Melton Thread ....No 2

[Peter 14.7]

I am looking at buying one bed in Sydney either before 30th June to get 50% stamp duty saving or off the plan for the new 100% stamp duty saving announced from 1st July.

I think Sydney is undervalued at the moment and I have a land tax issue if I buy more in Vic.

On this one I have used a friend who acts as a buyers agent to source me some options.

Regards Peter 14.7

 

[harry_massaon]

Hi

Hi Everyone

i am about to purchase my second investment property in melton north, vic.
could anyone please refer the experienced property manager there.

many thanks in advance...
cheers
harry

 

[Peter 14.7]

Hi Everyone

i am about to purchase my second investment property in melton north, vic.
could anyone please refer the experienced property manager there.

many thanks in advance...
cheers
harry

I recommend Damian Parawa of Barry Plant REA.

He is very good with personal service (no flunkies in between) and hard but fair on tenants which in Melton is what you want.

As background, when he took over at BP a year or so back when I was about to leave but elsewhere was no better. We had two tenants slow in paying and poor response to email from BP. He said, trust me, give me a month to clean it all up.

A year later one is evicted with minimal pain and no costs to me, v.good new tenant in for $15 a week more. Other tenant was also given "tough love" and surprise surprise, found a wad of cash to dump in and now 99% up to date and rent also raised $15 a week. He also helped with our insurance claim. BP pay rent when it arrives and tell him you want the new email statement system coming in 1st July - much better than snail mail.

Details are:

Damian Parawa
Ph 03 9746 6000
M 0401 956 147
Email [email protected]

Now Damian (being a REA) will say “our standard rate is 7.7% inc GST plus one weeks letting fee” but you say I am your friend and said he would match my deal at "5.5% inc GST and one weeks letting" and he will roll over. Others on SS have done the same and we are all friends here aren’t we? I just used this tactic with him to get a new IP in St Albans pmed over to Damian despite the travel.

Hope this helps.

Peter

 

[virgo]

Damian

Hiya

I second what Peter says; Damian is my man on the ground in Melton too...

 

[bricman]

From my own experience Ken Jones at Elders real estate is very good, been my IP for over a year now, does a very good job.

Ian

Elders
(03) 9747 4747 (1)

 

[mystery]

Hiya

I second what Peter says; Damian is my man on the ground in Melton too...

Same here .... We've found him very good.

 

[normailson]

One subject that constantly surfaced in Melton thread no. 1 was the lack of good property management in the area. Jens Gaunt lost me a four figure sum and a or two night of sleep before i moved on.

The other domininant subject was capital growth.

Now that houses in my estate are selling well into the $300Ks and some asking up to $400K, I am trying very hard not to gloat. (In the same way that the naysayers would laugh at Melton investors or the GHC crowd before that).

I said "I'm trying very hard"

 

[urbanprospector]

There is CG just not great.

I bought in middle 2007 for $230k for large three bed and $228k for 4 bed.
At the time both rented for $240.

Three years later the value are about $300k.
Rents are both $280 but could be $300 in the open market. Previous PM let things stagnate.

That is a CG and rent increase of 7% per annum. Not skyrocket stuff but at present rates Meltons pays for themsleves once you count Depreciation benefits. Both homes built new in 2003 and very little maintenance required. In another 3 years they will be + CF.

Having a balanced portfolio is my strategy. So Melton is my low risk IPS. My high risk in is Sydney CBD.

Poor tenants problems are a risk in Melton but new PM fixed that.

FYI Peter

you quote a number as to what its worth . please explain your method or is this what you read in a paper or from a property spruiker

i was on fox biz channel last year asking the experts if the thought the increase in median price was due to the ones at the top selling an less in the bottom end all they could do was giggle and agree ..

 

[Peter 14.7]

you quote a number as to what its worth . please explain your method or is this what you read in a paper or from a property spruiker

i was on fox biz channel last year asking the experts if the thought the increase in median price was due to the ones at the top selling an less in the bottom end all they could do was giggle and agree ..

I only rely on agent opinion given last week is $275k to $300k and recent sales. I hate Spruikers.

Fox is right that Meidan Price is a waste so i ignore that. I could quote heaps of examples where it is worthless. Except in Meltong the bottom is the bottom and very high sales dont happen that much. The lowest in Melton is Melton South. Mine are in Kuranajang. North new suburb.

regards

Peter

 

[el caballo]

One subject that constantly surfaced in Melton thread no. 1 was the lack of good property management in the area. Jens Gaunt lost me a four figure sum and a or two night of sleep before i moved on.

The other domininant subject was capital growth.

Now that houses in my estate are selling well into the $300Ks and some asking up to $400K, I am trying very hard not to gloat. (In the same way that the naysayers would laugh at Melton investors or the GHC crowd before that).

I said "I'm trying very hard"

normailson,

May I ask which estate? I have one in Westlakes - I am hoping there is good growth in that estate.

Cheers.

 

[normailson]

normailson,
May I ask which estate? I have one in Westlakes - I am hoping there is good growth in that estate.
Cheers.

Exactly - Westlakes. In Melton Thread No. 1, I identified it as a potential because it started to create it's own demographic of new blood in the way of younger home buyers with proximitiy to the new shopping centre, cinema, Bunnings, K-mart Auto and exit ramp off Coburns Road. No need to go into the older part.

I am on the mailing list for a couple of agents in Melton and Westlakes Estate houses have sold in the low $300Ks with this one asking just under $400K:
http://www.domain.com.au/Property/For-Sale/House/VIC/Melton-West/?adid=2008392127

I bought in late 2007 for $225K not far from that house and I have a similar orientation with a noticeably bigger block but less "bells and whistles" to the building.

