Need help re PPOR suburb

[ironpaw]

Hi guys,

We're thinking of moving to a bigger place as our family's growing.

We're currently in the bayside area. Ideally we'd like to stay in the area, but given our limited budget of $680k, its not easy to find a nice 3 bedroom house (and I stress house - as we really need a decent sized yard for the kids). We've found a place in Cheltenham, that, if we can get for around $600k, should be fine after some renovations. advantage - Mentone Girls College school zone, close to Southland...

http://www.realestate.com.au/property-house-vic-cheltenham-106863776

A suburb which seems slightly more affordable is South Oakleigh - the side sandwiched between the golf course, Warrigal rd, centre rd and north rd. Like this one for example:

http://www.realestate.com.au/property-house-vic-oakleigh+south-106806014

The agent reckons it'll go for just under $700k. Its in a really nice part of South Oakleigh - the house is next to a golf course which makes it nice and tranquil.

Question is - which one would be a better buy? which suburb is expected to provide better capital growth? We're not sure whether this will be a 10 year home. 5 years, definately, but depending on where the kids will go to high school, we might need to move again.

Thanks for any input!

 

[mary&mat]

Hmmm, would you have to fence the pool in the Chelt one? See what you mean about needing some renos!

The Oak Sth one, is the backyard big enough for the kids? Nice inside though!

A savvy friend bought in Oakleigh about a year ago & he reckons it's going up steadily. Lots of schools, parks, all the necessary amenties. Near the golf course is a plus in my eyes.

How much would be looking to put towards renos at the Chelt one?

You could have a look at the back of API to see how each suburb has performed growth wise over the last 5 & 10 years. I have a good feeling about Oakleigh. Close to freeway, shops, etc.

 

[ironpaw]

Hmmm, would you have to fence the pool in the Chelt one? See what you mean about needing some renos!

The Oak Sth one, is the backyard big enough for the kids? Nice inside though!

A savvy friend bought in Oakleigh about a year ago & he reckons it's going up steadily. Lots of schools, parks, all the necessary amenties. Near the golf course is a plus in my eyes.

How much would be looking to put towards renos at the Chelt one?

You could have a look at the back of API to see how each suburb has performed growth wise over the last 5 & 10 years. I have a good feeling about Oakleigh. Close to freeway, shops, etc.

We plan to spend 50-70k on reno IF we get the Cheltenham place for ~600k. Our max budget is $680k all inclusive. And yes, a fence is needed - in fact I plan to board up the pool because I don't trust our kids in not killing themselves!

The backyard in the Oakleigh place is small, but it has a huge front yard which we plan to fence off for the kids.

 

[Ms Jade]

Hmmm....Cheltenham's the better suburb but that is a good location in Oakleigh and the house is better. If it were me, I would pick suburb every time. Cheltenham will always be worth more than Oakleigh IMO and you have a good sized block there with room to extend if necessary. The rooms look to be a good size & there's lots you can do with the house and the floorplan. You should easily be able to do the reno for $50k. I think if you can get into Cheltenham & add value over time you won't be disappointed capital growth wise. I'd rather the worst house in an $800k suburb than the best house in a $600k suburb. Then again, I'm speaking as an investor. As this will be a PPOR it's hard not to buy the house you just want to live in.

 

[forumite]

Hi guys,

We're thinking of moving to a bigger place as our family's growing.

We're currently in the bayside area. Ideally we'd like to stay in the area, but given our limited budget of $680k, its not easy to find a nice 3 bedroom house (and I stress house - as we really need a decent sized yard for the kids). We've found a place in Cheltenham, that, if we can get for around $600k, should be fine after some renovations. advantage - Mentone Girls College school zone, close to Southland...

http://www.realestate.com.au/property-house-vic-cheltenham-106863776

A suburb which seems slightly more affordable is South Oakleigh - the side sandwiched between the golf course, Warrigal rd, centre rd and north rd. Like this one for example:

http://www.realestate.com.au/property-house-vic-oakleigh+south-106806014

The agent reckons it'll go for just under $700k. Its in a really nice part of South Oakleigh - the house is next to a golf course which makes it nice and tranquil.

Question is - which one would be a better buy? which suburb is expected to provide better capital growth? We're not sure whether this will be a 10 year home. 5 years, definately, but depending on where the kids will go to high school, we might need to move again.

Thanks for any input!

Except for the kitchen, the rooms look similiar. Would have preferred the Cheltenhem.

forumite

 

[forumite]

The 3 golf courses in Oakleigh South look a tad small from Google Maps.

 

[ironpaw]

Except for the kitchen, the rooms look similiar. Would have preferred the Cheltenhem.

forumite

I think I'm leaning towards Cheltenham too. After some reno the place will be pretty nice, and if we could get it for a lower price then we'd have a larger home in a area with more CG for a lesser price....

Unfortunately the auction this sat is Cheltenham 1st then Oakleigh South 2nd...lol

Going to visit this home today:

http://www.realestate.com.au/property-house-vic-cheltenham-106912637

Right next to the train line! Is it worth the 650k? Personally I wouldn't be too phased about it but I can see for resell value its gonna suck hardcore!

 

[ironpaw]

Ok, just came back from the open. Had 2 trains go past whilst I was there - surprisingly it wasn't that loud when I was in the house...of course, when I was in the backyard it was very loud.

The vendor wants $650k (claimed to had a "keen" offer of 645k) and keeps pushing that its a bargain. The REA doesn't help either - he's one of those oldschool used car salesman type...even asked "what I wanted to do"!! I told him I don't usually buy houses on a whim...and he retorted by saying you're going to let a bargain slip by.

