Seeking advice - 1st PPOR in Melb

Hi all,

Firstly, thanks in advance for any advice. First post here and I am still surprised at how much info is freely given.

And secondly...

1. Will be our first purchase: PPOR in Melbourne. Want to live for 3-5 years and use as IP later. Doesn't have to be internally flash as I'm an architect with carpenter family. Less flash, the better, IMO.

2. Suburbs: Inner city, ideally (not so keen on CBD, generally). Sth Yarra, Richmond, as far south as Ripponlea, Elwood, North Melb (much more so than Kensington, Flem), Fitzroy North, Brunswick (less so) and surrounding suburbs. Will go further out if essential.

4. We have budgeted for 385K (110-115,000 of which we already have) based on what we see as serviceable. Have shared income of 90-100K, before tax. I have just started new job, and wife has been pre-approved for 370.

Can we expect a 2-bedder (ideally with lockup, but parking is highly desirable from an investment point of view), ideally on 1st floor and up, for our budget, in these areas?

Any help would be very, very appreciated. We have a place we are keen on bidding on very soon and really want to know what we should expect.

Thanks again, Adam.
 
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Thanks for the reply Y-man. Positive is good!

Hat to be a bother, but do you - or anyone - have any advice on how to determine what a property is likely to go for in a particular area?
 
Thanks for the reply Y-man. Positive is good!

Hat to be a bother, but do you - or anyone - have any advice on how to determine what a property is likely to go for in a particular area?

Go to realestate.com.au
Type in a suburb - eg St Kilda East
Number of bedrooms 2
Price range to a max of $385k

You'll get things like
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=47562224&s=vic&tm=1257854034

and

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=47562224&s=vic&tm=1257854034

pop up....

Cheers,

The Y-man
 
Go to realestate.com.au
Type in a suburb - eg St Kilda East
Number of bedrooms 2
Price range to a max of $385k

Thanks Y-man. Just a few properties the agent has given me an 'estimate', I'd like to know what to expect and perhaps put in an offer prior to auction. I think the estimate is too low, judging by what I've seen. Thought maybe there was another way to find out a more realistic price.

Thanks again - appreciate the help.
 
Thanks Y-man. Just a few properties the agent has given me an 'estimate', I'd like to know what to expect and perhaps put in an offer prior to auction. I think the estimate is too low, judging by what I've seen. Thought maybe there was another way to find out a more realistic price.

Thanks again - appreciate the help.

Have a look at the second link - the highest they expect is theoretically $415k, so go in there with a $350k offer and see what they counter with :)

For auctions, add 10%-20% to the upper range of the estimate.

Should have asked me earlier in the year - sold our 2BR in Prahran for $350 after NOBODY turned up to the auction....

Cheers,

The Y-man
 
Man, that is tough. I guess no one could have expected that...

Thanks so much - that is great info.

Adam

Well actually, we were sort of used to it by then, because it was the 2nd auction where no one fronted.... mid-07 to early-08 was obviously not a time to be selling! :eek:

Cheers,

The Y-man
 
Realistic

groperfish, I would never say never, but $385k for a 2 bedder with lock-up parking will be, realistically, extremely difficult to find.

This is one sub-market that I have been following for sometime now. I would say that you will need to spend something with a 4 in front of it. And car parking may only be an outdoor car spot, or maybe even a carport-style cover and even in some areas, no parking in some cases.

I would target St Kilda East and maybe even some parts of St Kilda but the specific location in St Kilda can sometimes be hit and miss. All other locations you mention will be tough.

As for price ranges quoted, a rule of thumb I would use is this but you will need to be aware of the REA practice in quoting prices. They are all a little different. The top end of the range should be within 10% of the reserve price. However, given the market today, I have seen prices go 10-15% above this 'so-called' reserve price.

Don't want to be too pessimistic but you should be aware of what is happening in the market. Good luck with the search.
 
groperfish, I would never say never, but $385k for a 2 bedder with lock-up parking will be, realistically, extremely difficult to find.

As for price ranges quoted, a rule of thumb I would use is this but you will need to be aware of the REA practice in quoting prices. They are all a little different. The top end of the range should be within 10% of the reserve price. However, given the market today, I have seen prices go 10-15% above this 'so-called' reserve price.

Don't want to be too pessimistic but you should be aware of what is happening in the market. Good luck with the search.

Thanks buzz. Sounds like realistic advice, and from my research I think you are correct about these areas, and the orice we can pay.

From your advice, it seems as we may really struggle to find a decent 2 bedder in these areas at all, let alone one with a lockup.

Thanks again.
 
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