sunshine vic?

[Altonz]

Hi 1st time post, but we have been on somersoft reading other people's posts for the last couple of months.

Decided to ask experienced investors out there what they think of units in sunshine Vic. Seems like there is a lot on Sale at the moment and there are also some under 200k with a good rental return.

What are your thoughts?

 

[Peter Parker]

Hi 1st time post, but we have been on somersoft reading other people's posts for the last couple of months.

Decided to ask experienced investors out there what they think of units in sunshine Vic. Seems like there is a lot on Sale at the moment and there are also some under 200k with a good rental return.

What are your thoughts?

The area around Anderson Rd is currently a mess with the rail construction work and grade seperations.

It's the nearest thing Melbourne has to a Detroit-style ghetto. Rubbish and graffiti adorn many apartment blocks, nothing is ever cleaned and there's even some burnt out houses.

Although there's some nice early 1900s houses in the area as well. There is no cheaper place to buy a unit within 15km to the CBD. However there is no scarcity value since many units are all the same.

Maybe its handy location will make it do well long term but there is a great deal of stigma to be overcome first. Other pockets of Sunshine (with fewer units) may be better.

 

[yellina]

Hi 1st time post, but we have been on somersoft reading other people's posts for the last couple of months.

Decided to ask experienced investors out there what they think of units in sunshine Vic. Seems like there is a lot on Sale at the moment and there are also some under 200k with a good rental return.

What are your thoughts?

Dear Altonz,

It is very interesting post. In 2008, I was to an Auction to buy a house in Sunshine. Asking price was 240K (4bedroom). After reading some reports on Sunshine, We decide not to Invest and we bought 2 properties in Hoppers for little bit less price.

Now the same house is selling for 495 K. Hoppers is around 300K. I wish I would have purchased in Sunshine,

Sunshine is very close to city. It is in your price range. Please do buy it. Still it is in Melbourne. If the area doesn't suit you. You can rent it out.

Lot of Investment is happening around that are.

Some of the properties I purchased in west are the best performing for me.

Thank you
Hari.

 

[TMNT]

Dear Altonz,

It is very interesting post. In 2008, I was to an Auction to buy a house in Sunshine. Asking price was 240K (4bedroom). After reading some reports on Sunshine, We decide not to Invest and we bought 2 properties in Hoppers for little bit less price.

Now the same house is selling for 495 K. Hoppers is around 300K. I wish I would have purchased in Sunshine,

Sunshine is very close to city. It is in your price range. Please do buy it. Still it is in Melbourne. If the area doesn't suit you. You can rent it out.

Lot of Investment is happening around that are.

Some of the properties I purchased in west are the best performing for me.

Thank you
Hari.

that was your mistake if you are comparing those two, hoppers is also low socio economic but with heaps of land avaialbe and/or its surrounds, sunshine has none or barely any, and is further out

 

[yellina]

that was your mistake if you are comparing those two, hoppers is also low socio economic but with heaps of land avaialbe and/or its surrounds, sunshine has none or barely any, and is further out

I was very Inexperienced in that time. After realizing that, We bought in West footscray, It has given us fantastic capital growth and the rents are excellent.

After reading the forums from the smart people, We are buying close to the city. And we are very happy.

Thank you
Hari.

 

[TMNT]

I was very Inexperienced in that time. After realizing that, We bought in West footscray, It has given us fantastic capital growth and the rents are excellent.

After reading the forums from the smart people, We are buying close to the city. And we are very happy.

Thank you
Hari.

thats all hindsight, we all have "hindsight" moments

I would have thought 2 x dwelling in hoppers isnt a bad investment at all

 

[grand dad]

It is very interesting post. In 2008, I was to an Auction to buy a house in Sunshine. Asking price was 240K (4bedroom). After reading some reports on Sunshine, We decide not to Invest .

You missed the boat on Sunshine. Its risen a lot and future gains may be limited.

You need to work on other suburbs that have potential. The "lets buy inner Melbourne" theory is inherently flawed because prices have already risen a great deal. Of course there may be exceptions but these are increasingly few and far between.

According to the Valuer General, only 2% of Melb houses sit on subdivisible land. Maybe this is a strategy you may want to consider? In much maligned Bayside suburbs like Frankston, you can buy perfectly good houses on redevelopable land for giveaway prices - as low as $300,000. Buy, rent out, then in a few years either develop yourself or sell to a developer. Definitely something to think about.

 

[Spades]

No need to promote frangers again grand dad,it will promote itself.

Stick to the topic Sunshine

Cheers Spades.

 

[Tom_84]

I too am looking into sunshine at the moment, and in particular sunshine west and Albion as I feel these areas are a little more affordable than sunshine itself. There are older houses on big blocks of land in these areas for low to mid 300's. Now I know the area has a rep however there is a lot of development going on around sunshine and only being 15kms from the city, I think it's a pretty decent investment

 

[grand dad]

When I worked as a valuer for a number of banks, I did a few valuations in Sunshine. Always felt that it had good potential. Back in the 80s, you could take your pick and buy the best of the best for less than $60,000.

If anyone wants to post links of good value situations in sunshine or surrounds, I'd be very interested.

Sunshine is a multicultural place. That's a positive in my book as ethnic people tend to prefer buying property to renting - which only leads to price rises as we have seen post 2008.

 

[The Y-man]

that was your mistake if you are comparing those two, hoppers is also low socio economic but with heaps of land avaialbe and/or its surrounds, sunshine has none or barely any, and is further out

Sunshine is only 12km out of the CBD, Hoppers is 25km?

