Melbourne - Carnegie

I'm attemping to cut down my shortlist of potential Melbourne suburbs.

I know very little about Carnegie, other than it's had solid long term growth.
My question is: Is this suburb considered part of the Melbourne oversupply of apartments?
It's a middle ring suburb - 11.8km from CBD
Any other thoughts on the suburb for investment?

Thanks again.
 
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I know Carnegie well, as was living next to it for years. It is agreat suburb to live in - very close to everything ( main roads, HUGE Chadstone shopping centre, train station) good council infrastructure ( parks, schools, swimming pool, velorom etc etc. Carnegie shopping strip is booming now and becoming a foodie's destination for the number of great Korean, Chinese and Thai restaurants. It is Zone 1 train station and the trains on our line are now running every 10min, so very easy to get to the city. Plus it has a tram line from the city.

In terms of investment properties, there are lots and lots of older units and apartments in Carnegie, and they are very popular because still reasonably priced comparing with other more expensive suburbs nearby. Also the council zoning laws changed this year and there are zones now where development of 3-4 storey apartment buildings is allowed, so lots of developers snapping up blocks and I can see lots of new apartments being build. I still think they will be popular for renters as there are lots o students from Monash uni living in the area.

If I were buying in Carnegie now I would definitely tried to avoid the streets close to the railway and Dandenong Rd as this is where the highest density will be happenning and you will have lots of competition. Check the council zoning map for Glen Eira council.

Any questions please ask :)
 
Thanks. Very useful info.

I would be looking at an older style apartment if I choose the suburb. Do you think all the new developments will be a negative for investing in the older apartment?
 
Hi

Hi Onion,

Why are you looking at apartments?
Having a older apartment like any other investment has both pros and cons.

Just look out for the following: If you buy an older property the entry price might be good but then you are liable for stamp duty. If you buy a new apartment the entry cost might be higher but no or minimum stamp duty.

As for the area you are looking at. I would say a very strong area for rentals and future growth :)
 
The only reason for looking at older apartments is because there are less in the block. I don't want a huge block.

But yes, would definitely consider new as it would help with the cash flow for sure.

Least I know it's a good suburb now. Just got to compare it to the rest on my list
 
The only reason for looking at older apartments is because there are less in the block. I don't want a huge block.

But yes, would definitely consider new as it would help with the cash flow for sure.

Least I know it's a good suburb now. Just got to compare it to the rest on my list

Older apartments in carnegie won't make a huge difference, location is paramount like any other suburb. Carnegie is still seeing reasonable demand for new apartments with its proximity to chaddy and monash caufield as well as the train station with the urine stench at the underpass.

Personally I would not invest there, better opportunities a couple of kilometers down at oakleigh and hughesdale.

Cheers, Ivan
 
That train station underpass will be gone soon! Thanks god the government finally approved the funding for the level crossings to be removed at Carnegie and next train station so the morning traffic should improve a lot.

I agree the Hughsdale and Oakleigh are great for investment too and probably will see more capital growth for apartments/units - but not so sure about rental, Carnegie will be still more popular as there are better transport links and better council infrastructure.

Also theer is a problem with high schools - there is one state school near Carnegie but nothing further for miles except private /catholic schools ( two state schools in the area were closed and sold to developers in the 90's I think, and it is a huge problem for families now)
 
I'm vested in Carnegie. Streets near the train station should do well once the grade separation is completed. Underground train station right at door step. Why not?

BTW, AUD400k for a 1br unit is considered expensive in Carnegie right?
 
Apologies for bringing up an old thread, I'm looking at purchasing my first investment property with a potential of also moving in myself for a short period of time.

I've taken an interest in apartments Carnegie due to the strip of shops which seems to be booming with restaurants, banks, post office and woolworths etc as well as the train line being relatively close to the CBD (the approval to remove the level crossings is also great).

