Melton Vic.
- Thread starter WBG Redcliffe
- Start date
Just checked some prices in Melton South and it looks like the market entry point is now 170K. I bought a property there for 155K in June 2007.....had some reservations but looks like it is coming good.
I am hearing that agents do not expect property for less than 200K next year. That means a 20% rise...but if the Deer Park bypass completes in 2009...then this may not be off the mark.
Only time will tell....I love these so called ugly ducking surburbs....you do not have to spend a lot, reasonable cashflow and you can continue buying as shortfall is not huge.
I am hearing that agents do not expect property for less than 200K next year. That means a 20% rise...but if the Deer Park bypass completes in 2009...then this may not be off the mark.
Only time will tell....I love these so called ugly ducking surburbs....you do not have to spend a lot, reasonable cashflow and you can continue buying as shortfall is not huge.
I just read an article in THE AGE yesterday or the weekend, and in the top 10 WORST performing suburbs, it had melton at number 7 or 8........... most of the other top 10 s were all quite familiar eg taylors lakes, a few suburbs around it, it had donvale , a bit of a surprise..
but melton shocked me as it is a suburb I am going to look at next.
but melton shocked me as it is a suburb I am going to look at next.
Yep, that's probably expected, .... I bought 2 years ago in a flat period and it is only recently that it has started to gain some upward momentum.
I suppose it also depends on where the data came from, criteria used and what time frame was used in the findings. It doesn't surprise me that it appears on the list, ...... I'm confident that it won't be on the list in 12 - 18 months time though.
Martin
This month's API also shows that in 1997 Melton was ranked the second most affordable suburb in Melbourne.
In 2007, it is now the most affordable suburb in Melbourne (based on June qtr. median).
So it went from being really cheap...to being really, really cheap over the space of 10 years?!
Maybe it's bottomed out?
In 2007, it is now the most affordable suburb in Melbourne (based on June qtr. median).
So it went from being really cheap...to being really, really cheap over the space of 10 years?!
Maybe it's bottomed out?
This month's API also shows that in 1997 Melton was ranked the second most affordable suburb in Melbourne.
In 2007, it is now the most affordable suburb in Melbourne (based on June qtr. median).
So it went from being really cheap...to being really, really cheap over the space of 10 years?!
Maybe it's bottomed out?
LOL ....
... funny post, well done.My really, really cheap IP is going up in value, so I'm really, really happy.
Martin
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I am waiting on a call from a split system aircon installer any day now. The PM set it up, .. he's just calling me to discuss location of installation on our IP.
I can't give recommend as I won't see the work, ... but if you are interested just PM me and I'll send you my property managers contact number.
Martin
I've used Specialised Heating & Cooling (03) 9743 7633 to install ducted heating & cooling, and also to instal a split and have found them to be reliable, and competitive. Most popular local firm for this type of work.
Also a quick update on Melton happenings: 2nd McDonalds just opened, and Harvey Norman store imminent. New commercial area opening on Eastern edge of town. Also large new teenage centre currently under construction.
cheers,
Katlin
Also a quick update on Melton happenings: 2nd McDonalds just opened, and Harvey Norman store imminent. New commercial area opening on Eastern edge of town. Also large new teenage centre currently under construction.
cheers,
Katlin
Note to potential buyers: properties selling VERY quickly at present (esp at lower $$$). I was lucky enough to be in the right place at the right time and snapped up a bargain from a vendor in dire straits, 178K, expect to rent $195 min. Missed several properties to remote buyers, as i booked inspections after work and properties sold during the day... maybe a downside of being local, however i did get to see exactly what i was buying. Still bargains to be had, but nearly all need work. All REA say they're selling predominently to interstate buyers... and i must say i was cursing you all when i kept being pipped at the post.
anyone interested in a good fixer upper - (seriously considered this one but ended up with one that needs minimal touches and much cheaper). We looked at this one (advertised at $199,500 - now listed for auction 1 Dec) - in VERY nice street (Brookfield estate, Melton sth) - worst house in best street - this estate completely built out. All other houses worth ~$250+ (most 2 storey). this one needs painting, new heater, prob oven & hotplates, garden almost nonexistent, no carport or garage. Vendor has started renos, but got dishearted i think, anyway, a bargain for the right person http://www.stockdaleleggo.com.au/searchResultsID.asp?INTERNET_ID=151823&OFFICE_ID=99 BTW i have no personal stake in this property - just an interested observer
Katlin
anyone interested in a good fixer upper - (seriously considered this one but ended up with one that needs minimal touches and much cheaper). We looked at this one (advertised at $199,500 - now listed for auction 1 Dec) - in VERY nice street (Brookfield estate, Melton sth) - worst house in best street - this estate completely built out. All other houses worth ~$250+ (most 2 storey). this one needs painting, new heater, prob oven & hotplates, garden almost nonexistent, no carport or garage. Vendor has started renos, but got dishearted i think, anyway, a bargain for the right person http://www.stockdaleleggo.com.au/searchResultsID.asp?INTERNET_ID=151823&OFFICE_ID=99 BTW i have no personal stake in this property - just an interested observer
Katlin
Hi All
The recent posts to me reinforces Melton has a lot of potential. Over the last 10 years little has changed. It has moved up with the market in general.
When you read the posts on the new developments a lot is changing so that can only add to reality that Melton is a changing suburb.
Rents are going up after plateau so with my rates fixed I am happy with my set and forget investment. This investment costs me very little.
I look at it this way. I don't expect Melton to double in 5 years but it should be a gain of 50% and that means as I have invested $500k of other people money in five years I have made $250k.
Costs are around $3k a year so that’s $15k down so I am still $235k up. Where else could $3k buy you $250k in leverage? Assume I amd wrong it only goes up 25% in five years so only 5% a year. I amd stillmaking groww $125k and costing $15k? Where is the problem with that.
