Yeah I've been there. Maybe we'll agree to disagree on the 'ugly terraces' point as I find spec homes far more disgusting than the Victorian cottages built 120 years ago. Perhaps I am biased because I own several ugly terrace houses.
Point Cook, VIC
- Thread starter neofite
- Start date
Yeah I've been there. Maybe we'll agree to disagree on the 'ugly terraces' point as I find spec homes far more disgusting than the Victorian cottages built 120 years ago. Perhaps I am biased because I own several ugly terrace houses.
I guess you could say that all newly subdivided areas on the fringes of cities tend to start off with a higher proportion of first home buyers....but not all of them stay this way.
Given time and urban Sprawl they become less outer ring and more semi middle ring.....with more developed infrastructure of its own.
Jeez...Glenn Waverley was out in the middle of nowhere 50 years ago!
In the specific case of point cook, there are a lot of upgraders...2nd and third home buyers in that specific suburb now....a much higher percentage perhaps than 10 years ago.
So what was a first home buyer haven is now more popular with people who can afford AND choose to live in the area because of the perceived value and lifestyle.
Areas change with time.....to paint all first home buyer havens with the one brush is a little rough!
If you have a long term view and have the time on your side these areas represent good value at certain points in time.
I will wager that it will not be a slum area of the future with the development of the infrastructure within the suburb and the number of upgrades coming to the suburb.
Nathan
Given time and urban Sprawl they become less outer ring and more semi middle ring.....with more developed infrastructure of its own.
Jeez...Glenn Waverley was out in the middle of nowhere 50 years ago!
In the specific case of point cook, there are a lot of upgraders...2nd and third home buyers in that specific suburb now....a much higher percentage perhaps than 10 years ago.
So what was a first home buyer haven is now more popular with people who can afford AND choose to live in the area because of the perceived value and lifestyle.
Areas change with time.....to paint all first home buyer havens with the one brush is a little rough!
If you have a long term view and have the time on your side these areas represent good value at certain points in time.
I will wager that it will not be a slum area of the future with the development of the infrastructure within the suburb and the number of upgrades coming to the suburb.
Nathan
I wonder if it's no coincidence Fairfax has been running headlines on Point Cook et all today.
http://theage.domain.com.au/real-es...g-loan-repayment-disaster-20120708-21pkl.html
http://www.theage.com.au/opinion/ed...-a-disaster-in-the-making-20120708-21pei.html
The problems with investing in these areas was something I talked extensively about on this thread and on other threads between 2009-2011 and the impact of an ecnomic slump and where it'd hit hardest was again something I predicted a few years ago.
No point for me to re-make these arguments, except to say if you're interested you can look through this thread or at some of my posts in other similar threads or even read the newspaper which I've kindly attached a link to.
PS: I agree areas change over time, just depends on what your target investment horizon is. Mine is 3-4 years at the moment. Rather than rely on purely long-term hold and hope the property value goes up, some people have unique strategies in these areas and make good money - some of which are well-documented on this forum but there are many others here who I know on a personal basis who do not like talking up their achievements so I won't dwelve in to the strategy. That said if your strategy is simply a buy and hold and hope it goes up, I'd suspect you' be underwater if you bought after mid-09.
http://theage.domain.com.au/real-es...g-loan-repayment-disaster-20120708-21pkl.html
http://www.theage.com.au/opinion/ed...-a-disaster-in-the-making-20120708-21pei.html
The problems with investing in these areas was something I talked extensively about on this thread and on other threads between 2009-2011 and the impact of an ecnomic slump and where it'd hit hardest was again something I predicted a few years ago.
No point for me to re-make these arguments, except to say if you're interested you can look through this thread or at some of my posts in other similar threads or even read the newspaper which I've kindly attached a link to.
PS: I agree areas change over time, just depends on what your target investment horizon is. Mine is 3-4 years at the moment. Rather than rely on purely long-term hold and hope the property value goes up, some people have unique strategies in these areas and make good money - some of which are well-documented on this forum but there are many others here who I know on a personal basis who do not like talking up their achievements so I won't dwelve in to the strategy. That said if your strategy is simply a buy and hold and hope it goes up, I'd suspect you' be underwater if you bought after mid-09.
As far as asthetics go, each to their own.
But we can all agree you won't be rebuilding Melbourne University, RMIT, Victoria Market, MCG etc any time soon out there, nor the 20 different tram routes outside a Parkville investment property.
The future slums of Melbourne are in new estates like point cook. Also expect 0 cg in the next 5 years
I worked there for a couple of years day and night, and it is not a nice area, much nicer then werribee, hoppers, truganina etc, but if all things being equal especially price, I certainly wouldnt live there
they are designed to appeal for the low income, FHO demographics, being a FHO you usually want a big backyard or a brand new property, maybe its a gen Y thing, maybe its a trend thing, so to build new on a budget, quality obviously has to be the first thing to be compromised!
