Sunshine in Melbourne

[tamugrg]

Hi,

I am looking for 2 or 3 bedroom house or unit as my first IP in Sunshine, Sunshine North or Sunshine West. Can you suggest me how the area is in terms or property investing considering factors like rentable & capital growth. How does it compare to buying IP in hoppers crossing or werribee. I feel it might be difficult to rent out your property in the latter 2 areas.

Cheers,

 

[Mindmaster]

Sunshine is one of my preferred investment suburbs

The median is 335k and there is opportunity to purchase below the median. You can find blocks up to 600-700m in size, the area is slowly being gentrified and it is one of the cheapest suburbs with in 15 kilometers of the CBD. It also has good transport, shopping, schools and other infrastructure.

Bad points? No beaches, no large infrastructure developments (that I know of)

 

[Propertunity]

I am looking for 2 or 3 bedroom house or unit as my first IP in Sunshine, Sunshine North or Sunshine West. Can you suggest me how the area is in terms or property investing considering factors like rentable

Vacancy rate is 3% in Sunshine which is considered balanced.
http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=3020&t=1

& capital growth.

http://www.investsmart.com.au/property/search.asp?OrderBy=1&Suburb=3020
Click on the magnifying glass to see capital growth charts. Yield is also averaged there for you. It seems a bit low at 4.2% (normally 5+% for resi). But mabe rents have not increased in line with house prices yet? CG last 2 years is going gang busters. That does not mean it will be the same for the next 2 years.

Suburb profile:
http://www.myrp.com.au/viewFreeRepo...eet_temp=&streetExt=&streetDir=&postcode=3020

How does it compare to buying IP in hoppers crossing or werribee. I feel it might be difficult to rent out your property in the latter 2 areas.

Just use the links above for the other suburbs to do your comparisons.

This is just desktop analysis. You need to do your DD on the ground as well.

Cheers.

 

[shim]

I was looking into sunshine a couple of months ago and I think Sunshine has a lot of potential for growth. It's relatively close to the CBD however doesn't cost as much as most other suburbs within similar distance. Rental vacancy is low and the area is much nicer than areas similarly priced in Broadmeadows, Laverton and Hoppers crossing. I think every house in every suburb has potential to grow if it's in a great location within walking distance to train stations, shops and schools. Good Luck!

 

[DonG]

I grew up in Sunshine and currently have investment property there. Over recent years the area has experienced great capital gains and I've never had a rental vacancy for more than 2 weeks.

I think the big advantage for Sunshine is transportation. The Sunshine train station is located in zone 1 and the Western Ring Road provides ready access to the city (15-20 mins), Melbourne Airport (15-20 mins), Geelong road and Ballarat road.

There is not a lot of vacant land in the area so I would expect that capital growth would continue to be good, as supply is limited. Areas like Hoppers Crossing and Werribee, whilst pleasant to live in, are surrounded by large areas of open land. True, some of this land is farmland, but it is farmland like this that the authorities rezone as residential land ten years down the track. The farmer makes a killing at the expense of local homeowners and property investors.

 

[ryan_mel]

Sunshine is one of my preferred investment suburbs

The median is 335k and there is opportunity to purchase below the median. You can find blocks up to 600-700m in size, the area is slowly being gentrified and it is one of the cheapest suburbs with in 15 kilometers of the CBD. It also has good transport, shopping, schools and other infrastructure.

Bad points? No beaches, no large infrastructure developments (that I know of)

Plus bad reputation, and some drugs stuff

 

[ryan_mel]

I grew up in Sunshine and currently have investment property there. Over recent years the area has experienced great capital gains and I've never had a rental vacancy for more than 2 weeks.

I think the big advantage for Sunshine is transportation. The Sunshine train station is located in zone 1 and the Western Ring Road provides ready access to the city (15-20 mins), Melbourne Airport (15-20 mins), Geelong road and Ballarat road.

I'm living in this suburb, it takes me 2 min to get the west-ring freeway, then another 15min to CBD if traffic is not jammed, but even it's, it takes about 35min, still not bad comparing to most east, south and south-east suburbs to go to city.

There is not a lot of vacant land in the area so I would expect that capital growth would continue to be good, as supply is limited. Areas like Hoppers Crossing and Werribee, whilst pleasant to live in, are surrounded by large areas of open land. True, some of this land is farmland, but it is farmland like this that the authorities rezone as residential land ten years down the track. The farmer makes a killing at the expense of local homeowners and property investors.

Unfortunately, in the other side of the west-ring of Sunshine West, there are plenty of new land in Deer Park, recently plenty of house+land packages are under development, but still be positive to Sunshine (w and n) area, coz it's established for quite long time, the CG shall be stable.