Is that really the best way to put it?
The Werribee Sewage Farm is a nationally regarded birdwatching site. Real estate agents should use it as a selling point.
Melton (VIC) buy or not to buy?
- Thread starter jayshi
- Start date
Is that really the best way to put it?
The Werribee Sewage Farm is a nationally regarded birdwatching site. Real estate agents should use it as a selling point.
This made me lol
Yes but not everyone wants/thinks or can afford to live where you might.
There are plenty of people who want to live in areas you might turn your nose up at. So the point is the same, if you invest based on that outlook you greatly limit yourself, and you are then expressing a bias based on nothing other than the bias, not investment criteria.
Sometimes economics play a bigger part of the decision than desire, actually i would say it comes first, "what can i afford, then what are my options based on that"..
Emotion will always play a part in PPOR and should. Shouldnt be the driving factor in investing IMHO.
I would like to live in a massive french provincial place on a couple of acres with manicured gradens on church rd in Templestowe but i dont have(just yet anyway) the approx $4M to $6M it would take to buy the place.
Just seeing the underlying factors on each particular suburb. There are many areas to make money just i wouldn't invest in werribee. Just my 2 cents - no offence
Been there once - not really my cup of tea unfortunately. Yeah if the marina gets build things would be different - still other places to make money
just curious - Is that 375K after all expensese, interests, rates etc or is it just capital growth?
Yep. Another one in Carlton, similar RoI but bigger property. Although I must say that nowadays the outlook for the suburb isn't that great with the student population/inflows set to decrease.
Just capital growth.
The 3 properties I mention return about 41k per annum or about 9% return on all of them.
Still plenty of growth in these areas....as they are affordable. Similar distance suburbs (i.e Springvale, Dandenong) which are not as nice in the South East cost 30%-50% more.
The 3 properties I mention return about 41k per annum or about 9% return on all of them.
Still plenty of growth in these areas....as they are affordable. Similar distance suburbs (i.e Springvale, Dandenong) which are not as nice in the South East cost 30%-50% more.
interesting hypothetically - if you sold - with stamp duty etc (not including tax) it could be around 250K-300K in 5 years?
Positively or negatively geared?
Positively or negatively geared?
Just positive without factoring in artificial deductions like Depreciation.
Won't be selling as they still have a lot of growth.
Just checked Weribee and Hoppers X prices....very little under 300k.
I bought the Werribee place for 130k in July 2006. It is within walking distance of the station.....I reckon it is worth about 270k minimum...it is Weatherboard place.
Won't be selling as they still have a lot of growth.
Just checked Weribee and Hoppers X prices....very little under 300k.
I bought the Werribee place for 130k in July 2006. It is within walking distance of the station.....I reckon it is worth about 270k minimum...it is Weatherboard place.
good on you. No comments on werribee.
5 years for assuming the properties are sold today for a gain of 250-300K.
No disrespect - In my opinion that's not a lot of growth for that time period.
5 years for assuming the properties are sold today for a gain of 250-300K.
No disrespect - In my opinion that's not a lot of growth for that time period.
No offence taken.
Considering I only put down something like $45k (including stamps, legals) and hardly paid anything else on top.....I can live with a paper profit of about 370k. That is about a 822% return on equity.
You do realise that is about 12-13% growth per annum on the overall asset value most property grows at about 7%?
I am happy with this sort of return...as it is consistent...no major jumps and then drop which makes banks nervous.
Believe me I should know....had friends in high end homes who were sweating as some of banks were looking to take their LOEs away as they were concerned about how much prices were dropping in these sort of homes during the GFC.
Considering I only put down something like $45k (including stamps, legals) and hardly paid anything else on top.....I can live with a paper profit of about 370k. That is about a 822% return on equity.
You do realise that is about 12-13% growth per annum on the overall asset value most property grows at about 7%?
I am happy with this sort of return...as it is consistent...no major jumps and then drop which makes banks nervous.
Believe me I should know....had friends in high end homes who were sweating as some of banks were looking to take their LOEs away as they were concerned about how much prices were dropping in these sort of homes during the GFC.
Fair call - unfortunately opportunities like these do not exist anymore. yes 10 years ago and 5 years ago. now it's a whole new price tag. Say someone who was in uni or school in 10 years or even 5 years ago would not be able to get on the property train as those who were there earlier.
I don't strongly believe in valuations or estimated values to be honest. Sometimes valuations are not true reflections as a property is only worth as much as a buyer will pay. I have achieved that amount in less than 5 years but in actual sales of the properties. I hope to make close to that same amount again in 1.5 years when i sell my place end of the year.
I don't strongly believe in valuations or estimated values to be honest. Sometimes valuations are not true reflections as a property is only worth as much as a buyer will pay. I have achieved that amount in less than 5 years but in actual sales of the properties. I hope to make close to that same amount again in 1.5 years when i sell my place end of the year.
I beg to differ.....buying now in Wyndham shire for say 250-300k ...would make this asset worth about 400-500k for the asset in 2016.
Why because....in 5 years time...the median wage will be 80k annum from the current 60k.
That also means a family on 1.6 median wages....about 130k could easilty afford a house for 400-500k. Their net wage will be about 100k and assuming 7% interest rates they should comfortably pay repayments of 35k per annum
This is the key to property growth.
I also suspect that areas like Werribee will be sought after 5 years time.
Why because....in 5 years time...the median wage will be 80k annum from the current 60k.
That also means a family on 1.6 median wages....about 130k could easilty afford a house for 400-500k. Their net wage will be about 100k and assuming 7% interest rates they should comfortably pay repayments of 35k per annum
This is the key to property growth.
I also suspect that areas like Werribee will be sought after 5 years time.
Again no disrespect - i have bought in point cook land planning a built house - so i'm not against the wyndham council areas. but buying now for 250K to see it grow to 450K in 2016 - is too long a time. i can get that capital growth (after expenses) in half the time through renovating. As for werribee - my view is there is stigma associated with that area. The smells etc. i know having worked for a water company in melbourne also you might now know it is viewed overseas as a place to avoid. Again everyone to his own.
As to median wage going up - if you ever worked in local gov - good luck in that. That's a highly speculative estimate. Medians do not represent the majority. I would be suprised my salary jumps that much by then. It is highly unlikely. i'm assuming you did not fixed the interest rate so interest rates at 7% - 5 years is a pretty long time - it could be 15% who knows. we're just speculating as the future of world and local economies are unknown
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Your comment, made in jest, is actually the truth, especially for people with a bit of money who can afford dearer homes!
Werribee's poshest area (south of Synnot St) is nearer to the sewage farm than the ex-commission/cheap project homes on the north side.
Similarly its better high school is likewise on the south side (Werribee Secondary vs Galvin Park).
what's that figure 30K, 50K or 100K?
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