Melton Vic.

[Bandita]

Hi,
I bought a 3 bedroom small house there in central location, off Coburns Road.
The manager from LJ Hooker says can rent out at 250-260 pw. lots of demand now.

Hi Georges, congrats on your purchase!

Not to dampen your enthusiasm, but looking at RE.com, of the 46 3-bed properties in Melton advertised for rent, only 4 are at or above $250 per week. Your PM may be talking the rental price up to grab your business - 40 properties are listed under $230 per week, 30 of those under $200 per week.

Ask around to a couple other PM's before you make your decision - a long vacancy period will not be worth the extra $10-$20 per week a PM promises you.

Cheers,
Jen

 

[Georges]

its ok, i dont mind if can rent out between 210 - 260. I wanna keep this melton one cos i think it will have capital growth. PLus the rental is good compared to purchase price. Not many places you can get such a good deal anymore.

 

[kristy77]

Hi guys, been reading the past 102 posts!!!
I've been interested in Melton for over 6 months now. We have finally paid off our bad debts and are now in the process of saving for our first IP. We're hoping to buy in Melton and have been eyeing off a few places there for around the $160,000 mark.
If you guys were in my position would you get out a P.Loan and buy a property there now, or just continue saving and buy a place there in about 5 months (when we would have enough saved)???
I'm just worried we're going to miss our chance there - over the past 6 months of watching prices in Melton I've seen them rise quite considerably.

 

[Peter 14.7]

Hi guys, been reading the past 102 posts!!!
I've been interested in Melton for over 6 months now. We have finally paid off our bad debts and are now in the process of saving for our first IP. We're hoping to buy in Melton and have been eyeing off a few places there for around the $160,000 mark.
If you guys were in my position would you get out a P.Loan and buy a property there now, or just continue saving and buy a place there in about 5 months (when we would have enough saved)???
I'm just worried we're going to miss our chance there - over the past 6 months of watching prices in Melton I've seen them rise quite considerably.

Having 2IP recently bought in Melton and managed the purchase of 2 others prices are rising fast.

So the quesiton is:

1. are you better buying now and paying LMI of say $4k on $230k
2. waiting 5 months and paying say $10k more but having the deposit.

If you dont have equity to draw upon and 20% of the loan is cash then option 1 is best. Deductable debt is good debt.

Peter

PS do I think Melton willrise that much in 5 months? Consider this. I bought a 4 bed for $227k and 2 months later another 4 bed sold next door for $247k. Both rent for $240 a week. Even if I was $5k under market and the other was $5k over market that is still $10k gain in 8 weeks.

 

[kristy77]

Thankyou

 

[tiger]

Having 2IP recently bought in Melton and managed the purchase of 2 others prices are rising fast.

So the quesiton is:

1. are you better buying now and paying LMI of say $4k on $230k
2. waiting 5 months and paying say $10k more but having the deposit.

If you dont have equity to draw upon and 20% of the loan is cash then option 1 is best. Deductable debt is good debt.

Peter

PS do I think Melton willrise that much in 5 months? Consider this. I bought a 4 bed for $227k and 2 months later another 4 bed sold next door for $247k. Both rent for $240 a week. Even if I was $5k under market and the other was $5k over market that is still $10k gain in 8 weeks.

.... which makes me feel sick because i want to buy right now whilst prices are low but it will be probably 6 months at the very least.... might not be anything under 200k then

 

[Peter 14.7]

Suburbs like Melton don't stay quiet too long. Look at Frankston's growth.

I was even reluctant to post here until I had finisihed but even then the local agents said they had a guy fly in from WA and buy that day 2IPS with no notice and then fly out because he wanted to buy NOW!

Bernaud Salt KPMG Demographer has also raised Melton as good value.

There is still some real value I think and the general punters have not realised what the Deer Park Bypass will do for demand.

Sure supply is easy in theory in Melton but no many Ivestors buy off the plan houses and owner occupiers have to have the deposit and the time to build. If so where do they rent in the mean time?

Peter

 

[tiger]

Is the general consensus about Melton South is that its to be avoided?
Anyone familiar enough with the area care to comment on the future of Melton South?
If I can get a property for 20k less in the south compared to the west or other part, should I go for it or is it more advantagous to stick to the "good" parts of Melton?

 

[mystery]

tiger,

As mentioned previously in this thread ... I bought an IP in Melton about 20 months ago now. I was thinking about another, but bought elsewhere .... the point is I would have quite happily bought in Melton South, ..... the PM's say they are more difficult to rent, but it depends where you buy in Melton South.

You will find good and not so good areas in Melton, Melton West and Melton South, so between now and when you want to buy try and take a trip to the area and spend a few days driving around getting to know the good streets and locations. We did and it was worth every cent. The agents can provide you with a street map and mark on it all the locations you find suitable.

