New development Coburg!?

R

roghouse

Hey guys,

I'm currently looking at IP in the range of 300-350. With the research I've did, I figured my best bet is probably Coburg.

There are a number of upgrades that are schedualed for the area in conjunction with the 2030 Melbourne development plan and it has a relatively cheap price for its close proximity to the city.

As of yet, I haven't really taken a good drive around the area, so wanted to know what some of you guys think about the place (I drove past once and it didnt look crash hot (place looks OLD!) But are there any good pockets to be in?)

Also, anyone know how the rental is going around there, I'm thinking of buying a two bed. townhouse/unit, but from demographic data, most people living there are families.... So not sure!!

Another thing, with the new pentridge prison redevelopment, there has been an influx (and continued production) of apartments and houses around the area. Do you guys think that the sudden increase in houses will cause a sig. drop in the rental market!

Rog
 
Bumping this old thread up.

Am also looking to invest in this area, 400-450k price range.

Have similar concerns as the original poster.

If anyone can offer some insight or an opinion, it would be much appreciated.
 
You'll have no trouble finding tenants in the area - high demand.

Zone 1, trains, trams, buses, recent development of a shopping zone in the northern (Gaffney St) edge with Bunnings etc.

Large number of halal suppliers and eateries.

Cheers,

The Y-man
 
Much appreciated- thank-you.

Anyone have any predictions on long-term growth and possible price increase/decrease of this area?

I'm new to this - first property, trying to learn all I can but it's quite complicated for someone (myself) with very little knowledge of the market! This forum is fantastic though, and a few hours of reading on here has proved beneficial.

First property = scary stuff :S
 
One more question - sorry guys!

Can anyone shed some light on their opinions on certain pockets of this suburb ie. which are preferrable and which to steer clear from?

Thanks again.
 
Mel22 said:
One more question - sorry guys!

Can anyone shed some light on their opinions on certain pockets of this suburb ie. which are preferrable and which to steer clear from?

Thanks again.
Click to expand...

The Grove is undoubtedly Coburg's most prestigious street with its big houses, wide nature stripes and tree-lined streets. It is also smack bang between Sydney Road and Nicholson St and not too far from more affluent Brunswick, as I generally view anything past Bell St a tad far and which to best stay clear from. The Avenue is also worth considering as well. Hope that helps.
 
Mel22 said:
One more question - sorry guys!

Can anyone shed some light on their opinions on certain pockets of this suburb ie. which are preferrable and which to steer clear from?

Thanks again.
Click to expand...

I would avoid the Old Pentridge site (mcmansion city) - i.e. north of Bell and East of Sydney rd.

Houses cheaper north of Bell and West of Sydney but further from shops etc (as mentioned by DeeHwa). Neighbourhood ok - mostly elderly. Having said that, the area immediately to the northe of Coburg Station is the planned Grollo development - which may be good or bad....

Western edge on Melville also a bit remote, and tram becomes only travel option.

Cheers,

The Y-man
 
grew up in Coburg know it well, wanted to buy there for a while but sitting and watching ended up getting me priced out of the market :( ended up buying neighbouring suburb.

By far the best area is that bordered by moreland rd, sydney rd, bell st, nicholson st, better known as Coburg East. This area is quite more expensive and better equipped facilities wise than the area up towards gaffney or outwards to melville rd.

The better streets are definitely The Grove and The Avenue (where i grew up :) , but dont rule out the other good st's.. Rennie, Campbell,Huntington,Glenora, Salisbury, Sheffield and parts of Coburg st.

As for prices you will not touch a house for under 500 in this Coburg East area, you may come close if its a unrenovated attached single fronted on a short block.

You will also be hard pressed to find a newish 2bdr unit for that mark, however there are still some older units in The Grove and surrounding streets which are selling in 400-500 brackets.
 
Hi
I can only add that I purchased via a BA who advised at the time to purchase south of Bell Street as this was the better pocket.

I purchased 2 years ago in Darlington Grove, Californian bungalow $500K am told it would now fetch $700K.

I am not too keen on the Pentridge Prison Development as I was looking for something that could not be easily replicated and would provide growth. Unfortunately these types of properties are difficult to hold.

Personally if I were buying now I would look at buying a unit in a small block in good location.



