Thoughts about northern suburbs in Victoria?

Hi everyone,

This is my first post, so apologies if this has been asked before.

I'm looking to invest in a new townhouse, with a budget between $450-$500K, and am considering the northern suburbs. It seems like I need to travel at least 15kms before I can find something within that price range.

Do any of you have thoughts about Reservoir, Fawkner, Glenroy? I hear they are rough areas but going through a phase of gentrification.

This ad caught my attention:
http://melbourne.gumtree.com.au/c-U...ownhouse-less-than-500-000-W0QQAdIdZ265692742

Any thoughts would be appreciated.
 
Their prices have already built in a 'gentrification' that may or may not happen. I know for certain that people with money don't want to live in those places - I think that explains it succinctly.
 
The northern suburbs of Victoria would be somewhere near the NSW border, no? But as for the northern suburbs of Melbourne...

Gentrification has become one of the most overused terms. I've heard it used to describe just about every suburb in Melbourne. Every single suburb experienced a boom and with booms come renovations and redevelopments (of particularly iffy quality in medium to below medium suburbs). Renovations and a few new builds aside, most suburbs are the same as they were before the boom, just more expensive. The term 'gentrification' is used to justify the higher prices. As rents have not kept pace with house prices, the pool of tenants aren't magically 'gentrified'. As a landlord, you're paying for a post-boom property only to rent to pre-boom tenants.

In my opinion, the suburbs you mentioned haven't improved since the boom. As we're talking about a fairly large area, I can't speak for every pocket. Some Europhiles and Islamophobes would claim the region has actually deteriorated. If you're worried about the region being 'rough', you should probably spend a day or two sightseeing and draw your own conclusions.

Personally, I'd prefer an older house to a new townhouse. New builds only stay shiny for so long, and there will always be newer shinier townhouses to compete with. Houses have more potential for improvement. Just a personal preference.
 
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