Melton (VIC) buy or not to buy?

here is the article,

http://www.propertyobserver.com.au/...2-property-hotspots-terry-ryder/2012011153008

'He describes Melton as the most affordable region of the city housing market with good transport connections to central Melbourne and which will be boosted by urban renewal development'

im just trying to get my head around his reasons, surely every house and land package is a renewal development?

mystery said:
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.

Anyway, .. each to their own.

Mystery
Click to expand...

You gotta stop taking it so personally, sure you made 60% on your IP, well done. you may have bought it at a fantastic price, you may have just been lucky, you may have bought the right one in the area,
the fact is that vacancy rates in the area are ridiculously high, and that represents the norm or average even if proportionate sample sizes are taken. Kael is struggling with his IP (sorry to hear) you on the other hand are not, however on average Kael's stiuation may represent the norm in this area, I wouldnt live in any of the suburbs that my IP is in or that I research, but im not trying to build a portfolio on whether I want to live in it or whether it looks good on paper for **** factor!
 
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Property Meister said:
You gotta stop taking it so personally, sure you made 60% on your IP, well done. you may have bought it at a fantastic price, you may have just been lucky, you may have bought the right one in the area,
the fact is that vacancy rates in the area are ridiculously high, and that represents the norm or average even if proportionate sample sizes are taken. Kael is struggling with his IP (sorry to hear) you on the other hand are not, however on average Kael's stiuation may represent the norm in this area, I wouldnt live in any of the suburbs that my IP is in or that I research, but im not trying to build a portfolio on whether I want to live in it or whether it looks good on paper for **** factor!
Click to expand...

I didn't take it personally PM, I was just giving another point of view to the post. I suppose I do defend Melton a bit, but I suppose it's because even though it has it's downside, there is still plenty of upside if people are prepared to look through the negative stuff.

The price I paid for the IP was pretty much the normal asking price back in 2006 ($155k - $160k). It's still a relatively cheap place to invest.

The vacancy rate is high from what I've been told by our PM, but that has occurred before and it's probably similar to when the sales are down ... we have to meet the market.

As far as being lucky, ... well that's for you to decide. I did my DD at the time and took action to purchase based on that research, ... if that's lucky then so be it. I bought existing stock as it was priced below house and land prices and below replacement cost, ... simple!

I'm not looking to argue with anyone .... Just attempting to give a balanced view.

Mystery
 
Melton would not be my ideal place for an IP. There is an over supply of rental properties and not ideal for property growth in the short term if that's what you are after. My strong piece of advice is really look into what area you buy in if you decide to purchase there.
 
Hi All

I have posted many times on Melton but in an old thread.

FYI We have two investments there. Bought 2007 for $230k worth $300k at top but now more like $280k. Sames for rents, went form $230 a week to $285 and no around $270ish.

Melton has suffered from being over loved by Investors and unexpected result of the Gov FHOG. Rentals are in oversupply. Prices for rent are soft. In the long term it will come good but the glory days ar eover.

On the FHOG what I have know from actual buyers is alot of young couples / singles in West Melb bought H&L here, lived 6months to get FHOG and then moved back in with Mum and Dad and have rented out. The idea is they willl move there in a few years time after paying down the mortgage a bit. Good Idea.

SO in time this better class of resident will move in , have babies and turn this ugly duck into a nice area.

My advice, have a very good Agent who gets good tenants, we moved to Damian at Barry Plant. And have very good Insurance like Terri Scheer. We had insurance with a big player and found it did not cover what we expected and they tried to rob us.

FYI, Peter 14.7
 
Not good at all.

Mowbray is the college in the article and at lot of kids here in the Macedon Ragnes go to it as secondary schooling is in short supply and the public school at Kyneton has a bad reputation.

Probably will come back because let face it, what else can you do with school ground and buildings? And a large site in Melton is not worth $$$ as redevelopment option.

Peter 14.7
 
Whilst I support the Baillieu government's decision to not bail out, bailing out a private school with 18 million in debt would be ludicrous, especially when so many state schools are struggling, I would like to see something positive come out of this for the community. A selective school would be brilliant. Perhaps the residents should petition for that instead of for the impossible?

Anyway, as it stands, a definite blow for the area.
 
Can somebody please explain to me, why Melton is on ryders hotspots?

Melton at present has something like 10-15% vacancy,
prices have fallen and continue to fall,
supply for both new and old both is continuing
2700 properties on the market which is a lot

according to this article
http://www.theage.com.au/victoria/housing-glut-hits-suburbs-20120707-21o6k.html
26% increase in stock on market

I just dont see any potential in this area for at least the next 2-4 years until the glut stops? and to be rated a hotspot for all of victoria, has me stumped?
 
being local and not having any intention of selling I think melton will move downward price wise in the short term. over supply and alot of vacant rental properties people are getting desperate to sell. there is an over supply of new build stock which is the problem for older market. if you bargain hard I can see value. soon so keep your eyes peeled. a house close to me 700 sq meter block in very good condition sold for 250k for subdivision ie unit in back yard. new blocks which are small are 150k+ do the math and they don't have the infrastructure the older stock which renters want have.
cheers
 
Anyone knows which real estate agent is able to give a good valuation of Melton house?

