Melbourne - to late ???
- Thread starter doxa5
- Start date
Possibly not too late for Melbourne
Hi
Just to add my 2 cents. We bought last July (2007) in Laverton, Melbourne. Officially it's 17kms from the city, but it's the last train station in Zone 1. Making that quite attractive to commuters, plus having lived in that area more than 10 years ago, I know its straight on the freeway and up over the Westgate and your straight in the city.
Laverton still has a slightly "rough" image but it's definately up and coming, when I was there I thought it was fine regardless of the slightly bad reputation but it's much better now. Directly on the other side of the highway are the new suburbs, Poink Cook, Seaford just to name a few. Here they are selling new houses for over 300k and 400K.
We bought for $218 000 (bout 10 years old, 3 bed, ensuite, brick house) and rented out straight away (with numerous applications) for $230 a week. I looked there recently to purchase something similar and I couldn't get a look in for older houses less than $250 000.
Possibly worth a look?
Stacey
Hi
Just to add my 2 cents. We bought last July (2007) in Laverton, Melbourne. Officially it's 17kms from the city, but it's the last train station in Zone 1. Making that quite attractive to commuters, plus having lived in that area more than 10 years ago, I know its straight on the freeway and up over the Westgate and your straight in the city.
Laverton still has a slightly "rough" image but it's definately up and coming, when I was there I thought it was fine regardless of the slightly bad reputation but it's much better now. Directly on the other side of the highway are the new suburbs, Poink Cook, Seaford just to name a few. Here they are selling new houses for over 300k and 400K.
We bought for $218 000 (bout 10 years old, 3 bed, ensuite, brick house) and rented out straight away (with numerous applications) for $230 a week. I looked there recently to purchase something similar and I couldn't get a look in for older houses less than $250 000.
Possibly worth a look?
Stacey
Can you share which areas in the inner west?
Are they still worthwhile investigating or have the opportunities passed?
I would be interested in finding out more if possible.
Tim
How close to CBD are you after?
within zone 1 you have areas like
Sunshine, fawkner, maidstone, Footscray / Footscray north (to a degree).
Appartment/unit sales have been very strong in recent times just take a look at a few recent sales (domain.com.au) and see if you can find any in your areas at a good price.
This property sold for 237k in Footscray in december
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006827340
House prices are at a median of about 400 and units about 250. The gap is still closing on that.
In braybrook you can still pick up houses for under 300k
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006797015
sold for 290k in December
and in maidstone
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006827005
There are also houses for decent prices in these areas.
Make sure you do your own research on the areas before you buy as i have only really spent a small amount of time looking around the west for properties in zone 1 that still have a decent price.
With braybrook and maidstone you can still possibly pick up a house at a decent price.
within zone 1 you have areas like
Sunshine, fawkner, maidstone, Footscray / Footscray north (to a degree).
Appartment/unit sales have been very strong in recent times just take a look at a few recent sales (domain.com.au) and see if you can find any in your areas at a good price.
This property sold for 237k in Footscray in december
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006827340
House prices are at a median of about 400 and units about 250. The gap is still closing on that.
In braybrook you can still pick up houses for under 300k
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006797015
sold for 290k in December
and in maidstone
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006827005
There are also houses for decent prices in these areas.
Make sure you do your own research on the areas before you buy as i have only really spent a small amount of time looking around the west for properties in zone 1 that still have a decent price.
With braybrook and maidstone you can still possibly pick up a house at a decent price.
Melbourne has a long way to go! I have a feeling the growth in Brisbane is slowing due to affordability...it is now very hear to find H&L packages below 400K. Melbourne still has plenty of stock between 260-340K.
Have a look at the Western surburbs of Melbourne.
My feeling is that surburbs like Hoppers Crossing, Werribee, and Melton have plenty of growth in them. You can still buy in these areas for 220K or less, if you are prepared to buy on the older commission areas it is still possible to buy under 200K.
I agree that Laverton have had strong price rises....this means that both Werribee and Hoppers Crossing now present good value...they are only 5-10klms away and are also close to Point Cook.
I have been talking to a few estate agents and land agents and land that can be built on now is now scarce. Technically there is a lot of land but the developers are releasing land off the plan. This means that the developers are drip feeding suppy so prices of land is consistently going up by 20K per annum.
For instance last year you could buy land in Tarneit for about 95-100k (430 sqm - 500sqm block). Today that same block sells for 115K-135K. Go figure....plenty of land for miles yet prices keep climbing.
Have a look at the Western surburbs of Melbourne.
My feeling is that surburbs like Hoppers Crossing, Werribee, and Melton have plenty of growth in them. You can still buy in these areas for 220K or less, if you are prepared to buy on the older commission areas it is still possible to buy under 200K.
I agree that Laverton have had strong price rises....this means that both Werribee and Hoppers Crossing now present good value...they are only 5-10klms away and are also close to Point Cook.
I have been talking to a few estate agents and land agents and land that can be built on now is now scarce. Technically there is a lot of land but the developers are releasing land off the plan. This means that the developers are drip feeding suppy so prices of land is consistently going up by 20K per annum.
For instance last year you could buy land in Tarneit for about 95-100k (430 sqm - 500sqm block). Today that same block sells for 115K-135K. Go figure....plenty of land for miles yet prices keep climbing.
Hi all,
It's an interesting point of view you pose, it's sort of like saying is it too late to invest because there is never going to be any capital growth anywhere, when clearly there is and has been since records have been kept.
