Melton (VIC) buy or not to buy?
- Thread starter jayshi
- Start date
Sounds like you could have almost bought two positively geared IP's in Melton if your DSR permitted? Sounds like a pretty damn good start to me.
Both my sisters and i each built one house there in 2006, identical houses 4bdr, double garage etc. Cost $300k, i sold mine oct 2011 for $330k, one sister sold hers earlier for $310k, and the other sister sold Nov 2011 $319k. They were all rented for between $270 to $290pw. So all up we all had a bad experience.
The 3 of us are from sydney, so unsure if we got rorted by the builder in the beginning so made our profit negligible.
Th
Sounds like that is a distinct possiblity. It would want to have been a pretty good house in 2006 for $300K in Melton.
In Oct 2006 I bought an old 3 bd 1bth for $142k and sold it Dec 2010 for $237.5K in Melton South.
Also i bought a 30+square 4 Bed,2 bath, 3 toilet + study double storey 6 yr old double garage on 580M2 in Oct 2007 in Darlingsford area for $242K.
Got any pics/details of the house(s)?
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I'm interested by this... Where abouts in Melton did you build? Did you do a House and Land Package or did you buy the land first and then contract a builder afterwards?
This is the link to my house that i sold for $330k in oct 2011.
http://www.homehound.com.au/3+wetherby+place+melton+west+vic+3337/18510173/
The other 2 houses were similar with a different front facade and a street around the corner, Carlyon avenue.
It was a house and land package. Anyone with local knowledge could inform me (although its too late for me as i have now put that stage of my life behind me), whether this package was worth $300K in 2006 or how much should it have cost me had i not been niave and from another state?
Hi Kael,
See my response above which also covers your questions.........
Awaiting feedback, just out of curiousity now though, as ive now moved on from this chapter of my IP life.
Looking at the house I don't think it was necessarily a builder rip off, although they were charging like wounded bulls around that time and that was probably part of your problem. I think it was just the wrong play in Melton at the time. I did look at one similiar to yours but 5 yrs old in Melton West in 2006 and would have got it for about $230K on a mortgagee sale, although fittings in kitchen etc not as nice.
The bottom end was yielding very well in 2006 (well walk up 7% was easy to find)and the value in the range you were playing in was buying something recently built like the 2007 example i listed earlier for well below what it would have cost to build at that time as building costs were high around that time frame.
The reason i bought that one was because i couldn't have bought land and put up the same type of house for under about $325k by my calcs at the time and at the price i offered with rent in the high $200's and good depn it was pretty well neutral from day dot. It was a left field one that the agent suggested and i made a low ball offer on, when i was looking for another 3bd 1bth in Melton South on a visit and he hadn't found anything i wanted so he changed tact. They took it two weeks later as they couldn't get finance on their new house under contract unless they had one on the existing house.
All IMHO of course. I would be interested in Peter147's opinion as he has stuff in Melton too.
We bought a couple of older style 3 bed 1 bath brick veneer houses in 2006 at central Melton, ..... paid $155k and $160k...... sold one last year (2011) for $258,000 after a repaint and cleanup/reno that cost $5,000. It sold within 2 weeks of being listed. The other is a corner block which we can sub-divide, so we kept that one.
I would always prefer to buy existing stock than new house and land. My only criteria for building new is when its a sub-division or dual occupancy. Nothing wrong with IP's in Melton ... it just depends on what you buy and whereabouts.
Mystery
My opinion which by no means is expert......
I don't think suburbs like Williamstown or Yarraville can be compared to places like Melton or Werribee.
Although Williamstown and Yarraville were once considered dodgy and rough, they have many period homes with character which are highly sought after now.
This is something that will never be replicated and has never existed in the other 2 suburbs as they have mostly newer normal brick veneer houses.
In time i don't know what will happen to these areas but i'm sure there will be some growth, I can't imagine they will be in as high demand like Williamstown etc.
I always keep in mind that good people live everywhere, just because the suburb may have a reputation doesn't mean that only those with jail tatts and no teeth live there!
I don't think suburbs like Williamstown or Yarraville can be compared to places like Melton or Werribee.
Although Williamstown and Yarraville were once considered dodgy and rough, they have many period homes with character which are highly sought after now.
This is something that will never be replicated and has never existed in the other 2 suburbs as they have mostly newer normal brick veneer houses.
In time i don't know what will happen to these areas but i'm sure there will be some growth, I can't imagine they will be in as high demand like Williamstown etc.
I always keep in mind that good people live everywhere, just because the suburb may have a reputation doesn't mean that only those with jail tatts and no teeth live there!
everything just seemed stacked against us, unless youre local or live in melbourne, it all got difficult. Every question i asked after a few years of owning it, such as why is mine $40k cheaper to sell than one 3 streets away, i was told its a different pockket thats why. But i agree, used house is where money can be made.
There was a recent article by one of the gurus (sorry just had a mental blank on who it is, ) that said Melton was the suburb to watch in 2012, I still don't get the motivation for that,
Ok, vacancies are at an short term high, and its just started, prices have fallen, howevere I say that it could still fall, it's not as if land has run out or will be running out,
I personally would still have it on my list of worst suburbs in Vic to invest in metro vic
Ok, vacancies are at an short term high, and its just started, prices have fallen, howevere I say that it could still fall, it's not as if land has run out or will be running out,
I personally would still have it on my list of worst suburbs in Vic to invest in metro vic
Well, we have a member with an IP in Melton.
http://somersoft.com/forums/showthread.php?p=905422#post905422
The Y-man
http://somersoft.com/forums/showthread.php?p=905422#post905422
The Y-man
yeah, saw that one, thats why I am a little stumped on why its recommended as the number one suburb to watch in 2012
Maybe people are trying to sell H&L Packages over there!
Oh I don't know, .... I had two IP's in Melton (Central). I sold one last year ..... quite happy with the return of approx 60% after selling costs.
I'm holding onto the other one as it has sub-division potential. I know of another couple of SS investors that are also very happy with there Melton IP's. I admit the area is not everyone's idea of a great place to live, but I'm also not sure I'd describe it as worst suburb either.
The suburb is good for entry level investment ... I wouldn't buy a new house and land as I believe that the existing older stock is better value with good opportunities to value add through development and reno's.
I've been hearing others trot out the line that "it's not as though there is a shortage of land" for many years, but the property price continues to increase, ... probably because it is always in the top 2 to 3 suburbs that has the highest population growth in Australia.
The Deer Park bypass has greatly reduced travel time to the CBD and the Melton Council and State Govt seem to be very proactive in trying to attract development and employment to the area .... couple that with high migration into the area.
Anyway, .. each to their own.
Mystery
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Two members at least. I bought a 4+2 townhouse just off the High Street two years ago and have no regrets. At the time, though, my agent said that they were refusing to take on any more 3+1 new estate houses as they had too many already. 172 currently to let according to Domain. Mine (I hope) will always let quickly because of location, but I don't expect to be testing this in the near future.
I thought my thread would pop up here, so thought I'd weigh in on the discussion
Although my property is still vacant at the time of this post, I don't regret purchasing there. Since purchasing my land and building there, the value has gone up $30k.
Yes, I'm struggling to rent it at the moment, but I would simply put that down to a lazy/over-worked PM (which if you read my thread, I'm trying to address).
So in short, I don't regret my purchase there ^^