Buying an IP is a large investment so take your time and research thoroughly ... you would imagine that you will still be able to find places under $200k in 6 months time ... it may be at the very bottom end of the market, but who cares, ... the important thing is to BE in the market and not observing from the outside.

Good luck

Martin

 

[Harris]

Is the general consensus about Melton South is that its to be avoided?

thats exactly when I purchased in Frankston North when it was considered the MAIN area to be avoided - for every reason under the sun, drugs, crime, impoverished look, bogans, fibro houses etc etc.

The yields were excellent for the very reason no one wanted to buy there and I bought 2 prop sitting on about 1600 sqm of land next to each other with 2 set of tenants who have been there for 5 years ! I paid $289,000 for both properties in April last year. They would be worth atleast $470k today without DA and well over $500k with one.

Now in the process of getting DA for 6 x 3 Bed units which at this point would return a very conservative 28% return, however I am planning to keep all and with depreciation they will be almost cash flow neutral from day one.

I dont know about Melton Sth in particular however dont let general noise about an area discount its investment potential.

Good luck

Harris

 

[GordonGekko]

excactly harris! , im happy with my house i bought in fr.north mar06 ... i should have bought another.... anyway ... would this happen to corio also? it looks and smells much like fr.north except the added shell refinery!?

 

[ozi]

excactly harris! , im happy with my house i bought in fr.north mar06 ... i should have bought another.... anyway ... would this happen to corio also? it looks and smells much like fr.north except the added shell refinery!?

There is a Mobil refinery in Altona. Also the Holden Oil Dock on the fringe of Yarraville. It hasn't stopped prices going through the roof in both these areas.

Ozi

 

[timmyboy]

Opened up the real estate section this morning in the west australian and there on pge 33 we have a range of "off the plan" options in victoria.
4 x 2 house and land in melton from $257800.
would it be fair to say if developers are investing then there must be something to the area?

Tim

 

[JIT]

would it be fair to say if developers are investing then there must be something to the area?

Tim

That's what a few pro-Melton people here are suggesting, but I think that's very misguided. In my own neighbourhood in Melbourne, I've seen several developers get it totally wrong.

GSJ

 

[tiger]

Opened up the real estate section this morning in the west australian and there on pge 33 we have a range of "off the plan" options in victoria.
4 x 2 house and land in melton from $257800.
would it be fair to say if developers are investing then there must be something to the area?

Tim

Does it also mean that there will be an over abundance of housing?

 

[mystery]

That's what a few pro-Melton people here are suggesting, but I think that's very misguided. In my own neighbourhood in Melbourne, I've seen several developers get it totally wrong.

GSJ

Surely if you buy at the bottom end of the market you can't get it that wrong? I bought in Melton 20 months ago in a flat market where much land was being released and my IP is performing very well even with all the development going on.

I'm not really "pro" any area, but if my research leads me to a place and the price is right and the future prospects positive then I will buy. Melton was one of those areas. So far things are going to plan.

Tiger .. do your research ... Melton may or may not be right for you, but only you can determine that. IMO the main thing if you are serious about buying an IP is to make a decision. Do not buy because of the opinions of others, ..... this must be your decision.

If in doubt, ... stay out

Martin

 

[timmyboy]

That's what a few pro-Melton people here are suggesting, but I think that's very misguided. In my own neighbourhood in Melbourne, I've seen several developers get it totally wrong.

GSJ

can you elaborate further gsj?
wrong in which way? which area/s?

Tim

 

[Georges]

If you bought in Melton before, what was the price you bought? What is the current price?

 

[mystery]

Georges,

Not sure if your question was for me, but I'll answer anyway.

I bought in Jan 2006 ... settled March 2006 ... paid $160,000 .... easily worth $180,000 plus now according to agent. The property is one street back from the Golf Course and near the High Street shops and school.

Martin

 

[Toni]

We went for a drive to Melton yesterday to see what all the fuss is about.....

Flat, Windy, ugly, land, land and more land. I personally would be a little concerned just going by the history of Cranbourne and even to a much lesser degree, Langwarin, wherein people initially jumped in when there was an abundance of land.

The homes in Melton under 200k were much older, (some similar pockets of these houses are in Cranbourne to) but these pockets have never gone up. People who come into these estates generally want the newer homes and as the development progresses, these to get older naturally with time, making them therefore less desirable.

I think getting in too early could be a huge mistake. People in Cranbourne, to my knowledge, find it difficult to sell their properties, let alone the Northern Suburbs. Cranbourne and Langwarrin are at least close to the beach with significant shopping centres close by and from an appearance point of view are much more attractive suburbs.

I could be wrong, but this is how I see it.