Melton Vic.
- Thread starter WBG Redcliffe
- Start date
http://www.theage.com.au/news/national/home-prices-soar-50000/2007/10/26/1192941340554.html
Reference to Melton's growth over the last 12 months at the end of the article
On the affordability index, Melton still seems great value, however in today's Domain section of The Age there is an article that outlines the 10 worst performing suburbs in Melbourne for capital growth since the last boom (Sep 2000).
9 out of those 10 are in the west and north west of Melbourne and Melton is listed as the 7th worst performer for CG,... perhaps something to do with a lot of vacant land and thereby discounting any pressure on property values.
Harris
...and another in today's age saying that Melton is in the list of ten suburbs that have appreciated the least in the whole of Melbourne since 2000!!
Perhaps it is - however there is no doubt that the rising values for any locality is a result of demand and competition within buyers and that demand is for the land that eventually appreciates over time.
Querying realestate.com.au, Melton I believe has the highest number of vacant residential lots currently available for sale at 129. Werribee has 77, Craigieburn 37 and Frankston 10.
I looked at buying 1/2 acre land at Thoroughbred Estate in melton around 3 years ago. Those blocks are still available and seem to be selling at similar price points.
Until a point is reached where the land supply situation improves (as in decrease of the available land ready for construction), the glut of very cheaply available land will always create resistance towards any sharp rise in the values.
For a new home owner looking at buying affordable property close to amenities and freeway, it sounds good value at $200k mark. For an investor looking for short - medium term CG, it might be a while before the land is snapped up and competition for existing dwellings takes hold.
For an investor looking at long term CG and good rental return in the meantime, it does not look bad. The numbers wont add up for someone looking at sub-dividing the land in short - medium term for an existing prop in Melton wanting to create extra value within that time frame.
I dont know the area well and there might still be small pockets in very close proximity of shopping centres, transport and schools that might still deliver on scarcity value.
Harris
Disclaimer: I am obviously biased from an objective area assessment perspective with my frankston-coloured-goggles... hence do your own DD.
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Harris that is why i only bought in to Melton about 17 months ago, I want to buy in before the rise, not after.
Holding costs are neglible too, Getting 6.3% on the first one, second one will deliver 5.8% with very good depn.
I think there is value in some parts of Melton, which are the areas i have bought. Last year the bottom end was very cheap IMHO, but has come up about 15%(based solely on me checking out the places on the market - not median prices). This year i bought there again but a different area and different class of house, I think the value now is in established homes approx 5 yrs old, frequently they are selling for less than you could build them for(reflecting the increase in building costs over the last 5 yrs), while still having youth on their side(depn etc) and established gardens etc. I had written off Melton in years past, but decided to take another look 2 yrs ago, it has grown and matured as a town considerably since my previous visits and think it is only going to grow as the population and infrastructure improves.
Hi All
I have been busy of late and unable to keep up however I note a lot of debate which I think is missing a key point in a Melton type market.
Replacement Value
Many at SIG went to the 06 Expo Brekkie and heard the Reno Kings as they give us a some personal time. Again great brekkie meeting Perky
Anyhow they are real "meat and potatoes" type investors, which I like. If it makes sense then it is sensible.
Their rules, amongst others were:
Melton has infrastructure coming in bypass and facilities as quoted here. TICK
You cannot buy land and build for less than what the 3 bed homes are selling or were selling for. TICK
AND Building costs are not going down. I have worked in building all my career and I can say each dream product ( tilt up, hebel, etc..) that comes along and promises savings never delivers. The big cost of building is labour and tradies are not working for nothing anymore. "Johnny Cash" helps but who has that in our game?
So does that means the land is going up in value, by default.
As I posted earlier, developers think that.
And if the new fed Gov drops a few fees and charges in the name of affordable housing then all the more cream for them to lap up.
Melton may have the cheapest homes AND may always be the cheapest but that doesn’t mean they are not going up in value.
AS I said, my two cost me less than a good dinner per week. I think I have made 25K gross profit each in three months. For Rent numbers are going down after a blip as us investors moved in and raised stock. By 08 I will rasing all mine by $10 a week and do it easy. By end of 08 they should be neutral geared.
Melton is a real opportunity. Maybee not the only one but it will do me.
Get in now is my advice spoken with $500k invested not just a “gunnas”.
Peter 14.7
I have been busy of late and unable to keep up however I note a lot of debate which I think is missing a key point in a Melton type market.
Replacement Value
Many at SIG went to the 06 Expo Brekkie and heard the Reno Kings as they give us a some personal time. Again great brekkie meeting Perky
Anyhow they are real "meat and potatoes" type investors, which I like. If it makes sense then it is sensible.
Their rules, amongst others were:
- follow the infrastructure
- buy when under replacement value
- value is in the land
Melton has infrastructure coming in bypass and facilities as quoted here. TICK
You cannot buy land and build for less than what the 3 bed homes are selling or were selling for. TICK
AND Building costs are not going down. I have worked in building all my career and I can say each dream product ( tilt up, hebel, etc..) that comes along and promises savings never delivers. The big cost of building is labour and tradies are not working for nothing anymore. "Johnny Cash" helps but who has that in our game?
So does that means the land is going up in value, by default.
As I posted earlier, developers think that.
And if the new fed Gov drops a few fees and charges in the name of affordable housing then all the more cream for them to lap up.
Melton may have the cheapest homes AND may always be the cheapest but that doesn’t mean they are not going up in value.
