Tend to agree with Sash .. Melton has possibly grown but not more than 8% last year ...but rents have been steadily climbing.
I too am one happy Melton camper !
I too am one happy Melton camper !
Melton Vic.
- Thread starter WBG Redcliffe
- Start date
maybe ten bucks
Hi, guys, I bought IP (townhouse) in melton west along Station Road in Dec 2007. It costs me about 240K. The IP will be completed this August. Any suggestion if the IP is worth investing as we want to give up now. This will make me lost 10% desposit.
Hi H
A few questions to be pondered here :
1. What kind of rental returns will you get once the townhouse is completed
2. As you are based in Singapore, can you avail of negative gearing in Oz
3. What will it cost you weekly to hold the property after taking into consideration all costs
4. Given that you will lose $24k if you ditch this now, if you went ahead
how long could that $24k help you to hold the property, given the low interest rate regime at present
5. And in the final analysis, you need to have thought through if investing in Melton long term (think 5+ years) will provide you with capital growth.
Good luck !
A few questions to be pondered here :
1. What kind of rental returns will you get once the townhouse is completed
2. As you are based in Singapore, can you avail of negative gearing in Oz
3. What will it cost you weekly to hold the property after taking into consideration all costs
4. Given that you will lose $24k if you ditch this now, if you went ahead
how long could that $24k help you to hold the property, given the low interest rate regime at present
5. And in the final analysis, you need to have thought through if investing in Melton long term (think 5+ years) will provide you with capital growth.
Good luck !
Werribee and western suburbs
Id love to buy in Melton but already paying too much land tax in Vic..
Melton has a lot going for it. the infrastructure with freeways and the like and new shopping centres going up is good. it was featured ina recent API magazine. its a "satellite city"
there is a small section which is "ex Office of HOusing" which has a stigma but newer and most parts are idea.
As for Yarraville, cant go past it. brilliant transport to city, airport, close to beach, which are all easier to access from Western suburbs than Eastern suburbs. wonderful cafes in main street, loads of heritage appeal, also featured along with Footscray in a recent API. i had a PPOR Yarraville Victorian home which doubled in value in 3 years. I sold it for a huge profit and bought next suburb West Footscray. which has almost quadrupled in value since buying in 88.
And no tolls in Western suburbs (yet)
Id love to buy in Melton but already paying too much land tax in Vic..
Melton has a lot going for it. the infrastructure with freeways and the like and new shopping centres going up is good. it was featured ina recent API magazine. its a "satellite city"
there is a small section which is "ex Office of HOusing" which has a stigma but newer and most parts are idea.
As for Yarraville, cant go past it. brilliant transport to city, airport, close to beach, which are all easier to access from Western suburbs than Eastern suburbs. wonderful cafes in main street, loads of heritage appeal, also featured along with Footscray in a recent API. i had a PPOR Yarraville Victorian home which doubled in value in 3 years. I sold it for a huge profit and bought next suburb West Footscray. which has almost quadrupled in value since buying in 88.
And no tolls in Western suburbs (yet)
Werribee
also a spread out town, with "good and bad" areas. But excellent low vacancy rates. and if you head towards the water,.. they are building a marina there. We all know what happens towards property near the water.!
And only twenty mins drive to CBD or by great train service. All shops, hospitals and services in Werribee. Werribee itself is practically joined to Melb. its not out of the way.
also a spread out town, with "good and bad" areas. But excellent low vacancy rates. and if you head towards the water,.. they are building a marina there. We all know what happens towards property near the water.!
And only twenty mins drive to CBD or by great train service. All shops, hospitals and services in Werribee. Werribee itself is practically joined to Melb. its not out of the way.
Thanks, Cheery. Your analysis is valuable. I am planning to leave the house overthere 10 years. About rental return, I have to ask an agency to deal the rent. I expect I can get some return after 10 years.
A bonus factor often unnoticed, Peter
Hey renomegahn,
You've provided soem good points, however these points seem to be hunches, or possibilities and moreso based from an owner-occupant's views.
In relation to investing, you'd need to look at more figures and data.
Even if these negative things are happening or will happen, you cannot refuse the fact that Melton's population figures, rental figures and sale prices are in favour of property investors. If the popluation were in a decline or producing an over supply of rental vacancies constantly then I would assume that the negative points you've raised may be a contributor, but as it stands now, these don't seem to be affecting the overall scheme of things. I'll be buying my second IP in Melton in the next few weeks.