I went for lunch and a walk around the area over the weekend and really liked the atmosphere there, as previously mentioned in this thread there seems to be a lot of apartments popping up recently and although I've been reading that it is better to buy a 5-10 year old apartment for depreciation benefits I'd be lying if I said the I'm not finding the OTP apartments being built directly opposite the train station attractive!

So as someone very new to the world of property, I'd just like to see what the general feeling/advice is for someone like me interested in an OTP apartment in Carnegie. Do we see any potential for growth in a property/suburb like this or are the benefits mainly for the convenience of living there?

Any feedback would be greatly appreciated, happy to admit that I am a massive newbie! :p
 
You are right, Carnegie has a great feel/atmosphere, big korean and Chinese student population. In fact I was at Kim Chi Grandma for dinner last evening.

Investing in Carnegie for an apartment in my opinion is not advised and I would prefer to invest a few km down the road like hughesdale.

Carnegie has not performed over the last 5 years, significant supply of property and they are selling, however limited to no capital growth over the last five years. Yield wise, try to achieve 4.5% however it may be difficult to achieve.

Carnegia for me is a miss - I have a heap of clients that want to buy there (including older apartments) however it just does not stack up in my opinion.

As I say look at Hughesdale even Oakleigh, same access to public transport with more probability of achieving growth and yield.

Hope that helps

Cheers, Ivan
 
Apologies for bringing up an old thread, I'm looking at purchasing my first investment property with a potential of also moving in myself for a short period of time.

I've taken an interest in apartments Carnegie due to the strip of shops which seems to be booming with restaurants, banks, post office and woolworths etc as well as the train line being relatively close to the CBD (the approval to remove the level crossings is also great).

I went for lunch and a walk around the area over the weekend and really liked the atmosphere there, as previously mentioned in this thread there seems to be a lot of apartments popping up recently and although I've been reading that it is better to buy a 5-10 year old apartment for depreciation benefits I'd be lying if I said the I'm not finding the OTP apartments being built directly opposite the train station attractive!

So as someone very new to the world of property, I'd just like to see what the general feeling/advice is for someone like me interested in an OTP apartment in Carnegie. Do we see any potential for growth in a property/suburb like this or are the benefits mainly for the convenience of living there?

Any feedback would be greatly appreciated, happy to admit that I am a massive newbie! :p

Not an expert, but we had a look around 6-12 mths ago looking at Carnegie as well. It looks like the better/more expensive version of Clayton.

Don't like how there are heaps of apartments happening but so was our next target suburb - Burwood. In the end we settled for Chadstone (bit between Chadstone and Mt Waverley off Waverley Road.) It was mid 700s for a 600m2 block, old 3 bedder, asbestos filled.
 
Unit median prices up 17.3% for 2014 in Carnegie according to Pricefinder. Lots of development happening and plenty of older unit stock available.
 
Land valuation - carnegie, murrumbeena, hugesdale, oakleigh

What would people say is a fair price to pay per sqm in Carnegie, Murrumbeena, Hugesdale or Oakleigh?

Any way to determine what is a fair price?
 
Carnegie is a great area to purchase apartments as it's got the right fundamentals for growth.

I'd suggest if you're considering this area that you look for apartments which align to the following:

  • Are not in a growth residential zone
  • Are established rather than new
  • Are in a quiet street (not too close to rail/main roads)
  • In smaller blocks of good period properties (like 60's units)
  • Don't have any expensive features like pools
  • Are close to shops and transport (1-2km max)
  • Has off-street parking
  • Is elevated (for security)
  • Has a reasonable view
  • Is bright (facing Nth is best)
  • Hasn't got any major issues in the Strata notes
  • Is Strata titled not Stratum/Company Share
  • Has a body corp that looks after the lot properly
  • Has at least 50% of people as owner occupiers
  • All bedrooms bigger than 3x3
  • Has a seperate toilet
  • Has an X-factor (View, size, location, floor plan, character, etc)
 
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