Cheers, MTR
 
Last edited:
Good evening. I am a total newbie to property investing, and am currently researching areas to buy my very first IP.

Was quite interested in the Air Pentridge development in Coburg. Reasons: relatively spacious apartments, low body corporate costs, near public transport and shops, near schools and a creek, and off the main tram route (not noisy - which is a bonus).

I note that several people have been advising against the Pentridge redevelopment. Would greatly appreciate your advice why, and why it would be difficult to hold.

Thanks for your time! :)
 
Mazda said:
Good evening. I am a total newbie to property investing, and am currently researching areas to buy my very first IP.

Was quite interested in the Air Pentridge development in Coburg. Reasons: relatively spacious apartments, low body corporate costs, near public transport and shops, near schools and a creek, and off the main tram route (not noisy - which is a bonus).

I note that several people have been advising against the Pentridge redevelopment. Would greatly appreciate your advice why, and why it would be difficult to hold.

Thanks for your time! :)
Click to expand...

Hi Maz
welcome to SS.

Sorry, missed a couple of words out.

What I meant was that Period homes are harder to hold due to entry level and low yields.

Cheers, MTR
 
Mazda said:
I note that several people have been advising against the Pentridge redevelopment. Would greatly appreciate your advice why, and why it would be difficult to hold.
Click to expand...

For me, it is the following:

1. still remember what Pentridge was - so a psychological block. Not sure whether renters care or not

2. lack of scarcity / uniqueness / character- all the houses in there look the same...again, not sure if renters care, but may affect cg in the medium term (having said that, porbably less maintenance than a 100 year old period home)

3. "Wrong side" of Syd Rd from Railway (tram isn't a viable proposition to city)

Also, I am not sure if the modern designs of the homes took into consideration some of the cultural needs of the main demographic in the area (needs closed designs / not open design)

Cheers,

The Y-man
 
Thanks for the quick responses! Much appreciated. I still have heaps to learn about property, and your website is good for an objective overview. :)

@ MTR - yes I agree that Period homes are pretty high maintenance. I was actually looking at the Air Pentridge apartments.

Y-Man - the proposed annual body corp costs for the 2-bed apartment I am looking at is $1,500. (no pool or gym). Other new OTP apartments are charging anywhere from $2,500 onwards. (even the new apartments near-ish Highpoint shopping centre in Maribynong)

I do agree that the over-crowded Sydney Road is off-putting, and the fact that it will be built on a prison compound is making me a little nervous. Then someone reminded me that Victoria Markets was once a cemetary, and the apartments surrounding that are now prime property.

I also realize that more apartments will be built in the surrounding area, and am not entirely sure if it will cause a glut (lack of scarcity) and therefore eventually drive prices down.
 
Coburg Good or Bad

Re Coburg posts:

As long standing resident I'd have to say the Melville Road area is good as right accross the way Coonan's Hill prices are stratospheric. Melville/Moreland Road area has access to trams (No 55) Trains, Sydney Road trams, Bus to Ivanhoe/Essendon, Freeway/Tollway access. Now here is the kicker we are the same distance from the CBD as Kew Junction and we can get into CBD much quicker. This is being realised and getting reflected in the prices.

If you want some detail about Coburg just send me a message directly.

Cheers All
And A Happy & Prosperous 2010!
 
Mazda said:
Y-Man - the proposed annual body corp costs for the 2-bed apartment I am looking at is $1,500. .
Click to expand...

Beware the word "proposed".

Do you know how much it costs to maintain a lift for 18 floors? I bet you it's not factored in.

Cheers,

The Y-man
 
I don't know how much it costs to maintain a lift, the security system, the proposed water tanks and the proposed wind turbines :p

More questions to hound the developer / sales guy on.

Thanks for all the advice! Much appreciated.
 
Mazda said:
I don't know how much it costs to maintain a lift, the security system, the proposed water tanks and the proposed wind turbines :p

More questions to hound the developer / sales guy on.

Thanks for all the advice! Much appreciated.
Click to expand...

Ball park for an 18 storey building will probably be $500k ~ $1 million for a 5~10 year period.

Remember the developer/sales person is under no obligation to reveal these costs to you - and the ACTUAL BC budget is struck at the first AGM (which will have nothing to do with the developer / sales).


Cheers,

The Y-man
 
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