Melbourne South East & Bayside. What to buy? Please help.

S

SouthEast

Hi,

My husband and I are about to purchase our second home. We are planning to live in it for the next 5-10 years and would then like to ultimately keep it as an IP, or if we have to sell it, I want to know that we have made the best decision from an investment POV and picked the one that would grow the most in price.

I am well aware that as we are planning to live in it for a long time, a big factor is whether we want to live in it and the area and whether we want to raise our children there but I would like opinions on which you would think would show the best rental yields in the future and which would grow the most in price.

Here are the 4 properties we are deciding between. All 4 are going to auction but have indicated that they are very much open to offers beforehand. We are planning on making an offer on one of them in the next week:

1. A 3 bdrm/1bthrm/single garage 1960's unit in Glen Huntly. This one is renovated, not an excellent or expensive job but it has polished floorboards and is perfectly livable. Looks like it was renovated to sell.) There are 6 on the land and the body corp is $800-900 p.a. Size is about 11sqrs. Anyone who is familiar with Glen Huntly knows exactly the type of place I am talking about. Asking price is $520k-$570k (being Glen Huntly I don't know how realistic this is.)

2. A 4 year old 3brdm/2bthrm/double garage single level townlhouse in Edithvale. This one is very nicely finished with top quality everything. It has ducted heat and vac, air con, stone benches, the works. The yard is a nice size for a townhouse with a pergola and as a place to live, this is our favourite. It is around 15-16 squares, 3 on the land and no body corp. It is 8 mins walk from beach. Asking price is $480k-$520k (the lady selling it bought it for $560k 3 months ago but is forced to sell due to family circumstances.)

3. A 2 year old 3bdrm+ study/2 bthrm/single garage townhouse in Mordialloc. This one looks like it has very nice finishes inside, stone benches, lots of light and nice fixtures. There are about 20 of them in the complex (this is the only one that is attached on both sides to other townhomes). It is in the new part of Mordialloc, near Parkdale but a bit away from the beach. The body corp is about $900 p.a. and it's about 17-18 squares. The asking price is $550k-$600k.

4. A 3 bdrm/1bthrm/single garage townhouse in Highett. This one is about 12 years old with okay finishes. The kitchen is cheapish as is the bathroom but overall it doesn't look too cheaply built. It is 800m from Southland shopping centre and is about 12-13 squares. The living area is quite small as is the back courtyard. There are 2 on the land with no body corp. The asking price is over $500k.

All are within 1500m to the respective train stations.

My questions, if anyone would be so kind as to help out are:

1. If this was you, which one would you buy? Why?
2. Which one would you def not buy? Why?
3. Please rank them in order of preference.

If there are also any major reasons to buy or not to buy any of them, I would love to know them.

Many thanks in advance.
 
SouthEast said:
My questions, if anyone would be so kind as to help out are:

1. If this was you, which one would you buy? Why?
2. Which one would you def not buy? Why?
3. Please rank them in order of preference.
Click to expand...

Each represent different trade-offs between location, age and size, so I can't say which one is best.

The newish ones will have better depreciation, but this is meaningless if you intend to live in it and is subject to existing tax paid.

All of them are in handy suburbs with many facilities. For a family with school age kids Mordialloc, Highett or Edithvale is probably superior to Glenhuntly, but if they go to uni Glenhuntly would be best.

1500m to a station is nothing to boast about as many wouldn't walk that far. 200 to 800 metres is about the optimum distance to a station as it offers the best balance between tranquilty and access.

I don't know about rents, though I'm guessing that they're about the same across all properties. Glenhuntly isn't as much a car-owning suburb as the others so the single garage there is fine. But the single garage of Mordialloc could put it at a disadvantage, given its less handy location relative to shops, beach and station.

I also don't know about forecasting, but it might make sense to buy the one that appears to be best value today.

From the descriptions, one property stands out as being inferior, and that is Mordialloc.

Compared to Edithvale you're paying more for something in a less convenient location, in a large complex (no scarcity value) and with only one garage. Townhouse dwellers are typically dual income and will likely want two garages.

The circumstances of the vendor for Edithvale could make that relatively attractive, though you'd need to check that they didn't overpay when buying.
 
Hi Spiderman. Many thanks for the quick reply. That is a very good point about the single garage in Mordialloc and I was also worried about how many there are in the complex. The other thing that appeals about Edithvale is the layout and the way it felt homely when we walked in. I'm thinking that this would make it easier to sell and rent out in the future as people tend to gravitate towards such places.

I notice that you are from Chelsea yourself. How do you find the area? How are the amenities? Neighbourhood? Commute to the city? and is it generally a nice, safe place to live?

We are currently in Cheltenham and I grew up in Glen Huntly so I'm ending up further and further from the city which is a bit scary but when we first moved to Cheltenham that felt scary too and now I love it here.
 
Hi rg11,

Carnegie is a great suburb but I'm talking about particular properties that are available now. There is nothing comparable in Carnegie in our price range. We would prefer to keep it under $550k and lower if we can. We would pay a little more but only for a very special property. : )
 
I would have thought 200 metres from a train station, especially one on a line that is at street level, would be a disadvantage as trains must signal their approach to a level crossing and the majority of stations are located at level crossings. I wouldn't want that at 5am every morning and up until after midnight every night.
I only say this because I am 1600m from a station which is a 10 minute walk and I can just hear the train signal the approach and the station is in a cutting.
800 isn't so bad but I would have thought anywhere between 500-1500m would be ideal.
Spiderman said:
1500m to a station is nothing to boast about as many wouldn't walk that far. 200 to 800 metres is about the optimum distance to a station as it offers the best balance between tranquilty and access.
Click to expand...
 