If you are looking for somewhere which is going to double in price in the next twelve mnths then yes you may have missed that boat but there will be another one sooner or later, it's just a matter of timing. For me that's one of the attractions of property investment because even if you buy something which turns out to be a bit of a dog, if you can afford to wait, it will improve. Rarely is property the total loss that some of my forays into the share market have been.
Of course if you buy poorly you bear the cost of potential lost gains elsewhere where your money may have been better invested - but there is always a risk where ever you invest.
My view is that real estate will never be as cheap as it is today and if you continue to put off buying waiting to catch the next boom you will still be having this sort of conversation in 10 or 20 years time only it will be something like " I could have bought that property back in 2008 for only 500k look at the prices now, I'll never be able to buy one now. I'd be sitting pretty if I'd acted back then"
You can't go back to 1988 and buy at yesterday's prices and in 2028 you won't be able to go back to 2008 and buy at those prices. The only time you will be able to buy at 2008 prices is now!!!
Happy Investing
Tom
It's an interesting point of view you pose, it's sort of like saying is it too late to invest because there is never going to be any capital growth anywhere, when clearly there is and has been since records have been kept.
If you are looking for somewhere which is going to double in price in the next twelve mnths then yes you may have missed that boat but there will be another one sooner or later, it's just a matter of timing. For me that's one of the attractions of property investment because even if you buy something which turns out to be a bit of a dog, if you can afford to wait, it will improve. Rarely is property the total loss that some of my forays into the share market have been.
Of course if you buy poorly you bear the cost of potential lost gains elsewhere where your money may have been better invested - but there is always a risk where ever you invest.
My view is that real estate will never be as cheap as it is today and if you continue to put off buying waiting to catch the next boom you will still be having this sort of conversation in 10 or 20 years time only it will be something like " I could have bought that property back in 2008 for only 500k look at the prices now, I'll never be able to buy one now. I'd be sitting pretty if I'd acted back then"
You can't go back to 1988 and buy at yesterday's prices and in 2028 you won't be able to go back to 2008 and buy at those prices. The only time you will be able to buy at 2008 prices is now!!!
Happy Investing
Tom
A very good article in January edition of Your Investment Property magazine that you may want to read about the prospect of much more growth for Melb over the next couple of years. I found it well researched, very interesting and informative and gave me a different perspective on many current views.
Martin
Tanks for info and advise !!
The Y-man, sorry im not selling. Im still looking for my first IP in Melbourne with hope for capital gain.
Preferably :
- 2 bed, 1 bath, 1 car bay apartament
- no more than 10 km from CBD
- small up to 10 apartaments in complex
Im not interested at all for Dockland type apartaments with huge strata, swiming pool, lifts ......
I know that price gain already close to CBD a lot, and I do not want to buy, if these suberbs reached the peak.
I do not know Melbourne at all, residential market is different to Perth, and I need good advise from you guys, where to buy, what is the best suberb not to sink my money, becouse Im not very young any more.
My ideal price to pay- $400 K +exp
More input will be very much appreciate.
The Y-man, sorry im not selling. Im still looking for my first IP in Melbourne with hope for capital gain.
Preferably :
- 2 bed, 1 bath, 1 car bay apartament
- no more than 10 km from CBD
- small up to 10 apartaments in complex
Im not interested at all for Dockland type apartaments with huge strata, swiming pool, lifts ......
I know that price gain already close to CBD a lot, and I do not want to buy, if these suberbs reached the peak.
I do not know Melbourne at all, residential market is different to Perth, and I need good advise from you guys, where to buy, what is the best suberb not to sink my money, becouse Im not very young any more.
My ideal price to pay- $400 K +exp
More input will be very much appreciate.
Thanks - Doxa
Sorry, what I meant is I am selling my properties this year
Interestingly, I have one that matches your requirements should you be interested...caveat emptor.....
Cheers,
The Y-man
Haven't even got around to starting the process yet....
I will PM you information.
Cheers,
The Y-man
Haven't even got around to starting the process yet....
I will PM you information.
Cheers,
The Y-man
sounds like a scam!!! ;p
Of course. I will get the "Melbourne Price" and add a 500% novice surcharge and another 500% interstate buyers surcharge (where applicable).... only kidding!!
Cheers,
The Y-man
Sorry, what I meant is I am selling my properties this year
Hmmm interesting! Y-man, can i ask why you're selling property this year? Is it to pay down debt or re-invest elsewhere? Are rising interest rates a factor for your decision? Have you got some capital losses you can offset against your capital gains?
I remember reading you have IP's in zone 1... do you think the market is still hot in these areas and will you soon go to auction to take advantage of this? Or sell via private treaty? Sell soon (this financial year)?
Sorry for all the questions but last night i also decided to sell that Brunswick house... there's no harm in taking profits. Please reply via PM if you prefer not to disclose reasons on public forum.
Ah, now this is the question that should have been asked before the "what is the property details" question!
After all, my reply could be "They are crap properties, huge vacancies, have not shown any growth for 10 years, and they are about to fall down!" ...or more relevant to the title of the thread, my reply might be "because while the market may not have peaked yet, I think it is very close, and I am going to take my money and run, so good luck to anyone buying now" .....The truth is closer to a combination of both the reasons you give in your post: I am aiming to lower our overall debt levels (one of my NYR's) AND I believe that capital can be put to more efficient use elsewhere.
Cheers,
The Y-man
And you are happy to pay CGT in order to do this?
Are you doing anything to try and minimise the CGT?
(For the 'buy/hold/never sell' brigade too scared to sell
)How long have you held the property Y-man?
I think holding the course of one full property cycle or thereabouts (7-10 years, depending on the capital growth achieved), is long-term enough for me, after which there is a much stronger case for selling and realising capital gains.