The house has been on the market since March this year. I highly doubt the place will be snatched up overnight...even if I do make an offer I don't think I'd wanna pay more then 600-620k for it. 710m2 of land, but the house itself is smaller then the other Cheltenham place I was looking at...

 

[Steve Basin]

Both suburbs are fairly good.
Because you mentioned its for PPOR and not for investment purposes, then I think your priority should be for family needs first.
If however, your looking for an investment property, then of course do the maths and look at the capital growth and the rental yields on each suburb.

I would suggest that you make a list with your family, and write down all the the things that are;
a. must have
b. nice to have
c. Not important

Put 2 properties side by side, and go for what's in the best interest for the family. Both suburbs are much of a muchness anyway. However, the amenities, the property itself will be different.

I hope this helps.

Remember whatever you and your family do decide, will be the right choice!

 

[ironpaw]

Thanks for that! I guess I'm just worried that in 5 years time if we have to my I'd be kicking myself for picking the wrong suburb!! Also I'm cautious about overpaying...

 

[CADAN]

Hmmm....Cheltenham's the better suburb but that is a good location in Oakleigh and the house is better. If it were me, I would pick suburb every time. Cheltenham will always be worth more than Oakleigh IMO and you have a good sized block there with room to extend if necessary. The rooms look to be a good size & there's lots you can do with the house and the floorplan. You should easily be able to do the reno for $50k. I think if you can get into Cheltenham & add value over time you won't be disappointed capital growth wise. I'd rather the worst house in an $800k suburb than the best house in a $600k suburb. Then again, I'm speaking as an investor. As this will be a PPOR it's hard not to buy the house you just want to live in.

this is Oakleigh South, prime Oakleigh is worth more than price Cheltenham.

 

[ironpaw]

this is Oakleigh South, prime Oakleigh is worth more than price Cheltenham.

Yep. Oakleigh is priced higher then Cheltenham...but I think Oakleigh South is cheaper, even in the nicer parts...

 

[Ms Jade]

^I'm guessing you mean "prime" Cheltenham. I meant Oakleigh Sth, but to be honest I had no idea that Oakleigh had a higher median than Cheltenham. Just had to look it up. Actually, they are closer than I thought - but I'd still plump for the Cheltenham one.

 

[Peter Parker]

Both are handy, well-serviced suburbs.

I'd agree that Cheltenham and Oakleigh proper are ahead of Oakleigh South.

But when compared to one another it's line ball.

Oakleigh's main advantages are its proximity to the CBD (it's still Zone 1), good transport and proximity to major employment area. It's not far from the geographic centre of Melbourne and has major university campuses just minutes away.

Cheltenham is near fewer jobs and higher education. But (especially west of the railway) has the benefits of bayside living. And its range of secondary schooling is better than Oakleigh due to its proximity to Mentone.

Both are unbeatable suburbs for golf buffs. Both have good trash and treasure sales on Sunday (Oakleigh's is bigger but Cheltenham's is under cover). But for a family with school-age children I'd pick Cheltenham. But if they're uni age, Oakleigh is best.

 

[SouthEast]

Hi ironpaw. Just from the perspective of someone that lives in Cheltenham, you are going to love being close to Southland. You don't realize how handy it is to have a shopping centre at your doorstep until you live next to one. Have lived in Chelt for the past 2 years (I grew up in Glenhuntly but budget didnt stretch that far when purchasing our own place) and really wanted to stay in the area when buying our 2nd PPOR. We have now purchased in Highett and couldn't be happier. There is also a great Medical Centre nearby that is open until 10pm with VERY good GPs.

Amenity wise, Chelt has everything from cafes, to beach to parks and good public transport. I don't think we will ever leave this area.

 

[Indifference]

An out of the box consideration....

If you are priced out of your ideal location, why not considering renting and putting your equity/cash to work on other IPs?

If renting is ruled out by personal preference, I would suggest setting a budget, ranking your area preferences, and buying the best property in the personally highest ranked suburb you can. A key consideration should probably be school catchment areas, unless you are of the private school camp.

Personally, my last PPOR (in Melbourne), I chose further out, better house / home lifestyle, more family friendly. But PPORs are an emotive choice. Normally buying a decent home at or below median for the area gives a good CG outlook. Financially, you would be better off living a little further out, but hey, it is a personal choice though right?

 

[forumite]

But if they're uni age, Oakleigh is best.

I think Parkville will be the best

 

[ironpaw]

Well, we bidded on the Cheltenham house and dropped out @ 610k. Someone else bidded 617k and the place was passed in. The vendor wanted 640k and the higest bidder didn't want to budge...

The REA called us and asked if we could go $630k. We offered $625k and told him the vendor's got till Monday morning to take it or leave it. Considering the vendor wanting a short settlement (they want it all done and dusted by xmas), which I can provide (we can settle in 30 days), I would think they are willing to forgo the 5k...unless they want to go through the whole private sale process again and chance finding someone willing to pay more and settle by christmas...

Perhaps I should give in and pay the extra 5k? In the long run its chump change, but it will bite into our reno budget - that $$$ could be a new 6 burner stove, or a ducted heating/cooling system...

Oh, and that Oakleigh South place went for an insane $749k!!! Maddness! I thought it was totally overpriced...

 

[ironpaw]

We have now purchased in Highett and couldn't be happier. There is also a great Medical Centre nearby that is open until 10pm with VERY good GPs.

Ahh yes I've taken my family there more then a few times

 

[SouthEast]

Good luck! Let us know how you go. : ) we were so close to being able to afford a house in Chelt but budget was just out ($550k) and the only ones around for that price were on main roads or needing extremely extensive renos. I'm happy with our little townhouse though. The next one will be our forever home.