Even if I was able to get mine valued at $320K, that is a more than respectable capital gain of 42% in just over 2.5 years.

I hadn't followed prices for some time in Melton West because I'm in for the long haul and don't really "watch" prices. After the first year or so, I think prices did very little but now my Melton West IP has made up for lost time.

Norm

 

[virgo]

Melton West

Hiya

I bought in 2007 too in Melton West Picolotto Dr; 17 year old home on a largish block (750 sqm i think from memory); bought for 235 K; last valuation in Dec 09 for 300K from Wesucks bank; i thought no way! but hey! i'll take it thank you very much....wish the rental was higher tho! still at a measly 270 per week.

 

[Suraj]

Hi Peter. I think Sydney price has gone so much in last 1-1.5 year and every where houses and units etc. How you think still undervalue. I am in Sydney and thinking to buy one in Brisbane thinking price has not gone up and under value. If Sydney is undervalued I definitely choose Sydney to buy. Whats your opinion? is it really under valued. I saw house selling arround 400K now selling 550K, people are buying more that in advertised price. YOur comment appreciated.

Suraj

 

[Peter 14.7]

Hi Surjav

IMO

If you look at growth in Sydney there are pockets that have not moved since 2003 peak. Yet Melb Metro has moved. Why?

NSW Labour Gov is dragging sydney and nsw down. When this changes action will apply and things will move.

Despite the gov Syd is stil the bus and economic heart of Aus and supply is always tight.

Again, select pockets are best. You cannot apply the above to all of Syd. It really is month by month basis. Hence I use a buyers agent in sydney to help me, me being in Vic.

Peter

 

[Africandaisy]

I am on the mailing list for a couple of agents in Melton and Westlakes Estate houses have sold in the low $300Ks with this one asking just under $400K:

...Even if I was able to get mine valued at $320K, that is a more than respectable capital gain of 42% in just over 2.5 years.

Norm

Hi all

Ive just whiled away a pleasant Sunday reading all 45 !!! pages of the old Melton post. Many of you guys seem to have done well by buying back in 2007 for low $200s. So my question to you now is this....

Is it too late now to invest in Melton???

 

[s050399b]

Not really, now with all the interest up in Melton, there's alot of builders coming to build in Melton. $300k for a new 3bedroom, or a little bit more for 4 bedroom.

There's building in North, South, Upper West, and lower West.

 

[normailson]

Africandaisy,
I would never write-off a whole region. You will still find opportunities to get into the Melton market - you will just need to look much harder and negotiate better.
Looking at domain there are still neat houses around the mid 200Ks. Anything above that and the returns may no longer make sense.
Two years ago, Melton was coming off a low base where purchasing seemed to be a "no brainer".
With all the fundamentals, was the price was really going to fall below 200K? And if it did, and if I could not rent it, would I be too proud to live in Melton and rent my home and never have to work again?
You read Melton Thread 1 so you would know there was a number of detractors ridiculing us so maybe not.
If you were looking to come off the same low base today then you could look to other areas such as certain Geelong suburbs or interstate.
Whenever there is a newspaper article on property where readers are invited to comment, the same people will surface tarring the whole property market with the same brush. They will spend their time bitterly writing about bubbles that do not exist in all markets. Meanwhile, the millionaires are too busy making money to care what they or anyone else thinks.

 

[Peter Parker]

Two years ago, Melton was coming off a low base where purchasing seemed to be a "no brainer".

It's interesting isn't it.

But I do not agree it was a 'no brainer', especially to the inner-city based commentators and buyers advocates.

Think back 2 or 3 years. There was concern over high petrol prices. Plus high consumer debt. And interest rates were climbing. The conventional wisdom was that suburbs like Melton would be the hardest hit as people couldn't keep the payments going.

Six months later interest rates plunged in the wake of the GFC and foreclosures in the US. Again it was thought that Melton borrowers (mostly lowish income families) would be vulnurable.

Melton and similar suburbs held up. There was strong migration, demand for housing, and even at $50k more places like Melton were comparatively affordable. Government policies (eg ill-advised homebuyer grants) also supported prices.

 

[MSB]

Brookfield in Melton

Guys,
Has anyone bought an IP in Brookfield in Melton. There are new estates like Botanica Springs and the location is great. It is closer to the freeway and train. Many new houses are between $310K to $350 (3 to 4 bedroom). Based on my research I think there is will be capital growth and good rental yield if I hold it for 10 years or so. I would appreciate any comments on this area? I think this estate is better than the new estates in South East such as in Cranbourne North or Officer.

I am also a bit nervous on the quality of the tenants I could find in Melton. Again this issue is there in all the outer suburban areas.

MSB

 

[Africandaisy]

Africandaisy,
I would never write-off a whole region. You will still find opportunities to get into the Melton market - you will just need to look much harder and negotiate better.
Looking at domain there are still neat houses around the mid 200Ks. Anything above that and the returns may no longer make sense.
Two years ago, Melton was coming off a low base where purchasing seemed to be a "no brainer".
With all the fundamentals, was the price was really going to fall below 200K? And if it did, and if I could not rent it, would I be too proud to live in Melton and rent my home and never have to work again?
You read Melton Thread 1 so you would know there was a number of detractors ridiculing us so maybe not.
If you were looking to come off the same low base today then you could look to other areas such as certain Geelong suburbs or interstate.
Whenever there is a newspaper article on property where readers are invited to comment, the same people will surface tarring the whole property market with the same brush. They will spend their time bitterly writing about bubbles that do not exist in all markets. Meanwhile, the millionaires are too busy making money to care what they or anyone else thinks.

Thanks so much for this sensible analysis. Melton caught my eye because of the high population growth forecasts, proximity to Melbourne and affordable prices. I will take a closer look at the area.