Melton Vic.

[awsydney]

So guys, Melton South or West or North???

I note that the main drag is High street where all the amenities eg bank, post office, shopping and grocery are.

However, I would imagine people who choose to buy / rent Melton south are more willing to drive to the shopping centre over the weekend whilst commute easily by train daily to the city to work.

I'm merely relating what I have heard and read as I have not been there myself. I keep hearing upside though and if prices are around the low $200k's, then compared to Sydney, the only thing is either for it to go up or stay that way for a while.

It's just that I have always experience success with my IPs when they are literally between 100 - 200m of a local train station. I know even when tenants have their own car, they like the luxury of a convenient public transport option.

 

[ozi]

Melton South

If you are going to buy in the Melton area, don't disregard the south just because people are telling you it's a "bad" area. There are good/bad areas in every suburb. If you want my opinion, Melton is just Melton. Always has been and probably always will be. Sure the south is a little cheaper to buy, and rents are also a little cheaper, but overall long term growth and yield figures are probably about the same for Melton, Melton West and Melton South. There are major developments proposed for Melton (including the south), which should slowly improve the area.

This article may interest you:

http://moorabool-leader.whereilive.com.au/news/story/melton-south-where-the-home-bargains-are/

I too was initially part of the "don't buy in Melton South" mob, but when the opportunity arose to purchase 2 properties with about $50k - $70k in-built equity + potentially much more through development, I didn't hesitate. Not bad for a $250k purchase.

There are still bargains to be had if you look.

 

[sash]

I own in Melton South.....I am always find it curious that people will say a particular suburbs is better than another when I see no difference.

I my view Melton South is just as good because it makes up for things in infrastructure like rails, transport, unis, and schools.

As Melton fills up...it could reverse to the point where tha above infrastructure become more valuable.

This is exactly the reason that I buy property like Melton South....it has worked for me!

 

[awsydney]

Melton South

I'm just keeping an open mind about Melton in general and I just wanted to hear from as many parties as possible with their different views. I guess this is the strength of a forum like this to be able to get people with interests in a specific area to debate about the pros and cons.

I want to be able to form a judgment after all this to be able to make a decision.

 

[keneth]

what are the rules on sub division in melton?

I have found a property that is 740m2 in melton west, that i am looking at putting a town house on...

any rules preventing me to do this... its not far from high street.

 

[mystery]

what are the rules on sub division in melton?

I have found a property that is 740m2 in melton west, that i am looking at putting a town house on...

any rules preventing me to do this... its not far from high street.

Keneth,

I have two IP's in Melton and when I enquired about possible sub-division with the council town planner, he basically indicated that they don't have a hard and fast set of rules, but evaluate each application individually.

Martin

 

[Suraj]

Melton is Hot ahain Is it?

Hi guys in the current issue of API Melton has been choosen as a one of the top 100 HOT suburb for property inestment and the median price is 220K. In Sydney suburbs are burning with price rise at this time. But adelaide market looks like cooling down despite low interest rate. I think Brisbane would be the next boom state in comming year.

 

[bricman]

I bought a house in Melton South in July 2008, i was sold on the idea by my mortgage broker at the time. I was brand new to investing and thought it was a good idea.

Knowing what i know now (still novice investor...) i would not of bought in Melton, but in saying that it has never been vacant and has returned between 8-10% growth, depending on whose figures you read. Its definitely a hold and hope property, fingers crossed and all.

For the next IP i will look in Sydney, with a different strategy and outcome hopefully. But in answer to Melton, not bad if you can buy into it cheap and ride the potential wave and get out, thats my feeling.

Ian

 

[Cherry Pro]

Hi Ian

Am a bit confused here ...so you've had capital growth of 8 - 10%, a property that's never been vacant and a rental yield I'm guessing of not less than 5%. So why wouldn't you be happy with your first investment ?

I think you've done pretty well ! You are possibly aware if you had sunk that amount into shares, you'd be in the red (even with the curent upswing).

