Melbourne Hot Spots - Outer Melbourne

Hi,

Just became a newbie to this forum - a my first post. :)

I've been doing reading and research and there's alot of interest pointing to the Outer West side of melbourne for investment opportunties - especially surburbs such as .

1. Hopper Crossing (established infrastructure)
2. Tarniet (new and upcoming infrastructure)

People thoughts?
 
Hi Ducsta and welcome, ...... go to the "search" function option at the top of the page and do a search on the area's you are interested in and you will find heaps of threads/posts on the subject. Well worth reading if you want people's views who own on those area's/suburbs.

All the best ....

Mystery
 
I purchased in Tarneit 8 months ago, 540 sqm of land for $140k. Since then land has been in very strong demand, with prices shooting up, you can't buy 500sqm of land for less than $200k now. The real opportunities at the moment are houses that are 2-3 years old. They are selling at up to $100k less than the cost to buy land and build the equivalent house today.
 
Hi mattnz

I just (2 weeks) picked up a IP in Tarniet at 350K (about 3 years old). It's located in the Tarniet Gardens.

After researching the area, personally I think it's a good one.. based on the upcoming infrastructure.

Fingers Crossed!

Ducsta
 
The problem with newly developed areas are that once new houses come onto the market, your 5 year old homes lose value in short term compared to the newer houses. So keep in mind you may need to keep for several years.

I nearly bought in Tarneit 2 years ago - 6 month old standard 3 bedroom house where owner was forced to sell, it was going for $230K and I just missed out on my offer. Rental yields are good etc but it is mortgage belt but that has never worried me because I believe the right cheaper house in the suburbs can give you good returns.

I ended up also looking at Hoppers Crossing and Werribee and bought in Werribee. Tarneit median price is higher than Werribee but the growth has been slightly higher in Werribee.
 
I purchased in Tarneit 8 months ago, 540 sqm of land for $140k. Since then land has been in very strong demand, with prices shooting up, you can't buy 500sqm of land for less than $200k now. The real opportunities at the moment are houses that are 2-3 years old. They are selling at up to $100k less than the cost to buy land and build the equivalent house today.

I'm not sure why holding land in Tarneit is good. Yes, you say you've gained $60k on paper in 8 months, not including holding costs. But you go on to say 2 - 3 year old properties are selling for $100k less than cost. These properties will have also had the increase in value of land. So despite that, they are selling below the cost to buy land and build!

Well the way I see it... if you build house on the land and want to sell it in 2 - 3 years, you will be selling at a loss, regardless of the slight increase in the value of the land. Doesnt sound like a great idea to me.

People out there are willing to pay for a block of land so they can build their OWN idea of what they want. Pre-existing properties are undesirable because the people buying out there dont want someone else's property. Why buy someone else's design, when you can go 50m down the road and build your own.
 
All this new land up west- has it got the - got to build in 2 years clause in it?

many people dealing in the buy and sell land business?
 
I just (2 weeks) picked up a IP in Tarniet at 350K (about 3 years old). It's located in the Tarniet Gardens.

Well done Ducsta! Sounds like a good buy.

If you don't mind me asking how much land was it on?

Also, were there many similarly priced properties was sale? A good friend wants to live in Melb for a few years - looking in similar range.
 
I'm not sure why holding land in Tarneit is good. Yes, you say you've gained $60k on paper in 8 months, not including holding costs. But you go on to say 2 - 3 year old properties are selling for $100k less than cost. These properties will have also had the increase in value of land. So despite that, they are selling below the cost to buy land and build!

Well the way I see it... if you build house on the land and want to sell it in 2 - 3 years, you will be selling at a loss, regardless of the slight increase in the value of the land. Doesnt sound like a great idea to me.

People out there are willing to pay for a block of land so they can build their OWN idea of what they want. Pre-existing properties are undesirable because the people buying out there dont want someone else's property. Why buy someone else's design, when you can go 50m down the road and build your own.


Good point - i would even touch tarneit.

although some families might want to find a place to stay rather than stressing on taking a long time to build. Also depends on the target market which this case would be middle to lower income families or people who work in TAC.
 
Hi,

I have also recently taken a plunge in Tarneit market: IP settles in first week of April. Its in Rose Grange estate: Already tenanted and property is up for rent review in 3 weeks time:

Std 3 bed, 2 bath, 2 car spaces, 2 living areas, 1study: currenrly rented for 300 pw, planning to bump it up to 320...lets see:

Regards
TV
 
Bon,

Tarneit is a suburb where 86% are owner occupiers; so defintely its not a investors hot spot:

maybe truganina is:

Regards
TV
 
Tarneit & Truganina is pretty much the same apples if you know what i mean.

The only good part of Truganina is where it's near the freeway, Arndell Estate, where most of them are owner occupiers. Anything above Sayers rd, i believe are mostly investors.

Public transport there is still seriously very lacking! Not going to improve in another 5-10 years minimum.

Should be speaking to local MP to lobby for more buses!
 
Frankston and Seaford are still on Terry Ryder's Hotspotting list. Margaret Lomas, another property author who regularly appears on SKY news also has these suburbs on her watchlist.

If you look around, you can still find rentable old houses on development sized blocks for around $300,000 in Frankston and Seaford. The sort of situation where you can pull down the old house and replace it with two units. Or if you are really lucky, retain the existing house and build up the back.
 
Frankston - nah - it's been predicted to grow but it's just been talk - there is a certain stigma associated with frankston being a rough neighbourhood.

me being a old boy from peninsula school from mt eliza
 
Good suburbs have higher price entry points. If you only have 300 - 350k to invest what are your options? You can dream of Brighton but will have to settle for frangers. Maybe because the purchasing power of a regular SSer is higher we can discuss what is a better investment Toorak or South Yarra, but the real world is a little different.
 
Back
Top