment in Melbourne. Probably not that important for a PPOR but something you may consider if you will turn it into an IP in the future.

 

[Jake Milne]

Maribyrnong unemployment is 5.5%
Templestowe Lower is 4.6%

I'd say the difference is negligible

 

[Aaron_C]

Maribyrnong is more popular with younger people who would pay more for rent than say Templestowe where it is mainly baby boomers on their McMansion plots.

 

[Jake Milne]

Maribyrnong is more popular with younger people who would pay more for rent than say Templestowe where it is mainly baby boomers on their McMansion plots.

Statistically the yields for houses are exactly the same so Aaron's point about tenants paying more is incorrect in this area.

A quick look reveals that owning an IP in Maribyrnong could have a slightly higher chance of vacancy:

Vacancy in Maribyrnong is 3.4%
Vacancy in Templestowe is 2.3%

Overall, it'd seem like Maribyrnong is not as good as Templestowe for this fact BUT...

Both suburbs have 92% of private dwellings occupied.

In TL 16% of dwellings are units
In Maribyrnong 50% of dwellings are units.

14% of TL's dwellings are rented
30% of Maribyrnong's dwellings are rented.

So Aaron is actually right that MB is more popular for rental, simply for the fact that there are many many more rental properties, especially units. When you compare unit yields MB does come out on top too. Keep in mind though, we are talking about houses in this thread so it's important to compare apples with apples.

PS - the McMansion comment was funny haha

 

[The Y-man]

Public transport in Lower Temp isn't the best into the cbd.

The Y-man

 

[willfong]

An article I read yesterday said Maribyrnong was in the top 10 suburbs for highest unemployment in Melbourne. Probably not that important for a PPOR but something you may consider if you will turn it into an IP in the future.

I saw that article too and was very surprised. A bit of research and the number they quoted was actually for Maribyrnong Local Government Area (which includes the like of Footscray and Braybrook etc), not the suburb of Maribyrnong. I wish we didn't share the suburb name with the LGA as it often confused people.

Another piece of useful fact for comparison. According to ABS census, Maribyrnong (or postcode 3032 to be precise, which we share with neighbouring Ascot Vale) had a median family income of $1892/week in 2011 (a massive jump from $1056/week back in 2006) as more young professionals moved in. Whereas Templestowe Lower (3107) the median income is pretty static at $1682/week (was $1696 in 2006).

Source:
http://www.news.com.au/realestate/n...ed-in-five-years/story-fncq3gat-1226424131377

 

[Pianissimo]

Thank you everyone for the advice!