Melbourne IP opportunities and what type??

Discussion in 'Where to Buy' started by OneIP&wantsmore, 21st Nov, 2009.

  1. OneIP&wantsmore

    OneIP&wantsmore Member

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    I have one IP in Brisbane but have recently moved to Melbourne and looking at buying another here. What is the thoughts on upcoming suburbs and prices. Would the Capital growth be better on a unit, townhouse or house? Unit I could afford closer to town but I would have to look at houses in the sticks... I've been reading about Frankston and Cheltenham as being reasonable, any advice or suggestions please?
     
  2. toony

    toony Member

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    Both are good for me. But i live and invest in these areas.
     
  3. pickle pickle

    pickle pickle Member

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    I like Fawkner. It's just over 10km from the city and you can get houses there for under 400k. It has had strong growth over the last year (all of Melbourne has), but I think it has more potential.

    Also West Heildberg. I know it's a poor area, housing commission, but look at where it is located. Near a lot of wealthy suburbs like Ivanhoe. Young people from suburbs like Ivanhoe and even Kew, who can't afford these areas but want to be in or near these areas will consider West Heildberg. Someone from work is looking at buying a PPOR there as they want to be in the area but can't afford anything else.
     
  4. Domain

    Domain Member

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    OneIP&wantsmore,
    I would say houses are the way to go if you want CG.
    Land is the key as they don't make land anymore!

    As for areas, as P&P sugguested, Fawkner and west heidelberg are upcoming areas and are great buys.
    Also look at Reservoir which recently recorded 20+% growth and is on its way up.
    Others include Coburg North and Bundoora.
    I'm a massive fan of the Northern Suburbs as it's currently going through a transitional phase.

    If I was a betting man, my top pick would be west heidelberg based on the surrounding 'expensive' suburbs and current median prices.
     
  5. toony

    toony Member

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    West Heidleberg - yeah another murder there over the weekend.
     
  6. DeeHwa

    DeeHwa Banned

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    I was about to say!

    Channel Nine news were interviewing some of the residents on Alamein Road and even they admit it is a rough neighbourhood. There are also a lot of indigenous people that live in West Heidelberg and no offence, but you'd be blind to buy into an area of that demographic.
     
  7. pickle pickle

    pickle pickle Member

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    But areas do change. In 20 years time I wouldn't be surprised if West Heildberg is a well to do area. Just look at the suburbs around it. Surely it can't be a dump forever.

    It's not like you have to live in the IP. Just buy the IP and rent it out.

    There are many suburbs that were not deseriable that have become desirable. I think West Heildberg will become a desirable suburb one day. As I said before, look at the suburbs around it. I can't see it being a dump forever. And if it does become desirable, then watch out for the CG. If it doesn't, then as long as one doesn't pay too much, you should get at least average CG. So can't really see how you can loose from an investment stand point.
     
  8. chrispy

    chrispy Member

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    Pickle

    Who are you going to rent it to and at what return?

    Most Uni students live on campus or in Macleod, Watsonia, etc.

    I have been in the area a long time and I have heard how West Heidelberg is going to be the next big thing. Southern Road has indeed had gentrification but the surrounding streets have not.

    I thought once the generations changed it might lift but the housing commission move more people in, so it continues to be a poor suburb.

    However, low income people need houses and this area is designated for low income housing and I can't see it changing.

    Chris
     
  9. Deltaberry

    Deltaberry Member

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    Sure it might do well in 20 years. If 20 years is the timeframe it takes, I'll look at West Heidelberg 15 years later. In the meantime I'll buy some other areas first that takes less than 10 years to become desirable.

    I've also got some picks that I think will do well in 200 years. Such as Wagga Wagga
     
  10. OneIP&wantsmore

    OneIP&wantsmore Member

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    Thanks for all the suggestions. Not so sure about west heidelberg... I would like quality tenants that are not going to trash my property and hopefully at least look after it. I want something that has good returns but not so much risk. Where are the major hospitals, quality schools, and university campuses?
     
  11. Buzz

    Buzz Member

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    API mag out this week ( subscribers last week) talks about Wyndham being the next big growth area. I have to say though the photo in the mag isnot too attractive. They list areas in the suburb ie river precinct that have good and streets where you need to be aware of housing commission issues.

    I have been using Aust Bureau Stats heat maps to detect areas of home ownership in suburbs for years, especially if housing commission is an issue to you, this is a great tool. I have attached a presentation from the latest property investing course on how to get the heat map up - it is abit tricky for first timers. If housing commission is an issue you may find this useful and if % owner occs is important you will find it even more valuable.

    Hope this helps
    Jane
    PS opps it is too big and under password control on my website so if anyone wants a copy DM and I will send it through - 2Mb