RickF said:
I would have thought 200 metres from a train station, especially one on a line that is at street level, would be a disadvantage as trains must signal their approach to a level crossing and the majority of stations are located at level crossings. I wouldn't want that at 5am every morning and up until after midnight every night.
Click to expand...

True, though position relative to the line can be more important than distance.

Eg if you were 200m from a station but there was just clear air between you and the crossing, that would be more objectionable than if you were the same distance from the station but there were eight houses between your bedroom and the station to deaden the sound.

In other words being on a side street away from the line is preferable to being on a street parallel to the line where your front or rear yard overlooks the line and station, even though the distance from the station might be the same.

Despite the size and fullness of car parks near stations, the majority of train passengers walk to the station rather than drive or catch a bus.

There are people who work further, but transport planners mostly agree that 800 metres is a reasonable maximum that most people will routinely walk to a station.

Agents I've spoken to seem to agree that tenants prefer within 1km to the station, and the station's benefit drops away a lot at 1.5 or 2km distance.

Especially for a rental, convenience beats a little more noise every time, provided the latter is not extreme.
 
SouthEast said:
We are currently in Cheltenham and I grew up in Glen Huntly so I'm ending up further and further from the city which is a bit scary but when we first moved to Cheltenham that felt scary too and now I love it here.
Click to expand...

You have to get rid of that fear as that can distort decisions as to what is best value.

Take a trip or two down to Frankston.

Wander around Frankston South.

That will dispel any remaining fear about further out suburbs.
 
Hi SouthEast

Very difficult to choose just as is.
since this purchase would be a lifestyle choice and you would be living in it for quite some time.
Go with your favourite #2 which automatically will be an attractive rental in future

good luck
k
 
Spiderman said:
You have to get rid of that fear as that can distort decisions as to what is best value.

Take a trip or two down to Frankston.

Wander around Frankston South.

That will dispel any remaining fear about further out suburbs.
Click to expand...

Yes its nice there but if you have to catch that train to the city each day, being out in the sticks can wear thin, so IMHO I'd go for highett which is getting some big dough spent on the new safeway/aldi. Additionally, it neighbours primo bayside suburbs.
 
Frankston would probably be too far for us seeing as how I work in the city and have to commute every day but Edithvale only adds 10 mins to my current journey on the same line.

Highett is our second preference but I'm concerned at it's size. While the rest of the house isn't too bad, the kitchen area is tiny.

We have also definitely crossed Mordialloc off the list. There are simply too many of them there.

We are likely to put an offer on Edithvale and Highett failing that.
 
I live in Aspendale and love it here. My kids are primary school age and can catch the trains to the secondary schools in mentone.

As a kid i lived on the non beachside of nepean hwy in mentone (mentone race course estate).

I love it in Aspendale/Edithvale. I work in the city and I am about 8 mins walk to station and beach. The kids love the school. We even joined the life saving club for a year, but with a holiday home and the kids other weekend activities we lost interest. The dog loves the long walks along the beach. I play tennis on a Tues at the local tennis club attached to the school.

There are excellent express trains now to the city. The shopping strip in Mordialloc is coming of age. The mordy creek is still underdeveloped.

In my view its a very underrated area of Melbourne. There is not much better than walking along the beach on an early sunday morning, sun shining and relatively few people. I keep pinching myself and saying its amazing how few people appreciate the place.

I've worked in the Hawthorn and Kew areas and I am still amazed at the beachside lifestlye that Aspendale has to offer for half the price.

You will love it.
 
Hi all,

Many thanks for all of your opinions. In the end after much consideration we have ended up with...drumroll....

http://www.realestate.com.au/property-villa-vic-highett-106791605

The choices were:

http://www.realestate.com.au/property-unit-vic-edithvale-106387557

Sold for $546k

http://www.realestate.com.au/property-unit-vic-glen+huntly-106763748

Sold for $580k (before auction)

http://www.realestate.com.au/property-townhouse-vic-mordialloc-106777957

Sold for $590k

Just out of interest, which one would you have bought? Why?
 
Edithvale?

This seems to be the best in terms of space, look, price, amenity and proximity to train and beach?

Congratulations :)
 
Hi kenster,

No, we ended up with Highett. It's a very similar layout and size to Edithvale just a bit older (Edithvale is 5yrs old and Highett is 12yrs old) and minus double garage and less courtyard space. But Edithvale is 27k from CBD while Highett is 16k. Train station is same distance from both Highett and Edithvale. Highett has a major shopping centre 700m away.
 
You must log in or register to reply here.

Similar threads

A
Looking to buy....what do you think?
Replies
3
Views
1K
DaveM
DaveM
A
OTP Townhouse in Everton Park QLD
Replies
18
Views
3K
Tony3008
T
C
Brisbane- what to buy
Replies
10
Views
3K
LeoT
L
G
St Kila East IP, growth not that great?
Replies
4
Views
2K
jpcashflow
J
H
Which property to buy please? Urgent suggestions please
Replies
5
Views
2K
MsAli
MsAli
Back
Top