Melb - Healesville, Berwick, Mornington or Somerville?

[Propagate]

Hi all,

We’re almost ready to pick up an IP. We were waiting until we were in our new build PPOR to see how much we could draw down on our existing loan to fund the next deposit, we’re now in and our finances are sorted – just waiting for the bank to confirm final figures and we’re good to go.

So, we have a budget of $350k but now the ‘analysis paralysis’ is well and truly kicking in and we’re really struggling to decide where to buy.

Initially we were set on Mornington as we know the area quite well and would like to have something down on the Peninsula. Another option is Berwick as that is where we live, so again we know the area. Both of these would see us with a nice unit or older smaller house for our budget. There are a few properties around in both areas, but what has put us off is the amount of vacant rentals that are also available – making for stiff competition.

Another area that was on our mind for a long time was Healesville. Again, somewhere we like ourselves. You can pick up a nice house and there are literally no available rentals at the moment. Agents for the area tell me they have quality tenants waiting for rentals to becomes available as there is such a shortage of stock. The worry with Helaesville would be the distance out from the city, and maybe last years fires may put people off?

Lastly, and so far probably our favorite, would be Somerville. We have friends in Somerville and have seen their house price steadily increase over the last 12 months, The area is nice, well situated for a lot of things and there are some nice places within our budget. There are not many rentals available at the moment either.

Thoughts on the above areas would be greatly appreciated, as well as any suggestions on other places to look for our budget. We’d prefer a house on it’s own title over a unit or apartment – but for $350k that’s looking less & less likely.

Cheers.

 

[Leikela]

All those places are a long way out. I'm no expert, and I'm sure others will be able to give you more informed advice, but if I had to choose from those four, I'd probably go Berwick. Mornington & Healesville, whilst nice places, are miles away from the CBD. I don't know Somerville at all.

$350K is a pretty decent budget which should see you be able to get a house quite easily I would have thought. Have you thought about Frankston, I'd go that before Mornington. Or the next place I want to look at myself is Altona Meadows, you'd get a house there for about $350K.

Just my two cents worth, I'm sure more informed experts on this board will be able to offer some more advice.

 

[toony]

My suggestion is to jump in where you are comfortable. I had no idea where to buy so I bought my first 2 bed unit near home in 1997. Once you have taken the first step it gets easier.

In hindsight maybe a house would have been better, but i still hold the 2 bed unit and have no regrets.

Now i am married with two kids and now have an additional 3 properties. I would not worry too much about where as long as its in surburban Melbourne. Remember the two somersoft rules. Well the rules i live buy and have been confirmed on this site many times.

1. Its time in the market thats important.
2. Only buy when and what you can afford.

 

[The Y-man]

At the risk of creating more paralysis, your price range lets you get a house in Lilydale (there is a station there - H'ville does not - so you may get a wider rental coverage)...

Cheers,

The Y-man

 

[Submarine]

From the lot I'd say Berwick, although I am a bit bias as I live there. I wouldnt mind buying an IP there but since you already own one there, maybe you want to diversify.

Rental in Berwick is good. train station. And a lot of education facilities. Monash, TEC, the new selective entry school next to Monash, Haileybury, and a lot of others around. This means lots of students, lots of families, and will ensure demand for that area. I think if you buy near Monash you wont go wrong.

In terms of GF growth, it probably is going to be slow and steady. Reason I say this is there is still quite a bit of land around that has not been built up. However, having said that the prop we bought in 2007 recently revalued increase by 60k.

My opinions only.

 

[Neophyte]

Frankston By-pass

When the freeway by-pass is built around frankston I would expect a nice bump for properties to the south (mornington and somerville). Being able to skip Frankston (saving 15+ minutes?) puts them within easier commuting distance of a lot of places.

 

[DavidMc]

The reality is nobody really knows what will perform better.

Have you checked the history of previous growth?

I'd setup real estate alerts for all and get the first suitable one that comes up.

 

[Propagate]

Thanks for the replies.

The more I think about it, the more I like Somerville. I had forgotten about the bypass, that could do nice things for the place.

I do like Berwick, a lot, but have been put off by the amount of places available to rent at the moment, plus as said above, lots of land around still to keep prices relatively low.

I still like Mornington, but we wouldn't get as much for our money, as similar to Berwick, there are a lot of available rentals at the moment.

Lillydale - great call, looks very interesting. Will do a bit more research on that one. Might have a run out this weekend.

I really like Healesville, love the area and we could get a great place for the money. There are NO rentals available at the moment, which could be a good thing but really the other places make more sense overall.

Somerville only has a few available rentals at the moment, so could mean that supply is low - or nobody wants to live there?

I'll chase the bank this morning, see how we are going with our finance than look a bit more into Lillydale and Somerville, but I think Somerville is ticking more boxes at the moment.

Cheers all.

Tony.