I have a house in Melton, want to find out how much it is worth. I asked Barry Plant before and they gave me a very low figure, didn't even care to go in the house!

Who else is good in Melton?
I wanna find out the value to see if i can take out some equity from my loan.
 
rodimus said:
Who else is good in Melton?
I wanna find out the value to see if i can take out some equity from my loan.
Click to expand...

In which case the only opinion that matters is the bank valuer's NOT the agent's. Ask a broker to order an upfront valuation for you if you want to get equity out but need a valuation first.
 
Hey All

I revalued mine via CBA with desktop valuations. That is, they didn't even visit.

BUT.....that was 1.5 years ago in early 2011 and prices have not be happy in Melton at the moment. Suggest get the bank to revue and see what you have. We got $300k value each on two x 4 bed with 2 bathroom and double garage.

Good luck.

On Melton situation, as I said before, the rules of supply and demand is in action here. Just the wrong way!

Melton has been a hot spot since late 2007 and thus we now have Heaps of supply. Yet Demand is weakening and not looking any better with recent drop of jobs in Ford, Alcoa, Qantas x 2 etc.

Melton is a central residential suburbs for these points. 30 minutes to Geelong. Werribee, both Airports and 1hr to CBD but most workers here are trades so it is west Melb where they work.

Carbon Tax and the death of Manufacturing is hurting all West Melbourne and we are seeing the results. Also the boost to FHO in the stimulus brought forward heaps of supply.

Swings and roundabouts.

Regards

Peter Lane
 
The main thing that I think that is holding Melton back from what it potentailly could be is the ease of access to Melbourne CBD.

It took around 20 years to get the Deer Park bypass.

Melton still doesn't have an electric train ( and for 20 years residents were told it was coming like the bypass) and it is only 35km from the city. The trains are always packed - as they have the Ballarat, Ballan & Bacchis Marsh city workers on them too. And they don't run often enough to service the volume of people. The Melton Council are not proactive in lobbying government to get this. - and I don't know why?

The latest major develop there was the building of Tabcorp Park - a huge harness / horse racing centre.

And everytime I drive past Melton the queue of cars on the first exit ramp to the town often quite long - at least 20 cars. The two lanes from Melton to the bypass are always busy in non-peak times - I would hate to travel in peak time.

Sydenham which is approx 20km from Melton and run under a different council has expanded at a greater rate and in less time because they have put in the infrastructure to accompany the development - ie an electric train. I think Epping is another suburb who had the electric train extended to support the expanding development

It may be a cheap place to live. Council rates are excessive for the lack of service and infrastructure they provide. The schools do not have good reputations and there is poor transport. I don't see any indication that this will be fixed in the next 10 years.


It doesn't mean that you can't find a diamond there. I just don't think it will be as shiny as others.
 
CHAOS said:
It may be a cheap place to live. Council rates are excessive for the lack of service and infrastructure they provide.
Click to expand...

It makes sense though. All these new estates have high council rates because they have to build everything from scratch. It's the not the same as established inner areas where infrastructure has been available over a long period. If the residents want "brand new" everything then they need to pay for it
 
I was told by one of the agent that my property is around the $255,000 mark. This is the same price that I was told last year by another agent!

Is Melton's growth really that slow?

I bought it as a house and land package for $200,000 in 2008. The land lot is 300sqm, and a 3 bedroom brick veneer house. Rent is $275 pw.
 
cimbom said:
It makes sense though. All these new estates have high council rates because they have to build everything from scratch. It's the not the same as established inner areas where infrastructure has been available over a long period. If the residents want "brand new" everything then they need to pay for it
Click to expand...


Melton Shire Council have been charging excessive rates for at least 25 years - when the start of these first shiny new estates began. That is how long ago the electric train was promised. Just like the bypass was promised. So what have they done with all the revenue thay have been collecting all this time?
 
JohnA said:
Melton Shire Council have been charging excessive rates for at least 25 years - when the start of these first shiny new estates began. That is how long ago the electric train was promised. Just like the bypass was promised. So what have they done with all the revenue thay have been collecting all this time?
Click to expand...

D-e-s-a-l-i-n-a-t-i-o-n-p-l-a-n-t
 
Melton Money

I grew up in Melton... and when I was researching property used to laugh at the thought of people paying 120K for a 5 unit site... They probably did OK after all. Simple 3 bedroom home that cost 160K abotu 10 yrs back probably close to 260K now.

Melton is the most affordable area to live... it will achieve good long term capital growth --- in terms of % return it will probabyl outpace Toorak.

What's better?

A 250K home that returns 4% pa, or a 750K property that returns 1.5% pa...

I think the answer depends on if you have 250K or 750K or nothng to start with
 
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