AS I said, my two cost me less than a good dinner per week. I think I have made 25K gross profit each in three months. For Rent numbers are going down after a blip as us investors moved in and raised stock. By 08 I will rasing all mine by $10 a week and do it easy. By end of 08 they should be neutral geared.
Melton is a real opportunity. Maybee not the only one but it will do me.
Get in now is my advice spoken with $500k invested not just a “gunnas”.
Peter 14.7
After.
To be technical subject to my accountatns final number crunch each cost me around $20 a week out of pocket. So $1k a year. The secret is being 3 year old they have great depreciation allowances.
Regards, Peter 14.7
Agree the start figure is right for Melton the CBD area but not the town and the figures for 2020 growth are incorrect. That site is very impressive. Worth a look. Thanks for the correction.
Peter
Take a look at the address of this property in Melton, .... geez, I laughed when I saw it.
Enjoy .....
http://www.realestate.com.au/cgi-bi...&header=&c=70581182&cc=au&s=vic&tm=1193906832
Martin
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Congrats, where abouts? If you dont mind me asking
Take a look at the address of this property, .... geez I laughed when I saw it.
Enjoy .....
http://www.realestate.com.au/cgi-bi...&header=&c=70581182&cc=au&s=vic&tm=1193906832
Martin
LOL, I wonder what contents insurance costs?
This is fair dinkum...
Martin:
*I'll bet* this address is in the Thoroughbred Estate?
"Light Fingers" was a small, but gutsy thoroughbred mare that won the 1965 Melbourne Cup..Her sire was: "Le Filou" (pickpocket in French), her dam: "Cuddlesome".
Ironically, two years later, Roy Higgins; (my cousin, the jockey) won another Melbourne Cup (again for Bart Cummings-trained 65 and 67 winners)...and the 1967 winner was named "Red Handed"!
(Red Handed also being by the sire: "Le Filou" and out of the mare: "Red Light".)
The picture is of Roy and Light Fingers after winning the 1965 Melbourne Cup.
Martin:
*I'll bet* this address is in the Thoroughbred Estate?
"Light Fingers" was a small, but gutsy thoroughbred mare that won the 1965 Melbourne Cup..Her sire was: "Le Filou" (pickpocket in French), her dam: "Cuddlesome".
Ironically, two years later, Roy Higgins; (my cousin, the jockey) won another Melbourne Cup (again for Bart Cummings-trained 65 and 67 winners)...and the 1967 winner was named "Red Handed"!
(Red Handed also being by the sire: "Le Filou" and out of the mare: "Red Light".)
The picture is of Roy and Light Fingers after winning the 1965 Melbourne Cup.
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Very interesting .... Martin and OC ...thanks for these
Cheers
Cheers
Melton
I bought in Melton West, for a tad above $200K...should rent in the region of 240......sure there is still lots of land but it is already quite built up around the shops and train station....
at that price it costs me only a dinner out per week, that's a no brainer for me....and so near Melbourne.....
Cheers
jen
I bought in Melton West, for a tad above $200K...should rent in the region of 240......sure there is still lots of land but it is already quite built up around the shops and train station....
at that price it costs me only a dinner out per week, that's a no brainer for me....and so near Melbourne.....
Cheers
jen
*I'll bet* this address is in the Thoroughbred Estate?
"Light Fingers" was a small, but gutsy thoroughbred mare that won the 1965 Melbourne Cup..Her sire was: "Le Filou" (pickpocket in French), her dam: "Cuddlesome".
Yes, you are correct, the name is a horsey reference. Melton Council has named lots of streets by subgroups, and you can tell the area from this. So among the horse streets you'll find Hyperno, Phar Lap, Subzero, Archer, etc. There's been chuckles locally about Light Fingers properties; there's several lots for sale there ATM.
So its a handy way to figure out where something is; the explorer streets (Burke, Wills, Monash etc) are Melton Sth, the bird streets (Plover, Penguin, Corella etc) are more central, near the wave pool, ladies names (Charmaine, Yvonne, etc) West M, mens (Andrew, Francis, Richard) MS, etc. etc.
May be of interest if quickly trying to place exact locations, esp if shortlisting properties...
"Light Fingers" was a small, but gutsy thoroughbred mare that won the 1965 Melbourne Cup..Her sire was: "Le Filou" (pickpocket in French), her dam: "Cuddlesome".
Yes, you are correct, the name is a horsey reference. Melton Council has named lots of streets by subgroups, and you can tell the area from this. So among the horse streets you'll find Hyperno, Phar Lap, Subzero, Archer, etc. There's been chuckles locally about Light Fingers properties; there's several lots for sale there ATM.
So its a handy way to figure out where something is; the explorer streets (Burke, Wills, Monash etc) are Melton Sth, the bird streets (Plover, Penguin, Corella etc) are more central, near the wave pool, ladies names (Charmaine, Yvonne, etc) West M, mens (Andrew, Francis, Richard) MS, etc. etc.
May be of interest if quickly trying to place exact locations, esp if shortlisting properties...
Just signed contract for Melton South House
We are in the process of signing contracts for our 2nd IP. The bug has really bitten us...
Got a 3br brick near schools and shops for $170,000.
RE said it should rent for about $190.
Can anyone tell me How do I work out my yield ??
Here we go again
We are in the process of signing contracts for our 2nd IP. The bug has really bitten us...
Got a 3br brick near schools and shops for $170,000.
RE said it should rent for about $190.
Can anyone tell me How do I work out my yield ??
Here we go again
