suggestions for melbourne please

[ponyfire]

Hi Guys
I'm still here, more than 12 months later, and finally in a position to make the first purchase.
As I live in Nth country Vic I am, preferrably, looking for a suburb on the northern, north western side of Melbourne. (save a bit of petrol)
Can anyone suggest somewhere that has houses of smiliar type so that I can more easily decide how much to offer?
I want to purchase under $240k as that way I can buy 3 in quick succession using equity.
Are there any groups of likeminded people who get together to chat about IP's on my side of Melbourne?
Cheers
Pony

 

[The Y-man]

Hi Ponyfire,

We get together every month (check the "Meeting Point" board).
Our venue alternates between Hawthorn and Footscray (this month i.e. next week - it will be in Hawthorn)

Look forward to seeing you at one of the meets.

Cheers,

The Y-man

 

[ponyfire]

Thanks The Y man
I look forward to it too.
Cheers
Pony

 

[chadsimons]

South Eastern Corridor

Hi Pony,

I dont know much about your side of town, but if it purly for investment purposes, it is worth checking out the South Eastern corridor. I beleive it is the fastest growth area and has the most amount of people moving into the area per year. I also know of really good house and land deals out in Pakenham if you are interested.It is in a Delfin estate as well.Very popular are.

This guy builds house and land packages, and his business model actually targets investors. His prices are really good and the properties have instant equity in them when completed. I have recently purchased a block which settles in Jan 2006 and will be using him to build with.

Simon Dunstan is his name: c/p 0412 323 712 or 03 5995 8166

All the very best with your investing.

Regards

Chad

 

[ponyfire]

Hi Chad
When you say south eastern corridoor, do you mean the suburbs along the south eastern freeway?
I would have thought Pakenham was a bit far out for CG which is our main aim?
When you say 'instant equity' have you actually experienced this yourself?
Thanks
Pony

 

[Michael Yardney]

I would agree that if it is capital growth you are looking for, you are more likely to get this in the South Eastern suburbs, but closer in to town than Pakenham.

Residex, many of of other forecasters and our internal research suggests that the outer suburbs are unlikley to grow much in the next few years because of affordibility issues for the demographics that buy in these areas.

Inner bayside areas should have considerably higher growth rates.

You can buy an established 2 or 3 bedroom flat in say Elwood or St Kilda for less than the house in Pakenham, but get an equivalnet rent and probably double the capital growth.

 

[hkr]

I always seem to get puzzled by the inner city vs outer city comparison when it comes to c.g.

I have a IP in cranebourne which i bought in '95 for 90K. Its now worth a minimum $205K.

So effectively its has doubled in this period as well despite being the outer most suburb in melb.

I will really like to know what is the proportion of appreciation is some of these inner city suburbs....

 

[pieman]

In 95' you could buy ordinary 2 bedders in Elwood/St kildat for 65k - they are now worth 280+

 

[The Y-man]

My understanding is that while CG is experienced in all suburbs, the further out you move from Melbourne, the more volatility there is. The inner (zone 1) suburbs tend to have a more uniform growth trend than say a suburb in zone 3, although as Michael points out, the bayside has a character all its own.

Mind you, I haven't charted the hard data to back this up - Spiderman?????

Cheers,

The Y-man

 

[hkr]

Pieman,

Please remember, iam not really comparing one suburb. I am really after the trend...

As far i have read all the articles the median price seems to have doubled in melb. in last 8-9 years which is what has what happened in outer suburbs also....

 

[Bill.L]

Hi all,

Chadsimons, is this the type of place from delphin that interests you??

http://www.realestate.com.au/realestate/agent/delfin+realty+pakenham/delpak/102413974

Why do you think that this would be a much better investment than something like this in the same suburb??
http://www.realestate.com.au/cgi-bi...0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

The second property, though not new, is closer to schools/shopping centre etc, a larger house with a second bathroom, and on a much larger block of land.
Pakenham is only 53km from the CBD
Chad, what makes you think new is a better investment????

Ponyfire,
If your prepared to spend a bit of time and effort on your investment, then something like this could be a good place to investigate, especially if you picked it up cheaply enough.
http://www.realestate.com.au/cgi-bi...0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=
(It is also a bit closer to your home than Pakenham)

Please note I have not studied the Reservoir area at all. This was just from a quick 5 minute look on the web.

bye

 

[Monopoly]

Please note I have not studied the Reservoir area at all. This was just from a quick 5 minute look on the web.