That’s the game plan, don't lose sight of the game plan. When I was younger I over analysed many an IP investment and it cost me money. Not this time.
Peter
Peter
The recent posts to me reinforces Melton has a lot of potential. Over the last 10 years little has changed. It has moved up with the market in general.
When you read the posts on the new developments a lot is changing so that can only add to reality that Melton is a changing suburb.
Rents are going up after plateau so with my rates fixed I am happy with my set and forget investment. This investment costs me very little.
I look at it this way. I don't expect Melton to double in 5 years but it should be a gain of 50% and that means as I have invested $500k of other people money in five years I have made $250k.
Costs are around $3k a year so that’s $15k down so I am still $235k up. Where else could $3k buy you $250k in leverage? Assume I amd wrong it only goes up 25% in five years so only 5% a year. I amd stillmaking groww $125k and costing $15k? Where is the problem with that.
That’s the game plan, don't lose sight of the game plan. When I was younger I over analysed many an IP investment and it cost me money. Not this time.
Peter
Peter
That's a very good way of looking at it.
A lot of people only think of leverage as being the gains relative to the initial deposit when a comparison against the annual holding costs is more accurate especially for (i) buy & hold and (ii) where you depend more on serviceability than LVR to get loans.
We may need to introduce the new terms of 'appreciation/deposit ratio' and 'appreciation/holding cost ratio' (IRR measures the lot but we'll put this aside).
Purchase price = $240k
Deposit = $24k
Holding cost = $3k (assuming a new property with lots of depreciation)
Gain this year = $24k
ADR = +100% in 2007 (ie 24/24)
AHR = +800% in 2007 (ie 24/3)
An older property in the same area might have higher holding costs (maybe $8k pa) but it will have been cheaper to buy and may appreciate a little faster than the newer place in its first few years. But it's AHR could still be over 200% which is quite good.
But if holding costs were sufficiently low to keep AHR over 300% then provided the property grows by CPI (3%) you'll be breaking even. If you only need and expect most years to exceed 3% growth pa then isn't that better than believing the "seven-to-ten-percent crowd"? To me this is low-risk investing, with the only doubts being location and the possible higher costs of buying new.
In contrast an inner-city property that (say) loses $12k pa would need four times the growth of your example to provide an equivalent AHR. We know what the pundits say about inner vs outer growth rates, but if measured over a 15-20 year period then I doubt the growth percentage difference would exceed 4:1.
Peter
Thanks Martin and Katlin I will give SHC a go.
Katlin as a local I'm interested in your thoughts on the Darlingsford area in comparison to the other parts of Melton because i settle this one in a month.
http://www.realestate.com.au/cgi-bi...343535&p=30&s=vic&snf=rbs&t=res&tm=1194653543
Peter, I'm looking at it in the same way. But only have put in approx $400K into Melton total.
Katlin as a local I'm interested in your thoughts on the Darlingsford area in comparison to the other parts of Melton because i settle this one in a month.
http://www.realestate.com.au/cgi-bi...343535&p=30&s=vic&snf=rbs&t=res&tm=1194653543
Peter, I'm looking at it in the same way. But only have put in approx $400K into Melton total.
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McMansions in Melton!
CRC Error ... what an fabulous purchase ! Think you got a great deal.
Well done.
Well done.
Personally, i would rate Darlingsford as one of the premier addresses in Melton. There is restricted access, and when it opened they had their own security (i dont know if this still applies). There is a restored historical barn, and a small lake. The site for a proposed botanical garden is adjacent also. Also, it is bounded by the freeway, the creek, and other streets, so limited housing. Bike path goes past, which takes you to main parkland. Its also very central but much newer than the surrounding streets. Not close to train station, but walking distance High St shops. Yes, its a little McMansion and the blocks aren't naything special but I'd say go for it.
Katlin
Hi everyone
Some interesting into in today's Aust Fin Review (source KPMG) of the fastest growing locations in Australia from 2005 to 2006.
On increase in numbers Gold Coast leads with Melton as number 5 nationally.
On increase by percentage Gold Coast is again on top, but Melton is 3rd highest nationally!
cheers
Michael
Some interesting into in today's Aust Fin Review (source KPMG) of the fastest growing locations in Australia from 2005 to 2006.
On increase in numbers Gold Coast leads with Melton as number 5 nationally.
On increase by percentage Gold Coast is again on top, but Melton is 3rd highest nationally!
cheers
Michael
some interesting news, front page local paper:
REIV figures show Melton township median price rise 10% Sept quarter now $214K (up from $193K) 'Melbournes middle and outer suburbs showed greater increases in value than its inner suburbs' - Enzo Raimondo REIV
However, shire prices remained constant at $273K, with Caroline Springs recording a median price DROP of $7K to $297K... also ranked 10th for highest turnover of houses. IMHO lots of McMansions with overextended mortgages, interest rate rises will surely produce lots of mortgagees sales in this suburb.
Katlin
REIV figures show Melton township median price rise 10% Sept quarter now $214K (up from $193K) 'Melbournes middle and outer suburbs showed greater increases in value than its inner suburbs' - Enzo Raimondo REIV
However, shire prices remained constant at $273K, with Caroline Springs recording a median price DROP of $7K to $297K... also ranked 10th for highest turnover of houses. IMHO lots of McMansions with overextended mortgages, interest rate rises will surely produce lots of mortgagees sales in this suburb.
Katlin
Cheapest house in Melton - $85k
I would be interested to see how much this sells for:
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104451794
Could be a real fire sale bargain!
Ozi
I would be interested to see how much this sells for:
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104451794
Could be a real fire sale bargain!
Ozi