 

[battler]

I really like Healesville, love the area and we could get a great place for the money. There are NO rentals available at the moment, which could be a good thing but really the other places make more sense overall.

I think you will find that there are no rentals in healesville because of the quantity of houses burnt in bushfires in surrounding areas.

This may well change.

 

[The Y-man]

I think you will find that there are no rentals in healesville because of the quantity of houses burnt in bushfires in surrounding areas.

This may well change.

Or could it be there is no demand? I am trying to think of a demographic that would rent there.....

Cheers,

The Y-man

 

[Leikela]

Or could it be there is no demand? I am trying to think of a demographic that would rent there.....

I think the fires is probably the main reason for no rentals. It was even difficult to get a caravan around those fire affected areas, because the fire victims were using a lot of them, so I can imagine they would be renting a lot of the local houses too.

Believe it or not Y-man, not everyone wants to live in/near the city.

I grew up in Lilydale and I know a lot of people who would never leave those outer suburbs to move closer in if you paid them (I am not one of them!!!). Having said that, I myself wouldn't buy an investment property there, it's too far out and would have less demand, but I certainly wouldn't say there's no/little demand for any rentals.

 

[battler]

I am trying to think of a demographic that would rent there.....

People that work in the area, a lot of people work on farms and the timber industry and don't want to travel from the city. There is a lot of touristy type work as well.

 

[funkysouth]

Somerville

There are pro's and con's with all suburbs but as someone who resides in Somerville and practices Real Estate in Frankston and surrounds, I believe in the growth potential of Somerville.
It is an expansive area with everything available without leaving town. Coles have just built a supermarket here along with Target and you know these juggernauts of Australian Consumer Confidence wouldn't build here without doing their due dilligence.
The railway gives you access to Melbourne in 75 minutes (discounting the wait at Frankston) while buses service Somerville, ,Tyabb and Hastings to Frankston.
There are great schools, both private and public within reach, great sporting facilities, public swimming pool and all only 15 minutes from pristine Port Phillip Bay beaches or Hastings marina and waterfront.
For years there has been talk about expanding the port of Hastings to divert much of the Melbourne shipping away from the Port of melbourne as Westernport has the depth and capacity for growth, as well as the railroad which has the potential for duplication and electrification. This isn't an 'if' but a 'when'. The westernport highway duplication is well underway and as you know, the Peninsula Bypass is due to start soon allowing you to get on at Eramosa Road West, 2 minutes away.
The growth potential in my opinion is great, and having the Mornington Peninsula at your doorstep is just another pro for investing in Somerville.

 

[oneuppmanship]

From strictly a nice place to live, all of these would be good IMO.

I do like Somerville though; has that country town feel which I like.

Mornington's great if you can live near Main St, but the rest is ...

 

[inthegroove]

Somerville is a nice area - I used to live there myself. It has really grown now with the new plaza and facilities, and will IMHO continue to with the new Peninsula link coming in.

Few places in your budget that are available at the moment:

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=97398079&s=vic&tm=1256615672

Very nice place, looks emac!

http://www.realestate.com.au/cgi-bi...=&cc=AUSTRALIA&c=97398079&s=vic&tm=1256615672

nice also!

If you have any questions about the area, don't hesitate to ask!

Goodluck

 

[Peter Parker]

The railway gives you access to Melbourne in 75 minutes (discounting the wait at Frankston)

Let's just say that this is being optimistic and actual journey times are nearer to 90 minutes. Discounting the wait is like quoting prices 'ex GST', ie meaningless for the consumer.

If you need to be in the city by 9am you have a choice of two trains from Somerville; one leaves at 5:58am and the other at 6:39am. At the other end of the day, the last time you can leave the city and still get a train home is shortly after 5pm.

http://www.connexmelbourne.com.au/index.php

Somerville might be OK for someone who works locally though.

There are great schools, both private and public within reach, great sporting facilities, public swimming pool and all only 15 minutes from pristine Port Phillip Bay beaches or Hastings marina and waterfront.

True of almost anywhere in the area, even Frankston North, which compared to Somerville has much better transport access and proximity to the CBD.

For years there has been talk about expanding the port of Hastings to divert much of the Melbourne shipping away from the Port of melbourne as Westernport has the depth and capacity for growth, as well as the railroad which has the potential for duplication and electrification. This isn't an 'if' but a 'when'.

Agreed it's been talked about for years, but until you see the bulldozers, basing location choices on something that 'may' be built is rather speculative.

The growth potential in my opinion is great, and having the Mornington Peninsula at your doorstep is just another pro for investing in Somerville.

Asserting that a place is 'near' somewhere is sometimes used to boost a place that's doesn't stand on its own two feet. The question arising then is if the Mornington Peninsula is such an attraction, why not buy right there, eg Rosebud West which is relatively cheap.

Of the areas suggested, my pick would be a handy part of Berwick, especially old Berwick, if it is still affordable.