The Y-man

 

[TMNT]

Sunshine is only 12km out of the CBD, Hoppers is 25km?

The Y-man

oops, wrong way around

 

[Altonz]

Thanks everyone

We did look at the option of frankston but we also read somewhere on somersoft that it is not easy to find tenants. Moving into frankston is not an option for us due to work and school etc.

How about albury and wodonga vs frankston and sunshine?
We are looking to invest approx 250k. In frankston i think this amount is not enough to get a house on a decent sized land in a good condition.

I agree that prices are not cheap in sunshine anymore so we are limited to units at the moment if we choose to buy in sunshine.


Hari, would you invest in units in sunshine or just houses?

 

[yellina]

Thanks everyone
Hari, would you invest in units in sunshine or just houses?

Altonz,

This is a very nice question you have asked. I have been a Investor for so many years. I have invested in CBD, Middle Ring, 23 Km away from city, Country Side, Commercial properties and Overseas. Invested in Houses, Apartments, Offices.

Country Side Investment in Shepparton and Mooroopna. It was very important to mention the location as to compare all Properties.

In the beginning, I used to look at buying the properties which are cheap and fall in my mental price range. After reading many magazines and talk to real successful people, I have started to look at the Middle rings and City.

Country Side Investments Advantages.

1) Cheap to buy thats all.

Country Side Investments Disadvantages

1) Rents dont increase as much
2) No capital growth. Banks give you very low Valuation. Cant leverage on them.
3) We would think they are growing in prices. But Valuation time. They are not good. Stuck in 1990's.
4) Agents fees are around 7 - 10 %
5) Water Bills are same or more than city property. even it is 100K property in country or 500 K property in the city. You are paying Drainage and sewage charges almost the same. Very high in Country side.
6) Council rates are very high. Councils need to collect more money because too less properties there.
7) Taking expenses into consideration with the less rent you get, in my view you loose all the benefits.
8) Due to less tradies, Price can be little high. for repairs.
9) House grown on par with Construction costs - Depreciation.

Investing in City Properties.

1) All the house close to city has grown more in Value even in recession or bad times.
2) Banks Valuations are close to our expectations
3) Leverage is more.
4) Rents are increased consistently
5) Water rates doesn't seem much for the rent collected.
6) Council rates are on par with the Country side property, even though the price is 3 times the country side property.
7) Over all the expenses do not seem much compared to rent we collect.
8) Real estate charges are around 4% (some pay 5%).
9) Renting is easy
10) Trade people charges are quite competitive.

If I know what I know 7 Years ago. Rather have one Foot of land in Middle of City than 10 acres in Country. Sometimes it is not about just land and a house anymore. Now are entering into new era of city life.

Small example, Melbourne CBD in 1987 has 7,000 population. Now it is 100,000. Melbourne is not a doughnut in the nights anymore.

All Australian Capital Cities are moving towards, London, New York model.

Its is not what you buy, Where you buy. Recently we bought a apartment in the City, We are getting rent of $3200. Signed for 2.5 years. It is positive cash flow even the interest rate goes upto 7%.

If it was me Altnoz, I would rather buy a Unit in the Sunshine rather than house in country side.

Please post me any questions you may have.

Thank you
Hari Yellina

 

[S.T]

So uh, your advice Hari is to buy CBD apartments in Melbourne right now?!

 

[yellina]

So uh, your advice Hari is to buy CBD apartments in Melbourne right now?!

Simtr,

I have explained whats went good with my Investment Properties. I dont sell any properties. Some people can have bad experiences with CBD, But I had a good experience with City and inner suburbs. I bought 3 year old property.

If I had enough Deposit now, I will buy a unit or house in Albert Park. Thats my next IP for 2014.

Thank you
Hari Yellina.

 

[Redwood]

When I worked as a valuer for a number of banks, I did a few valuations in Sunshine. Always felt that it had good potential. Back in the 80s, you could take your pick and buy the best of the best for less than $60,000.

If anyone wants to post links of good value situations in sunshine or surrounds, I'd be very interested.

Sunshine is a multicultural place. That's a positive in my book as ethnic people tend to prefer buying property to renting - which only leads to price rises as we have seen post 2008.

G'day Grand dad, when I look at Sunshine in the West I think of Noble Park, plenty of similarities in terms of capital growth over the last 10-15 years and rental yield....however, the difference is Sunshine is as close to the city as Box Hill....thats its advantage. Still done well and continue to do well in Noble Park......From a rental yield, multi-culturalism does come into play with many 'gov't supported' rental yields, which means more repairs from my experience.

 

[S.T]

Simtr,

I have explained whats went good with my Investment Properties. I dont sell any properties. Some people can have bad experiences with CBD, But I had a good experience with City and inner suburbs. I bought 3 year old property.

If I had enough Deposit now, I will buy a unit or house in Albert Park. Thats my next IP for 2014.

Thank you
Hari Yellina.

The poster is asking about sunshine, not cbd apartments, why do you post such crap?

 

[oc1]

The poster is asking about sunshine, not cbd apartments, why do you post such crap?

Unfortunately it's not just limited to this thread.

 

[RetireRich101]

Oscar,

Whittlesea(Thomastown, Lalor) Vs Brimbank(Sunshine, Albion)

For a 600-700m2 block, keep the front, build 1-2 units at the back.
Build now or keep 1-2 years then build

Which of those council/suburbs would you prefer to build? Which one would achieve higher returns would you say?