Pascoe Vale, Preston, Reservoir

Hi everyone,

Thoughts on investing in a house or townhouse in Pascoe Vale, Preston, Reservoir? Reasoning is they border some slightly more expensive suburbs such as Coburg, Thornbury etc.

Budget is around $500k.

Thanks.
 
Old or New ? I have quoted a lot of new units and town house developments in these areas of late so I am assuming others are feeling the same way.
 
Hi everyone,

Pascoe Vale, Preston, Reservoir? Reasoning is they border some slightly more expensive suburbs such as Coburg, Thornbury etc.

Whats your main interest for investing in these areas? Because they are cheaper than surrounding areas? You have some interest in owning property in these areas? You have reviewed the investment profiles for these areas? etc
 
I'm a first time investor so constructive comments/advice are greatly appreciated:

Mainly because of the ripple effect:
- Brunswick and Northcote became expensive for houses and townhouses
- Followed by Coburg and Thornbury
- Next suburbs that are still slightly affordable are Pascoe Vale, Preston, Reservoir

I also checked the Boomtown ratings (easy way to compare DSR scores). Anyone else used it?

I would consider an old house with land or a new townhouse.
 
...Mainly because of the ripple effect..

How long is your hold timeframe?

Are you looking to sell at a future point for significant profit? Develop?

What are the council's plans for these suburbs? Rezoning etc.?

Past performance is not necessarily a guide to future performance and is no guarantee of future results

Additionally, have you compared expected growth of these areas to others?

Just some points to consider.
 
Thanks for replying. Hold time is 20 yrs + hopefully.

If there was a house with land big enough for redevelopment, id consider it but wouldn't develop for at least ten years.

How do you personally go about comparing growth between suburbs?
 
All thos areas mentioned developers are making money there for now. Doubt much is getting sold but buy and hold.
 
Thanks for replying. Hold time is 20 yrs + hopefully...

IMO in that timeframe, any well researched purchase in the 4 biggest capitals in the inner ring of suburbs, i.e., for Melbourne generally up to 10km is probably a safe bet, & probably further for the East.

...If there was a house with land big enough for redevelopment, id consider it but wouldn't develop for at least ten years...
..with a view to adding value, if the sums add up and are worthwhile probably even better.

...How do you personally go about comparing growth between suburbs?
...I haven't made it a priority to know how to compare growth, but I have made it a priority to know good value. Poor advertising and distressed sales, &/or quick sales, simple cosmetic renovations to add value.

For the purposes of your example & $500K PP (apart from a distressed sale or good deal falling into your lap) look at what is considered an undervalued suburb in Melbourne, or even a locality.

What draws people in, and what will draw people in for the next 20 years. Additionally, what future developments have the council &/or government agreed to. I would identify & target those areas in general.

Some quick searches, e.g.:
http://www.realestate.com.au/property-apartment-vic-west+melbourne-116596507 - as long as it's not massive tower.:)
http://www.realestate.com.au/property-house-vic-kensington-116891639
http://www.realestate.com.au/property-townhouse-vic-carlton-116430895 - a bit out of range but similar

If I had to choose from your suburbs stated, Reservoir is, or may be the biggest suburb in Melbourne, population-wise. I would investigate more into P-Vale being a lot smaller & adjacent to the high median Strathmore, just my opinion as it would gentrify quicker etc.

Like I said in the first paragraph, 20 years hold - you will do well in Melbourne metro, if anything just simply based on future Govt. predictions of population etc. I hope this is somewhat useful.
 
We live in Pascoe Vale South and love the area, there has been great capital gains in the 6 years we have been here and hopefully more to come. Location is great, there is the Melville tram into the city, easy access to Tulla and the Calder, ringroads and toll into the city. On a good day 20min to the airport no problem.

One thing to look out for is whether properties are in the Strathmore school zone, this can add a whack to the properties value for families as it is one of the best public schools in Melbourne.

We're getting priced out in terms of buying an investment but if we could find a decent sized block for a development we would grab it.
 
There was a recent thread on Coburg/Preston/reservoir with some great insights from the yman and others - just do a quick search

K
 
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