New Estates

Hi All,

I am considering my first IP but still am open to homes in new estates or established homes. Just thought I'd get some of your thoughts for those experienced in this field of purchasing new homes in new estates as an invesment. It sounds tempting considering the stamp duty savings, depreciation benefits. Also my opinion is that when I purchase it early in the estate development phase, ppl are still reluctant to move and live there because of the lack of infrastructure and just the general stigma that it is not yet established. But give it a few years and it will be a place everybody wants to live in because of all the new infrastrucutre, new homes and landscaping. Of course this is not true for all estates.

Example, My friends bought in the chase estate in berwick 3 years ago. At that time the estate was about 3 years old ( so about half way thru in the development. I bought the following year. Currently, the properties in the estate are selling way approx 420 - 450k. When I bought it prices were about 350 - 380 k. Also, I managed to speak to the landlord of our neighbour and he said that he had 32 appications for his property. At at his current rents, it is positively geared. Just doing the sums on my 80 LVR home, it will also be positively geared if it was rented out. So, it has worked out very well. I did my research but didnt think that it would be quite as good as this.


So my question is, are there new estates that are worth investing in? I have read a lot about williams landing, and I have a feeling that it will do very well just like how so many of the point cook estates have fared well. What do ppl here think?
 
Hi,

I haerd that the lands in Williams Landing are selling very well. If I have the money probably I will consider buying there, but the price is higher compared to the surrounding suburbs. Its main selling point is the proposed railway station, I believe.

Point Cook is big, some parts of Point Cook are a bit too far from the town centre.
 
Gawd this is spammy!
But hey, in another forum I found:

"its rim hell from current understanding.
in addition buying that old RAAF airfield with pollutants and leaching of old avtur fuel and other chemicals into the soil, I hope the land is real cheap!"

And the railway is proposed for 2013, which means it will most likely take longer.
http://wyndham-leader.whereilive.com.au/news/story/williams-landing-train-three-years-away/

Not that I ever set foot on the place, nor would I want to.
 
Fuister

I think you answered your own question in your first paragraph

"ppl are still reluctant to move and live there because of the lack of infrastructure and just the general stigma that it is not yet established"

When you say PPL these are less likely to be people wanting to set up a PPOR, I could not see a renter going out of there way to be wanting to be the first into a estate so they can have no infrastructure around them ( except for all the new houses being built every day).

Jezza
 
I've always wondered how easy is it to rent out in a new housing estate - aren't most people who buy in these areas owner-occupiers?

Otherwise I've always thought it seemed like a good idea.
 
I've always wondered how easy is it to rent out in a new housing estate - aren't most people who buy in these areas owner-occupiers?

Otherwise I've always thought it seemed like a good idea.

I think it depends on the location. Some suburbs like Pt Cook is very big, some part is easier to rent out than others.
 
Otherwise I've always thought it seemed like a good idea.

It's rare that you get a decent rental return as there is a premium for new properties.
Though historically there has been exceptions at various times & places (metro areas) in the last 20 yrs.
 
Often the renters in those developing suburbs are people in the process of building. So they rent nearby for roughly a year while their own house is getting built.

In terms of a train station, talk to the people of South Morang. Waiting at least 10 years past the promised date.

What does Point Cook have over say Tarneit area north of Hoppers and Werribee? My perception is point cook is a bit nicer and slightly more upmarkert (10%).
 
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