Melb - Hadfield/Fawkner V Epping

[onion33]

Situation: Looking to buy IP2 around $350k-$450k (hopefully the lower end) in Melbourne. Long term hold for capital growth.

Question: Which suburb would you choose and why? I'm tossing up between Hadfield, Fawkner or Epping. I've provided some data to assist.

Hadfield:
Median price: 470k
Distance to CBD: 12km
Owner occupier: 74%
Vacancy rate: 2.6%

Fawkner
Median price: 434k
Distance to CBD: 12.5km
Owner occupier: 71%
Vacancy rate: 1.2%

Epping:
Median price: 398k
Distance to CBD: 19km
Owner occupier: 74%
Vacancy rate: 2.6%

Thanks in advance for your thoughts backed up by reasons please.

 

[Jaggannath]

Either Hadfield or Fawkner if you can afford it, though I caveat it with the fact I'm not familiar enough to comment on where they are in their cycles. I'd prefer Fawkner for proximity to the major freeway north and the train line, and it's closer to the end of the tram line.

 

[The Y-man]

FYI from ABS 2011 census

Household income Fawkner % Victoria % Australia %
Less than $600 gross weekly income -- 34.9 -- 23.8 -- 23.7
More than $3,000 gross weekly income -- 3.6 -- 10.4 -- 11.2


Rent weekly payments Fawkner
Median rent 283

Households where rent payments are less than 30% of household income Fawkner 90.2%
Households where rent payments are 30%, or greater, of household income
Fawkner 9.8%



Household income Epping (Vic.) % Victoria % Australia %
Less than $600 gross weekly income -- 18.8 -- 23.8 -- 23.7
More than $3,000 gross weekly income -- 6.5 -- 10.4 -- 11.2

Rent weekly payments Epping (Vic.)
Median rent 300

Households where rent payments are less than 30% of household income
Epping 91.6%
Households where rent payments are 30%, or greater, of household income
Epping 8.4%


The Y-man

 

[Peter Parker]

Fawkner is a bit of a backwater suburb. You're hugely dependent on Sydney Rd. It's divided from Reservoir by the creek and there's no east-west roads between Gaffney & Mahoneys. It's handy as the crow flies but not on the speedometer.

It's been a while since I last visited but it struck me as not a very happening place, barely more alive than its cemetery over the road.

Still, for the city worker who wants an affordable house within 20km from the CBD and doesn't care much about the surroundings, it, like Laverton, St Albans or Coolaroo, may be a reasonable choice.

 

[onion33]

Some really useful stats there Y Man. I wouldn't have thought to look at that particular data set from ABS.

What about that there is a lot of vacant land near Epping?

 

[oc1]

Buy towards the upper end of your range and go for the largest block in Hadfield and landbank. If you do this just make sure the property you buy isn't earmarked for the Neighbourbood Zone as this will nullify your strategy.

Osar

 

[The Y-man]

What about that there is a lot of vacant land near Epping?

That's the Wollert end. Not much infrastructure there (and the main power lines go through that end) so not much competition at present.

If you're buying in the area, stay south of Findon rd.

The Y-man

 

[tone1]

If you can afford it, Hadfield is nice. I've visited recently and development/gentrification had started, probably from the spillover of those who can't afford Pascoe Vale and Coburg. Train lines to either side of the suburb is another big plus, Tulla is not far away.

 

[onion33]

Thanks for all the information everyone. Very helpful.

My dilemma - House rent is about the same as a townhouse in that area, yet the mortgage is so much more. I know the capital growth would be way more, but not sure I can stomach the cash flow difference at this stage of my life. We'll see!