The heat in Melbourne's Inner City Property Market continues.

[feihong]

Hi Index Fund,

Have you looked in the North? For a 3 bedroom house with yard at or under $260k - Have you looked at Roxburgh Park or Craigieburn? Plenty there in that price range, 20-25km from city, both have train stations.

You could probably pick up a villa in closer suburbs 12-15km from CBD- you might be able to pick up an unrenovated one in Pascoe Vale?

Other ones to look at - Epping, Glenroy, Oak Park.

Cheers,
Jen

Great minds think alike!

 

[JIT]

If you can afford 260k, as you say, then you can get a large 2 bed (possibly even 3 bed) un-renovated villa unit with a backyard, 12-14 km north of the CBD, and less than 15-20 minutes by car, train or tram: ie. in Reservoir.

Why aren't you looking here???

You can keep complaining about affordability, but you don't have much more time to get into this suburb, as it is starting to move - both in capital and rental value, with the ripple effect coming from a strongly performing market in Preston.

You're welcome...again .

Here's just a few examples in Reservoir:

(1) This one's actually relatively new, at $269500 negotiable, "VENDOR SAYS SELL"!:

http://www.realestate.com.au/cgi-bi...eader=&c=25753867&s=vic&snf=ras&tm=1197017537

(2) A house even at 240k+, 11km from the CBD. You never know, you could get it with a 'knockout bid' of 260k straight up!:

http://www.realestate.com.au/cgi-bi...eader=&c=25753867&s=vic&snf=ras&tm=1197017537

(3) Whoa, look at the yard on this one at 259k!:

http://www.realestate.com.au/cgi-bi...eader=&c=25753867&s=vic&snf=ras&tm=1197017537

(4) Look at this, 200k+, damn that's cheap!:

http://www.realestate.com.au/cgi-bi...eader=&c=25753867&s=vic&snf=ras&tm=1197017537

(5) And this one at 259k, right at your price level, with a decent courtyard!:

http://www.realestate.com.au/cgi-bi...eader=&c=25753867&s=vic&snf=ras&tm=1197017537

What do you think??

I don't think they're too bad for a first/starter home.

Some of them may even be OK investments.

JIT
Voluntary Bird Dog

 

[stumunro]

JIT
Voluntary Bird Dog.

You've outdone yourself! Way beyond the call of duty !

 

[BayView]

Nice try JIT

I think most FHB's look at your selection as either somewhere they would have to rent, or as a retiree's unit.

I think the FHB's have this as the starter home in mind these days:

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=77787146&s=vic&tm=1197047592

 

[JIT]

Nice try JIT

I think most FHB's look at your selection as either somewhere they would have to rent, or as a retiree's unit.

Oh well, just some suggestions.

Any FHB's here, what do you think...?

Given the proximity to the CBD, I think they are reasonable options. Some of them, at just 11km from the CBD, could be even classed as 'inner city properties'...

 

[Peter Parker]

Nice try JIT

I think most FHB's look at your selection as either somewhere they would have to rent, or as a retiree's unit.

You're probably right, and as a result they're missing out.

But all JIT's places are palaces compared to:

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006686441 ($125k)

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006859581 ($130k)

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006691545

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006591750 ($195k)

If I was a FHB, any of JIT's picks would have been suitable.

 

[JIT]

You're probably right, and as a result they're missing out.

But all JIT's places are palaces compared to:

The statistics (ABS) show that most FHB's (60%) are high income households. The rest, 40%, are low-middle income households, and would be the ones more likely to be affected by affordability issues.

At present, statistics show that the high income FHB's ARE still buying homes, but mostly they are medium-density properties, like townhouses/villas/apartments.

These buyers have changed their expectations (eg. of getting a house with a large backyard) in order to get into the market.

As the examples showed in the last few posts, there's still plenty of opportunities for low-middle income FHB's to enter the market...but like their higher income counter-parts - they just need to change their expectations!

Work within the reality of the current market and your circumstances, rather than shouting about how things should be or could have been and what you think you deserve or is owed to you.

Looking at northern and western suburbs (in Melbourne) offer cheaper entry level prices with the benefit of proximity to the CBD. Also, a larger diversity of properties to choose from, ie. houses through to apartments.

I'm sure there's a very low-income FHB out there who's just wrapped that they have bought their first home, eg. a small 1 bed apartment in the middle western suburbs of Melbourne...

The rest continue to complain and whinge about how difficult things are for them and how lucky everyone else is for buying 2-3 years earlier...

Give me a break .

 

[BayView]

Oh well, just some suggestions.

Any FHB's here, what do you think...?

Given the proximity to the CBD, I think they are reasonable options. Some of them, at just 11km from the CBD, could be even classed as 'inner city properties'...

Sorry JIT;
wasn't having a go at you; just pointing out the expectations of some of the FHB's.

Of course; to you and I, those properties would seem like dollars in our pocket down the track; not a poor compromise for a McMansion in the new estate on the handkerchief sized block.

 

[JIT]

Sorry JIT;
wasn't having a go at you; just pointing out the expectations of some of the FHB's.

No I understand that!

Let's see what the FHB's here, eg. IndexFund, have to say...

 

[IndexFund]

Hi guys,

Thanks for looking into some possible options for me!

I would rather a home for my first purchase though, however I will consider reaosnably sized units esp with a good sized yard.