A 15% return would make me

Good luck with your next one in Sydney !

 

[sash]

I also bought one on Melton South in June 2007 for 155K for a 3brm 1 bth home near the rail station.

Had a look on RE.com and there very little under $210k.....that is a about a$55K gain...not bad after 2.5 years.

Also the rent has gone up from $185 pw to $215 pw...and looking to move it to $225pw soon.

Its all apples at the moment!

PS - I am expecting the median price in Melton Sth to reach $250k plus in the next 2 years...why because the price of land had increased from something like $75k to about $120k...this will also push the existing homes up. So when it reaches $150k per block the median price should be about $250K.

I bought a house in Melton South in July 2008, i was sold on the idea by my mortgage broker at the time. I was brand new to investing and thought it was a good idea.

Knowing what i know now (still novice investor...) i would not of bought in Melton, but in saying that it has never been vacant and has returned between 8-10% growth, depending on whose figures you read. Its definitely a hold and hope property, fingers crossed and all.

For the next IP i will look in Sydney, with a different strategy and outcome hopefully. But in answer to Melton, not bad if you can buy into it cheap and ride the potential wave and get out, thats my feeling.

Ian

 

[kero]

went to a margaret lomas seminar two weeks ago and she is still recommending melton and so is terry ryder's report for top 10 vict hotspots...

M lomas did say melton is a 'buy and hold'.

 

[bricman]

Love this forum, every time a question is put in, there is an almost immediate answer.

sash you got in a the right time, the right price, good timing on your part.

With regards to my IP when you take out the interest payments, management fees, repairs & insurance, its negatively geared or positive when you claim for all the IP expenses at the end of the tax year.

Like i said with the figures i always take the conservative estimate not always believing the hype that surrounds property sometimes, im still holding, hoping and fingers crossed.


Sash may i ask where you got the figure for 250k plus from in two years time? Be nice if it happens...

A 15% return would make me
Cherry Pro when you say 15% return are you taking into account the rental yield also?

As long as these interest rates don't sky rocket in the next couple of years we are possibly in for a good upswing. My concern for Melton as someone else mentioned will be the toolern project - release of land, supply and demand will correct itself, and there will b much less scarcity.

Love hearing peoples view and comments on IP issues

 

[Peter 14.7]

Hello Meton Watchers

FYI I have spent the last 3 days repairing one of my IPs there after we evicted tenant so I am a little down on Melton at the moment

however..

rents have consistently risen and prices doing 10% per annum for near new stuff.

Suprisingly Melton rental supply dropped with massive FHO interest which pushed up prices. Now rents are rising as rates go up and FHO dies. Higher rates equated to better rent it seems.

On the Toolern project consider this thread on the real cost to build.
http://www.somersoft.com/forums/showthread.php?p=605513#post605513

I agree with Lomas, Melton is long term buy and hold.

However I think the cheapies in South were good investments now.

I do fear if rates rise we will see a lot of forced sales so middle next year may be good time to buy?

2 cents Peter

 

[mystery]

I bought a house in Melton South in July 2008, i was sold on the idea by my mortgage broker at the time. I was brand new to investing and thought it was a good idea.

Knowing what i know now (still novice investor...) i would not of bought in Melton, but in saying that it has never been vacant and has returned between 8-10% growth, depending on whose figures you read. Its definitely a hold and hope property, fingers crossed and all.

For the next IP i will look in Sydney, with a different strategy and outcome hopefully. But in answer to Melton, not bad if you can buy into it cheap and ride the potential wave and get out, thats my feeling.

Ian

Bricman, ...... As you are probably aware, property investing is often a long term proposition. You have bought the property, so just forget about it and let it do it's stuff, ... don't make the mistake of micro managing it.

We bought our first IP in Melton in 2005/06 ... for the first couple of years it did absolutely nothing, but we had done thorough DD and had every confidence that the numbers/stats stacked up ..... We now have good growth/equity in both our Melton IP's (second IP in 07).