Bill,

I know Reservoir, having lived there for a few years in my early teens. Actually, my second and third IPs were in Preston and Reservoir. It was once upon a time a very undervalued area, with residents from an extreme spectrum (from the elderly to the more HC "less desirable" types) and not much in between (thankfully WE lived among the "elderly" thus attributing to my developed esteem for the older/senior citizens of our society).

The average home in Reservoir has an entry price of around the 240-250K mark for a fairly old (established, but with loads of potential) type of property. And depending on the exact location, with a few dollars spent on some of these "oldie" but ever so SOLID homes, IMO can only grow in value. See for example:
http://www.realestate.com.au/cgi-bi...0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

Cheddar Road is one of the main roads, and during peak hour can become heavily congested. That is not to say, one should not buy there, and if you have no problem with buying on main roads, and don't mind a bit of traffic noise, then go for it. After all, infrastructure is good, lots of amenities, shops (Northland), hospitals (ex Panch, Northern) public transport is very accessible, great city views from some streets and <15km from the CBD. You really can't go wrong!!!

It really is a lovely (old) area, and has some wonderful family outing spots (ie. Edwardes (man made) Lake). I was there just this weekend actually, with my little girl, riding our bikes, feeding the ducks and our faces with ice-cream at the same time!!!

Cheers,

Jo

 

[Bill.L]

Hi all,

Thanks Jo. I plead complete ignorance on Reservoir
I did not even look at where the property was located in Reservoir. It just occurred to me that something like this only a few km from the CBD (12km ?) would be a better place for Ponyfire to look into, especially as it would be easier for Ponyfire to get there.

bye

 

[Monopoly]

Hi all,

Thanks Jo. I plead complete ignorance on Reservoir
I did not even look at where the property was located in Reservoir. It just occurred to me that something like this only a few km from the CBD (12km ?) would be a better place for Ponyfire to look into, especially as it would be easier for Ponyfire to get there. bye

No sweat Bill,

The only reason I know Reservoir (like so many other parts of Melbourne) is because I have lived in so many different suburbs, having moved so often in my years that my ability to settle for too long in one place is almost unthinkable!!! Perhaps I was a gypsy in a past life!!!

Sorry, I changed the 12km to <15km (properties will range from say a 12-14km radius).

But you are right, it would be closer for Ponyfire, and definitely more accessible by PT.

Cheers,

Jo

 

[TwoPlus]

Hi all,

I have some friends who were renting in Resevoir nearby both these properties - they had to move out because the owners were putting units on the block. Their block was HUGE compared to the "modern" plot allocation of today.

If I had the $$$ right now (they're busy elseswhere ) I'd land bank these places for a few years (while renting out the house, of course), then look at putting units on or selling it so someone else can do it.

 

[Peter Parker]

My understanding is that while CG is experienced in all suburbs, the further out you move from Melbourne, the more volatility there is. The inner (zone 1) suburbs tend to have a more uniform growth trend than say a suburb in zone 3, although as Michael points out, the bayside has a character all its own.

Mind you, I haven't charted the hard data to back this up - Spiderman?????

Y-Man, the nearest I got to charting long-term growth patterns was in this comparison here:

http://www.somersoft.com/forums/showpost.php?p=151507&postcount=7

The survey included inner, middle and outer suburbs, though no bayside. Very roughly, the outer suburbs appreciated well in the 60s & 70s, but in the last 20 or so years, the inner areas did better.

Looking at the figures again, periods of disappointing growth performance can be up to 20 years long and could include two or more property cycles (contrary to popular belief that 'provided I can sustain the portfolio until the next boom I'm home and hosed').

For example, Dandenong grew from $30k to $72k between 1975 and 1995. This is approx 4% growth pa during a period when the CPI average would have been around 8% pa, so in real terms the property lost value badly over two decades. During the high-growth 1995-2005 period, the property would have made up lost ground, but still would have done little better than CPI over a 30 year period (and even that doesn't allow for today's bigger house sizes).

Fortunately the rampant inflation combined with negative real interest rates and the short time to cashflow positive status (as occurred in the 1970s) made borrowing to invest highly profitable, even if the performance of the underlying asset was mediocre, as was the case for Dandenong houses.