Based on recent sales data, prices, suburb performance, I'd say pretty confidently the market begs to differ.
interesting examples on melton west, frankston and thomastown
the more extreme example is : -
1 waterman place frankston
bought in 2009 : 600k
passed in :325K
pt cook is not for investment
3030 includes werribee and a couple of other suburbs as well if I remember correctly.
Anyway, I have lived in point cook for 8 yrs and own a couple of properties here. the price has dropped a lot compared to 09/10 and not easy to get a tenant with reasonable yield these days.
4-bedroom houses are fighting at $300 pw which is ridiculously low and still have a lot of vacancy.
But for living, this is a good area. parks and infrastructure well planned.
Definitely not for investment though.
3030 includes werribee and a couple of other suburbs as well if I remember correctly.
Anyway, I have lived in point cook for 8 yrs and own a couple of properties here. the price has dropped a lot compared to 09/10 and not easy to get a tenant with reasonable yield these days.
4-bedroom houses are fighting at $300 pw which is ridiculously low and still have a lot of vacancy.
But for living, this is a good area. parks and infrastructure well planned.
Definitely not for investment though.
thats obviously proves lack of interest, not actual market value,
for $325k id but it immediately, $600k might be too expensive, but normally it would sell for $500k+, awesome location, good blocksize, corner block
Is that the same criteria you use to assess 3030?
Market value is what the market is willing to pay at a particular point in time.
And in short it comes down to supply (ie oversupply) and demand (ie hardly any). Economics 101.
Market value is what the market is willing to pay at a particular point in time.
And in short it comes down to supply (ie oversupply) and demand (ie hardly any). Economics 101.
so who do you think the demographics of Point Cook are then?
as for frankston, yes, oversupply, and low demand, however, $325k for that is silly, thats why it wasnt let go at $325k, had they got a more realistic price, unless they were completely stupid, then they would have sold it to the highest bidder
All suburbs have mixed demographics.
But there's probably a bigger combination of blue collar, low-income white collar, FHO buyers who are owners in Point Cook. The ones who are losing jobs in the past 6 months and will probably continue to do so in the next 24 months. I predicted this 3 years ago on this very forum and cautioned members against investing in the mortgage belt.
It's as a previous poster said: low yields, low growth, relatively high mortgage stress, oversupply, competing with an infinite amount of new land and new suburbs. Not sure where the investment thesis was, and obviously time proved me right.
But there's probably a bigger combination of blue collar, low-income white collar, FHO buyers who are owners in Point Cook. The ones who are losing jobs in the past 6 months and will probably continue to do so in the next 24 months. I predicted this 3 years ago on this very forum and cautioned members against investing in the mortgage belt.
It's as a previous poster said: low yields, low growth, relatively high mortgage stress, oversupply, competing with an infinite amount of new land and new suburbs. Not sure where the investment thesis was, and obviously time proved me right.
Agreed....generally speaking, over a short 3 year timeframe, low yeilds, growth and growing supply with new construction would not have made alot of fringe areas ideal for investors in the short term.
Same could be said about some established areas also...in terms of growth and yield...and that is without the new supply issue.
Candy invest above said Point Cook is a nice place to live... and even though they sugesst its not a place to invest in...she still bought a house and is living thier.....most people go to these new areas to buy thier own homes to live in.....just like i did 10 years ago.
ALOT can happen/change/grow/develop in a suburb over a 10 year period.
Timing and time in the market have proven others who have lived/invested in some of these mortgage belt areas over a LONGER period right also.
I am not saying outer suburbs are better than middle/inner OR vice versa, but it's not all negative and bad to invest in growing outer areas, depending on your end goal/timeframe/budget personal situation etc.
It can be yours for $385k or a bit lower apparently.......
http://www.stockdaleleggo.com.au/frankston/details.asp?internetid=259594&OFFICE_ID=125
wow! that is a big price drop, unless their definition of $385k+ means anything under $450k will be laughed at)
3 weeks ago, a 700sqm block above the triangle, quite worn out, needing a few renovations to make it neat and just rentable, sold at auction for $320k,
and another auction got passed in at $290k the same day in slightly better condition
so based on that , and this property being far superior condition, corner block I would have easily thought $500k was easily acheivable
good buy for the long run
I have no idea what a good price for that property should be as I haven't got any idea about that suburb. But purely from an investment point of view I'd be wanting 6-6.5% return minimum. Rent is around $400 pw for similar properties which means I personally wouldn't pay more than $325K for it 
You mean 'cried at' considering what they paid initially
think he meant the RE agent is severely under-quoting
