Melbourne $400 - $500k

[capitalist]

I've been asked by a friend to buy something for her in Melbourne for $400k to $500k max.
My friend is working overseas at the moment, and wants something that can be rented out in the meantime before she comes back to live in it.

I'm after a house, preferably period style that is rentable but can be improved/renovated in the future.
Can anyone suggest an area that would show good cap gains within 5km of the CBD?
The property would be a long term buy (5-10) years, possibly longer, so anything with a history of good growth is preferable.
I'd love to get something for her bayside, but prices in this range are very popular at the moment in areas like St Kilda, Albert Park and Elwood.
North Melbourne, Carlton, Fitzroy and Kensington would also be considered but i don't think the growth would be as strong there?
What do people think about South Melbourne, Prahran, Richmond, and Collingwood?

If you had $500k to spend on a house, where would you buy?

Thanks,
Mark

 

[peelsman]

what "period style" does she like - victorian, edwardian/federation, cal bungs, clinker brick, pre war BV, post war BV's
personally, i like the clinker brick in sandringham, elwoods red hot and that sort of money will buy little if you are talking a land. As you know anything near the beach is sort after and those clinkers/BV's in sandy offer some good land size and have all the amenties near them...beach, shops, train and can have some nice "period" features. Just be sure to buy as close to the beach as possible. was at an auction in brighton that was a classic buy - a timber 50's shi$box, rentable and a small block but with the possibilty of views in the future, from memory it was about that sort of money
how long before we get excited about laminex in the kitchen do you reckon..
HT

 

[suejones]

Have a look at Williamstown. 4 - 500k would be under the median I'm guessing but you would get something pretty decent and its bayside (with great views of the city)
Regs
Sue