Rgds, Peter

 

[ponyfire]

goose bumps

Hi all,

I have some friends who were renting in Resevoir nearby both these properties - they had to move out because the owners were putting units on the block. Their block was HUGE compared to the "modern" plot allocation of today.

If I had the $$$ right now (they're busy elseswhere ) I'd land bank these places for a few years (while renting out the house, of course), then look at putting units on or selling it so someone else can do it.

Hi All
The goose bumps are rising as I read your posts about Reservoir,this is a suburb I had picked for further research largely due to it's position, affordability and the fact that houses are selling there at present.

The info you supply,Jo and Twoplus is a great help to filling out the picture from my desk in Nrthn Vic.

Frankston is another I have focused on, although it is a long way to travel, I thought it might be one of the last beachside areas still relatively cheap.

We are not worried much about yeild, CG is our aim.

Any thoughts on where Bendigo is going? This is much closer to home and has had fantastic CG in recent years however I have been advised against regional areas.

The more I get into this the more questions I have, very frustrating at times!
This whole discussion is brilliant, for me anyway!

Cheers
Pony

 

[Monopoly]

Frankston is another I have focused on, although it is a long way to travel, I thought it might be one of the last beachside areas still relatively cheap.

We are not worried much about yeild, CG is our aim.

Hi Ponyfire,

Yes Frankston is another of my favs, and my confidence in its impending growth is such that I have now purchased (most recent addition being last month) 3 properties within its boundaries. If you search under "Frankston" you will find threads of discussion on the area as well as references to such articles as February's API (Australian Property Investors) magazine which dissect some of the different parts of same. Here's a link that may be of interest:

http://www.id.com.au/frankston/forecastid/default.asp?WebID=10&MnID=1&PgID=1&bhcp=1

I have expressed my views many times re Frankston (of which no doubt some here will agree/disagree with):

(Please note: there are other areas surrounding Frankston that are just as worthwhile investigating, but for the sake of the exercise, I am addressing the Frankston part of your question only, otherwise this would become an even moreso thesis-length post!!!)

North Frankston - still relatively cheap, you can pick up a house for <200K but note, it is in the "less desirable" section of Frankston, surrounded by housing commission homes. But if that does not bother you, and you don't mind the stigma (which IMO will eventually die off) it is definitely worth considering.

Frankston South - has had a growth spurt in recent years, still some steam left it in for the future, but because houses there are fairly exxy, the CG potential is not as likely to be as good as buying in a cheaper part of Frankston and sitting on it. But Sth Frankston does have some gorgeous seaview properties which have equally eye-catching million dollar price tags!!!

Central Frankston AND Frankston Heights both reasonably priced, with good growth potential and far enough removed from the less desirable side of town. Median price for these areas is 220-250K for older but very solid homes, with loads of potential to reno and make a killing on!!!

Either way, whichever part of Frankston you choose to invest in (if you so decide) try and find properties within the FHS (Frankston High School) zone as the secondary school there is very popular with parents of teenagers, hence it is not surprising that rental demand is quite high for properties within this district.

As for distance, do bear in mind that work has commenced on the freeway, thus it will cut down travelling time commuting to and from Frankston in the near future.

Hope this helps paint a clearer picture of Frankston for you.

Cheers,

Jo

 

[priceboy]

St Kilda/Elwood great investments

I was reading property predictions from residex the other day and there is still massive growth forecast for StKilda/Elwood. I have an appartment on the marina and in two years i've had about 17% growth.

If you drive around this area there are architect and builders signs out the front of heaps of houses being renovated.

Even two years ago I'd look at these red clinker brick homes with 4ft grass in the front yard and think "knock them down", these houses have since been beautifully renovated.

Also, its easy to get tennants in this area.

priceboy

 

[ponyfire]

Wow Jo
You've given me a great basis to start my research in Frankston. Owning a property there could be a good excuse to take my landlocked kids to the beach occassionally...Hmmm, not sure if that's a good reason?

Know what you mean about schools, we are currently looking to rent in the Kilmore/Lancefield area, originally our ideal area was much larger but the availability of decent high schools has cut that down considerably.

On Reservoir again, I spoke to an investor in Melb today who said Reservoir is a poor suburb with high crime rate and it would be easy to get into because other investors wouldn't touch it. This didn't seem to be reflected by the postcode profile I got from propertyvalue.com or by what has been said in this thread.

Learning and loving it
Pony