Hi guys,

I am new to this forum so apologies in advance if I have posted in the wrong place.

Basically, I am looking at purchasing an investment property and have been getting help from a property investment company in Melbourne.

I am looking at buying in Craigieburn in Victoria. I have the option of two properties, the first one is a townhouse 2 bedroom, 1 bathroom and 1 powder room, 3 levels, in a block with about 15 other townhouses. It is at the centre of the estate, close to a lake and a childrens playground.

The second is a 3 bedroom house 1sq bigger in size, single story, 2 bathrooms, further into the estate, but close to a big oval/park, a general store, and primary school.

Both properties are the same price.

I am very confused. Any suggestions or recommendations would be really appreciated.

Thankyou very much in advance!

Stephanie
 
What are the numbers, though? How much for each property? I daresay a 3-level townhouse in Cragieburn sounds like a massive overcapitalisation. In an inner-city area like Richmond/South Yarra etc it would be perfect.
 
$340,000 each. they both cost exactly the same. The townhouse was recommended by the property investor and so when I looked at the estate I found that I could bvuy the house and land turn key exactly the same price.
 
Well the property investor said with the townhouse I can expect to get $320 - $340 so when I looked up houses on domain I am assuming I can expect $360 - $380
 
I guess it wuld be more of a question of which one would grown better? I always thought that land was worth more.. but is there more of a demand for a townhouse? I am not sure..
 
What is your budget - the $350,000? If it is an investment property you can probably stretch that budget if it is something you are comfortable with. Personally I don't like the area for investment as it tends to attract the first home buyers who are having it tough right now.
 
if you are buying from a property investment company, I can guarantee you that you arent going to get more rent for it than they say you are going to.

I would seriously check the values on these places, i dont know about melbourne, but up here in SE QLD, new townhouses are sold by investment companies to novices and its not a pretty picture.........

A house will generally have better capital growth, and townhouses a better return. Which is more important to you?
 
Well the budget can be stretched out to $440,000.

Originally I signed a contract to build a 4 bedroom in North Epping for $440,000 with a settlement date of September this year. The settlement date has been blown out to June next year, with the likelihood of the home being completed in January 2014.

This is the reason why the property investor is suggesting we purchase this Craigiburn property instead. He is suggesting we transfer the contract.
 
Wow $440,000 for a house in Epping North....

The people who are buying in these areas are First Home Buyers and overseas investors who are not allowed to buy established properties. Some are paying $500,000 for a H&L Package in Mernda! You might as well go buy an older house in Ringwood etc for around that price - you will most likely get better growth out of it.
 
Jtkumnick I am a Novice. I am 25 and this is my second investment so I am confused. My first investment was a unit in Chelsea.

It's basically a 10-12 year buy sell strategy.
 
Last edited:
Good question, I have no idea.

Is this mandatory for every build? will it be in my contract somewhere? Or is it something that I would have to specifically ask to be put in my contract?
 
if you are buying from a property investment company, I can guarantee you that you arent going to get more rent for it than they say you are going to.

I would seriously check the values on these places, i dont know about melbourne, but up here in SE QLD, new townhouses are sold by investment companies to novices and its not a pretty picture.........

A house will generally have better capital growth, and townhouses a better return. Which is more important to you?

Capital Growth most definitely.
 
House vs townhouse. Same thing. For the right price it'll work. Check your owners corp fees too.

More important to go for suburbs as Aaron says. A townhouse in a good suburb will be >>> than a mansion in a bad suburb.
 
Back
Top