Be patient, .. trust your research ... and the rewards will come.

Martin

 

[bricman]

Thanks Martin

Its good to hear all the different views and opinions that people have about Melton. Your quite right in saying its a long term investment, although I am always looking at ways of maximizing my investment return.

Melton seems to be up there in a few peoples minds (most notably M Lomas) and property magazine API to name a couple, so there must be something in it (no smoke without fire...) Im in it for the ride that's for sure!

Would like to hear of others who have bought in this area and have added value or done something slightly different in their investing to create a positive outcome. i.e subdivide, dual occupancy, rent by room etc

Best regards

Ian

 

[virgo]

New valuation

Hiya

So, got my valuation back from Westpac on my Melton West 3BR 2 Bath house yesterday. (its on 750sqm tho')

It came in at, wait a minute, 300K!!!! (i bought it at 230K, 2007.)

Cost me vrey little to hold too, per year.

So who is still thumbing their nose up at Melton ???

Cheers

 

[sash]

Yes...the timing was right....

I got a figure of approximately 8% growth per annum on average at Melton South.

I think I could flog my place at $210-220K quickly today...so based on saying it is worth $215K the 8.5% in year one will be up 17K (price in 2010 predicted to be $232K)....and then in year 2 will be up another 8.5% by 19K (price in 2011 predicted to be $251K.

As usual there will be naysayers saying ppfffttt!!!......they said that when Melton was 155K also......

This is not rocket science...just buy and park....and the growth will come. Why because as rents grow....property value grows. Even in Adelaide it is now hard to get stuff for under $200K. Elizabeth is one of the few areas you could do this....

sash you got in a the right time, the right price, good timing on your part.


Sash may i ask where you got the figure for 250k plus from in two years time? Be nice if it happens...


Love hearing peoples view and comments on IP issues

 

[Peter 14.7]

Hiya

So, got my valuation back from Westpac on my Melton West 3BR 2 Bath house yesterday. (its on 750sqm tho')

It came in at, wait a minute, 300K!!!! (i bought it at 230K, 2007.)

Cost me vrey little to hold too, per year.

So who is still thumbing their nose up at Melton ???

Cheers

Great Outcome!!!!! Well done.

and of interest to me as my strategy with melton is upstamp my loan to cover 100% of costs and remove the LOC which paid the 20% plus on costs and move that money on.

FYI I also bought at $230k in 2007 so at $300k it works. 20% is $46k plus $10k in costs makes $56k so total of $286k ish.

What is the rent at? Can I confirm fitout: double lock up garage, ducted heating? ducted air con? I am also 700m2 ish on one and 600m2 on another, all 4 bed.

Lastly, do you know the valuer Westpace used

Peter

 

[Cherry Pro]

Hiya

So, got my valuation back from Westpac on my Melton West 3BR 2 Bath house yesterday. (its on 750sqm tho')

It came in at, wait a minute, 300K!!!! (i bought it at 230K, 2007.)

Cost me vrey little to hold too, per year.

So who is still thumbing their nose up at Melton ???

Cheers

Hi Virgo

That is excellent ! Capital growth of $70 k in 2.5 years is definitely not something I'd thumb my nose up at !

Seems that you have set yourself up for your next purchase. As Peter says, cover costs, have a self sustaining IP, remove LOC and move on to another deal. Great outcome.

 

[virgo]

Melton Valuation

Hiya Peter

Valuation by Westpac was a desktop one. The house is a 3BR plus study; it has a triple garage and ducted airconditioning. Haven't seen it myself tho but according to hubby the condition is average. Location is very good tho for that part of Melton West.

Rental $260. (thinking of increasing it to 270). Not happy with my current
rental manager at Sweeneys. Couldn't make head or tail of the rental statements (and i have an accounting degree!!!) Any recommendation?


Cheers