There are a few possible positive/neutral gearings out there - even on a 100% bank loan. You can't avoid that.
Rick
You've provided soem good points, however these points seem to be hunches, or possibilities and moreso based from an owner-occupant's views.
In relation to investing, you'd need to look at more figures and data.
Even if these negative things are happening or will happen, you cannot refuse the fact that Melton's population figures, rental figures and sale prices are in favour of property investors. If the popluation were in a decline or producing an over supply of rental vacancies constantly then I would assume that the negative points you've raised may be a contributor, but as it stands now, these don't seem to be affecting the overall scheme of things. I'll be buying my second IP in Melton in the next few weeks.
There are a few possible positive/neutral gearings out there - even on a 100% bank loan. You can't avoid that.
Rick
Talking to our PM a few weeks ago, ... she advised us to re-sign new lease without going for a rent increase as first home buyers are taking advantage of the grant and buying into the market, ..... this has slowed the rental market in the area. As I said, ... this is according to my PM ... I don't live in the area, but own 2 x IP's in Melton.
On the plus side though the low end of the Melton market has certainly been boosted. Basic 3 bed, 1 bath seem to getting listed around the $220,000 plus mark whereas late last year the new listing were coming onto the market at around the $195,000 - $200,000.
Now that the Deer Park Bypass is open for business, has anyone living in Melton used it, .... has it saved the travel time the govt predicted?
On the plus side though the low end of the Melton market has certainly been boosted. Basic 3 bed, 1 bath seem to getting listed around the $220,000 plus mark whereas late last year the new listing were coming onto the market at around the $195,000 - $200,000.
Now that the Deer Park Bypass is open for business, has anyone living in Melton used it, .... has it saved the travel time the govt predicted?
Hi All
I agree rents have stopped rising like before but both my tenants are in no positon to buy a home so I increased the rents inline with modest but gradual rise. Iam not a slum loand as I didnt rise that much previously so I am catching up.
I didnt know the road was open. I may try it out tomorrow.
OK, most know I like MELTON so being far on prices I took the time to see what my three bed is worth?
It is large three bed in Kurrunjang, double garage, large block 700m2, ducted ac and heating, new area, timber blinds etc.. I paid $230k in Sept 2007. % years old, great depreciations. I could live it easily except I would need more furniture as it is very large 3 bed.
It is 18 months later and all I can find it this:
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007629767
Same location, three bed , etc... but yet to be built. Asking $267,759. so my IP has gone up e$38k almost. Ok that 16% in 18 months so 11% per annum. Not bad
Except in the fine print ( as these always is) I read "26,000 FHOG has been deducted from price". Ok that means the rise is $64,000 in 18 months or 28% or 16% per annum.
So how much does it cost to own? Aorund $5k in the first year but then rates went south. Presently it ismaking me $100 per annum or around $20 a week. Damm that postive cashflow, tax to be paid. I expect to lock later this year at 5.5% to 6% for any years as I can.
Summary: All good!
Peter
I agree rents have stopped rising like before but both my tenants are in no positon to buy a home so I increased the rents inline with modest but gradual rise. Iam not a slum loand as I didnt rise that much previously so I am catching up.
I didnt know the road was open. I may try it out tomorrow.
OK, most know I like MELTON so being far on prices I took the time to see what my three bed is worth?
It is large three bed in Kurrunjang, double garage, large block 700m2, ducted ac and heating, new area, timber blinds etc.. I paid $230k in Sept 2007. % years old, great depreciations. I could live it easily except I would need more furniture as it is very large 3 bed.
It is 18 months later and all I can find it this:
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007629767
Same location, three bed , etc... but yet to be built. Asking $267,759. so my IP has gone up e$38k almost. Ok that 16% in 18 months so 11% per annum. Not bad
Except in the fine print ( as these always is) I read "26,000 FHOG has been deducted from price". Ok that means the rise is $64,000 in 18 months or 28% or 16% per annum.
So how much does it cost to own? Aorund $5k in the first year but then rates went south. Presently it ismaking me $100 per annum or around $20 a week. Damm that postive cashflow, tax to be paid. I expect to lock later this year at 5.5% to 6% for any years as I can.
Summary: All good!
Peter
I will acknowledge with the FHOG now is the best time to analyse. When FHOG grants drops I would expect price to dropAlso being 5 years old it may be worth less however there are no existing stockk for sale which is a statment in itself!
