Melbourne outer east where to buy?

http://www.realestate.com.au/property-house-vic-clayton+south-119814379

Went to the auction for this today 40-50 Asian/Chinese we were the only anglo people there.

It got ridiculous, agents thought it would go for 550k.... well someone who looked like a student bought it for 690k :eek: Congrats to him but we thought the house was extremely tacky and not of good orientation/shape along with the block.

I don't see how 690k on a property like that is viable. We checked this one out in Oakleigh too, http://www.realestate.com.au/property-house-vic-oakleigh-119913365. Agent reckons it'll go for 690k and in this current market I'd definitely consider it for that, but have a feeling it'll go closer to 750k possibly more.. it's only 2 bedroom but the block was great, also a fan of the old clinker homes. Do you think it could go as cheap as 690k?

I think the whole problem with the market is buyers offering ridiculous prices it's going to get out of hand really soon if it hasn't already. The homes are quoted at reasonable prices but insane people are overpaying 10-20% of the property's real value. Definitely demotivating if you're trying to seriously buy atm.

Edit: Looked at this also http://www.realestate.com.au/property-house-vic-noble+park-119902021 they believe it will go for 450k+ (we believe closer to 500k). It was actually far nicer than 114 Osborne rd and 2 minutes up the road. The property was far better but did lack the close proximity to Springvale main st, underground station etc. That Osborne one was rather terrible in comparison though. It's definitely viable and good value, but I don't feel comfortable paying over 420k for it, but I would never park half a million in Noble Park! All these suburbs have grown a lot already, we're looking around Berwick now (my old favourite) hoping it may finally grow as the Druitt has, but it's so far out with so much land around it, growth has been stagnate here for 7 years.

I see potential in Berwick and Beaconsfield, but Cranbourne, Clyde, Pakenham etc are all estates. There are identical estates/area's in Epping which is half the distance? But homes in Cranbourne are going up steadily lots of people choosing to move there. Upper Beac is great too but has grown 25% this last year, Narre North has also grown 33% over the last 12 months... wish I bought there.

It's basically a decision to buy in area's that've already grown heaps and hope they magically grow forever without coming down.. or buying outer hoping they will finally catch some growth and not remain stagnant... not sure which is the bigger risk lol.

Checked out this one too in the "golden triangle" personally seemed a step down from the Whitmorr other one, they were asking 480k+. I'd say the estate with Ellendale rd etc was much nicer than the triangle (next to the private hospital) http://www.realestate.com.au/property-house-vic-noble+park-119929581



i think you are WAY off with your predictions, that one in Oakleigh, for 750K i'd buy it today.

Those two in Noble Park - that one on Whitmorr will get high 500s and the Jeffers Street one will get low-mid 500s.

Let's see hey :)
 
Mtr I'm surprised you still think it's time to buy in Melb. Although I agree inner city is better value than outer east. Eg Carlton and North Melbourne is far better value than Carnegie or Chadstone.

All relative though. High vs ridiculously high. Race to the bottom.

On another poster's point, nothing sad for FHO trying to buy now. In all seriousness they deserve what they get. Avoid market during troughs (2012) and try to get in during booms (2015). Wise strategy.


Depends where and what you are buying IMO

I am buying and selling, and my end value is under median of Melb, reduces my risk.

With recent purchase I am in process of organising plans and permits and have long settlement and purchased well below market value. Very difficult for builders to find development sites in current market. It gives me choices and time will tell.

We should revisit this thread in 6 months time, keep going you beautiful thing:)

Mtr
 
How far East do you need to go to be able to buy a small 3 bedroom house with a price tag of $500k -$600k on a decent 600 - 800SQM block? I have not seen any for ages. Maybe I am looking from all wrong places.:(

Hi Tillie,

In that price range, size od land and the areas you are targeting is going to be quiet hard.

The market is hot and I think people are starting to relies that how much value property in Melbourne is vs Sydney know.
 
Depends where and what you are buying IMO

I am buying and selling, and my end value is under median of Melb, reduces my risk.

With recent purchase I am in process of organising plans and permits and have long settlement and purchased well below market value. Very difficult for builders to find development sites in current market. It gives me choices and time will tell.

We should revisit this thread in 6 months time, keep going you beautiful thing:)

Mtr

Which areas are you buying in and organising permits?
 
Interesting...are you subdividing and adding an extra dwelling or buying blocks of land and building on it?

I actually like Traralgon and Morwell.

Funnily enough, about to commence building units there. Been sitting on a block of land there for a few years.
 
I see potential in Berwick and Beaconsfield, but Cranbourne, Clyde, Pakenham etc are all estates. There are identical estates/area's in Epping which is half the distance?

Half the distance to what, where, when? That is a WRONG way to look at it, simple! Do you think 100% of Berwick residents work in the CBD? I can assure you that the percentage of residents would be in the low single digits. Simple!

People live in Berwick because they appreciate the neighourhood and community and have access to resources and amenities, which are top of the class - eg the equal top Selective school in the state operates in Berwick, and guess what, it operates in the yard of a top University.

So when you start adding up the quality of the area with trees, parks, hills, lakes, botanical gardens, followed up by a decent historical shopping strip and pub, followed up by the amenities mentioned, top schools, universities, hospital, 5 mins from the number 2 shopping centre in Australia (fountain gate), access to infrastructure - train stations, freeways, etc, that builds up a fair few points that people take into consideration when looking for a property.....


So once you decide that your points are covered, you go to the area and then the most important thing "the feel" kicks in....do you feel safe walking down the street at night? are you happy for your kids to walk to and from school? etc...

I bet if you did a poll of how many ppl from Berwick woudl happily live in Springvale or Noble Park or Clayton, you'd probably get 5%, but the reverse, you'd probably get 20%.

Upper Beac is great too but has grown 25% this last year, Narre North has also grown 33% over the last 12 months... wish I bought there.

Not many houses in those areas sell, so I'm not sure what sample you are using to say there has been growth of 25% and 33%. I'm always very very cautious when looking at "median" prices. My best way is trying to find houses which have actually sold twice, a year or two ago as well as current sale (or similar houses, same street, size, etc).
 
I am crossing my fingers that is true. My parents are looking to cash out their IP in Ringwood in spring. I am hoping it will be a good time for them to sell.

Ringwood Is going crazy. Your folks will be in for a lovely outcome. Check out the sale on Maidstone St two weeks ago :eek:
 
I am not sure. We still have triggers in place: population growth and cheap money. As the current economy, it's unlikely to raise interest rate in next couple of years. The rental yield is merely 2.5% for house at the moment, I didn't see ppl slow down even a little bit. And compared with the interest rate in 90s, the repayment is still affordable. The projected overall growth for Melbourne this year is 6%. Last 12 month was 9%. IMHO, we are gonna see a stable scaling down, but solid growth in next 2 years, until rate hikes.
 
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