I was at Hillside and saw a nice house there, they are wanting 250-260 K for it. It has a large yard (can build a unit there) and has 3 bedrooms. The only thing is the back yard faces the main road which isnt too bad but may need to raise the fences as I have a cat, also to block out any possible sound polution.

Its just interesting to see, what will go up higher, a house in Hillside/Sydenham or a unit in Reservoir?

 

[alexlee]

IF, have you thought of continuing to rent while buying investment properties?
Alex

 

[MTR]

Hi Jason
Thanks for this great thread, I would still be interested in knowing whether the inner city market in your opinion is still hot.

Since purchasing in May I have experienced a 20% increase for my period home in Coburg.

I recently contacted local agents for Brunswick/Coburg. I was told that the market is starting to slow down in these areas, however certain properties were still selling well, ie period homes in good location.

I am in Perth and will be visiting Melb next year love Melb, can't wait.

Thanks to you all for providing such an interesting/informative posts and please keep providing information on this market.

Cheers, MTR

 

[jingo]

Melbourne Market Update - 9 December

Hi Jason
Thanks for this great thread, I would still be interested in knowing whether the inner city market in your opinion is still hot.

Since purchasing in May I have experienced a 20% increase for my period home in Coburg.

I recently contacted local agents for Brunswick/Coburg. I was told that the market is starting to slow down in these areas, however certain properties were still selling well, ie period homes in good location.

I am in Perth and will be visiting Melb next year love Melb, can't wait.

Thanks to you all for providing such an interesting/informative posts and please keep providing information on this market.

Cheers, MTR

Hi MTR,

The official clearance rate this weekend was 78% with 1123 properties being auctioned. Enzo Raimodo (The Real Estate institute of Victoria Chief Excutive) said that the number of auctions held on Saturday were near the highest in the past five years - confirming the heat still in the market.

North Balwyn is performing strongly. A renovated and extended 1950's house at 37 Nicholson Street sold for $1,625,000 against a reserve price of $1,300,000.

http://www.realestate.com.au/cgi-bi...&header=&c=434295&s=vic&snf=ras&tm=1197183355

This property would have sold for $500,000 four years ago (unrenovated).

60 percent of properties in the inner eastern suburbs were selling for more than $1 million compared with a year ago, when the figure was about 20%.

This three-bedroom, semi-detached house at 50 Glenhuntly Rd, Elwood, sold for $752,000 and was contested by 6 bidders. The same property sold a year ago for around $500,000!

http://www.realestate.com.au/cgi-bi...eader=&c=45657241&s=vic&snf=ras&tm=1197183511

A three-bedroom house at 57 Henry Street, Northcote, sold for $810,000 under competition from four bidders after going on the market at $730,000!

http://www.realestate.com.au/cgi-bi...header=&c=5105423&s=vic&snf=ras&tm=1197183644

In Coburg, a 4 bedroom weatherboard home at 31 Phillips Street on land of 388sqm was sold by Barry Plant for $700,000.

http://www.realestate.com.au/cgi-bi...eader=&c=20783534&s=vic&snf=ras&tm=1197183753

Two bedroom flats in Nth Melbourne continue to be popular. A 2 bedroom flat with a carport at 1/3 Haimes Sreet was sold for $387,000 by WB Simpson & Son. Last year it would have been possible to purchase this for around $270,000. (No photo available).

On 22 December this flat is going to auction:

http://www.realestate.com.au/cgi-bi...eader=&c=11014539&s=vic&snf=ras&tm=1197182125

It is listed as $340,000+, so it will be interesting to see what it achieves.

This 3 bedroom town house at 111 Lothian street, North Melbourne is in a mixed zone, and still achieved a result of $573,500.

http://www.realestate.com.au/cgi-bi...4539&cc=AUSTRALIA&s=vic&snf=ras&tm=1197182125

* Information gained from The Sunday Herald Sun, 9 December 2007.

 

[MTR]

Hi Jason
thanks for the update.
Coburg property sold very well considering the size of land component, very nice reno though.

Cheers, MTR

 

[IndexFund]

IF, have you thought of continuing to rent while buying investment properties?
Alex

Well I want to get my first home buyers grant. So i cant rent and not live in the new house...

 

[stumunro]

you don't have to use your FHOG now, youcan save it for your PPOR when suitable, even if it's not your first purchase. Although many people tend to be of the belief that it won't be around forever so using it while you can may be a better option? Some people believe the FHOG will go up! who knows.

 

[vuster]

Well I want to get my first home buyers grant. So i cant rent and not live in the new house...

Hi IndexFund,

I believe that in order for you to get the first home buyers grant you just need to live in the house for 6 months during the first year.

 

[asdf]

This three-bedroom, semi-detached house at 50 Glenhuntly Rd, Elwood, sold for $752,000 and was contested by 6 bidders. The same property sold a year ago for around $500,000!

Thanks for the update Jingo. Still pinching myself...hard!

Analysis paralysis.... the great wealth destroyer.

 

[pi2012]

Interesting Article:
How to spot a great holiday deal in Melbourne
http://www.domain.com.au/Public/Article.aspx?id=1197135519355&index=NationalIndex&headline=How%20to%20spot%20a%20great%20holiday%20deal%20in%20Melbourne

 

[pricey]

whats going on in st kilda?

Anyone got any stats on st kilda apparments and how they are going...especially the top end apparments?