My point was not to gloat but to point out Melton was good value a year back and remains so. Undervalued ugley ducking making good!
Peter
My point was not to gloat but to point out Melton was good value a year back and remains so. Undervalued ugley ducking making good!
Peter
I remember reading that the official opening was April 5th, so it's been open a few weeks now.
Like you we have similar views on Melton and its prospects. We also figured that our properties have shown growth of around 10%-15% since the first homebuyers grant was increased late 2008.
We're not sure what will happen after June when the grant reverts back to lower level, but Melton is still a very affordable option for people looking to enter the real estate market, so you would imagine the price will be supported, but probably in a flatter market.
Martin
(we bought in Melton 2006 & 2008)
Melton
Hiya
Bought in Melton West 2007 and so far, had 1 tenant in who has stayed
with me. Set and forget, cash flow positive now... more important, it has
not impeded me on my investing journey and i feel confident to buy another
IP which will be in the next 9 months...slow and steady has always been my motto...
My IP is 750 sqm land and i reckon land price alone is minimum 100K? Replacement value alone is more than the 200K plus asking price for the houses at the moment, so it is a no-brainer for me...
There is a write up in API this month of Property Secrets guy buying in Melton...go read..
Cheers
jenn
Hiya
Bought in Melton West 2007 and so far, had 1 tenant in who has stayed
with me. Set and forget, cash flow positive now... more important, it has
not impeded me on my investing journey and i feel confident to buy another
IP which will be in the next 9 months...slow and steady has always been my motto...
My IP is 750 sqm land and i reckon land price alone is minimum 100K? Replacement value alone is more than the 200K plus asking price for the houses at the moment, so it is a no-brainer for me...
There is a write up in API this month of Property Secrets guy buying in Melton...go read..
Cheers
jenn
Huaiheanbean, did you buy this through Reapfield?
The price is not bad for a townhouse.
Any chance of getting SGD loan? Ask Patrick Tan [talk to Peter Tng, he's someone to absolutely trust]
Also, make sure BEFORE you close, that Peter gets the depreciation schedule for you.
The agents should have given you the pro forma of this investment. Look at it again. Rents have gone up. You seem very uncertain so I'll walk you through the SGD process.
I've no idea what the xchange rate is now but it should have settled with the AUD going down. SGD was really strong at one point. Last year, my niece got Aud @below a dollar. Anything below 1.10 is good for you. I bought the bulk of Aud @ 1.04 and continued buying all the way to 88 cents.
This post is too long. Send me an email if you wish to talk with me. I'll be going to Spore next month or so.
KY
The price is not bad for a townhouse.
Any chance of getting SGD loan? Ask Patrick Tan [talk to Peter Tng, he's someone to absolutely trust]
Also, make sure BEFORE you close, that Peter gets the depreciation schedule for you.
The agents should have given you the pro forma of this investment. Look at it again. Rents have gone up. You seem very uncertain so I'll walk you through the SGD process.
I've no idea what the xchange rate is now but it should have settled with the AUD going down. SGD was really strong at one point. Last year, my niece got Aud @below a dollar. Anything below 1.10 is good for you. I bought the bulk of Aud @ 1.04 and continued buying all the way to 88 cents.
This post is too long. Send me an email if you wish to talk with me. I'll be going to Spore next month or so.
KY
Jenn,...... I've scanned the April and May copies of API ..... what page in mag?
Thanks
Martin
Melton
Hi Martin
Apologies, not in API but either in Your Investment Property or Your Mortgage magazine (the latest copies) ; must have read it in a hurry when i was in Borders!
Also, KY, can you elaborate on getting a loan in Singapore dollars? i am very interested as the Singapore interest rate is so so low.
cheers
jenn
Hi Martin
Apologies, not in API but either in Your Investment Property or Your Mortgage magazine (the latest copies) ; must have read it in a hurry when i was in Borders!
Also, KY, can you elaborate on getting a loan in Singapore dollars? i am very interested as the Singapore interest rate is so so low.
cheers
jenn
In an outer area like Melton, would you prefer a 5-yr old or new house?
With new, you get higher rent and full depreciation.
With 5-yr old you still get pretty good depreciation, but purchase price should be cheaper. Especially while new development is still going on and new houses are everywhere.
With new, you get higher rent and full depreciation.
With 5-yr old you still get pretty good depreciation, but purchase price should be cheaper. Especially while new development is still going on and new houses are everywhere.
