We need some Melbourne talk.....

[oc1]

in 2001 it was widely known that within 16 years of inner city Bendigo land was going to be very scarce, and within 20 years outer suburbs land would also start to diminish...

Same here in the La Trobe Valley. At the current rate, land for residential blocks will finish in less than 4 years. Its forcing prices up. As soon as another stage of blocks come up its gone in a flash. Slowly but surely it is increasing house prices too. Heaps of money being spent by both the private and public sectors. Thousands of jobs will be created within the next few years and population is increasing.

There is heaps more going on in other Gippsland areas...GROWTH GROWTH GROUTH. I've stopped buying in Melbourne and heavily investing here.

Cheers

Oscar

 

[leicachamp]

What do you guys think of suburbs such as Footscray West, Braybrook, Sunshine, Maidstone? Houses can still be found at around 220k mark. So close to the CBD and so cheap, even with the huge CGs that these suburbs have achieved since 2000. The market has been flat in these areas in the past 2 years with many bargins floating around prior to July.

In the east you probably have to go all the way out to Noble Park or Dandenong to get houses this cheap.

 

[Peter Parker]

What do you guys think of suburbs such as Footscray West, Braybrook, Sunshine, Maidstone? Houses can still be found at around 220k mark. So close to the CBD and so cheap, even with the huge CGs that these suburbs have achieved since 2000. The market has been flat in these areas in the past 2 years with many bargins floating around prior to July.

You would be doing exceptionally well to get a $220k house at Footscray West - prices there are about $50k more than over the road in Braybrook.

Braybrook is about the lowest socio-economic suburb in Melbourne and Maidstone is not much better. In the long term I think it will do well, but it is a suburb that most mainstream buyers will say 'no way'. Braybrook, Sunshine & St Albans are percieved as worst for drugs and youth gangs so there is a massive stigma to overcome. This was brought home to me recently when I attended a forum on Law and Order at which Les Twentyman was present. He mentioned he was assaulted in Sunshine that day. The 'drugs clean up' in Footscray may push the problem further out and Sunshine/Braybrook are in the firing line.

Braybrook has a lot of new housing development that is rapidly transforming parts of the suburb. There are also new shopping centres, which unashamedly cater for downmarket tastes.

But to understand Braybrook properly, it would seem desirable to understand the preferences of the main market who are likely to come in and push prices up. In this case it could well be upwardly mobile Vietnamese such as those who inhabit the new McMansions by the river behind Ballarat Rd.

Peter

 

[JIT]

In the inner west I woudn´t go further out than Kensington, Footscray, Seddon, Yarraville, skip Spottsville!, maybe Newport? (or Newtown, I forget?), and Williamstown, any other suburbs further out (though this is only about 7km from the CBD) and I think finding quality investments are much tougher, from a medium-term perspective, largely because of the nature of the suburbs as Peter mentions, and surrounding industrialised areas, as opposed to the types of properties present.

GSJ

 

[leicachamp]

So where would you guys recommend to buy at around 250k that is in more desireable than the inner west? In the nNorth there is Heidelberg Heights, which itself may be no better socially than suburbs like Braybook. In the East can you still pick up houses for the 250k mark?

 

[DavidMc]

With $250k, I would get a good 1 bedroom unit in the inner east/sth eastern suburbs (south yarra - prahran - toorak - hawthorn - malvern - st kilda etc). That's not just jibber jabber either, I'm actually buying one right now.

 

[leicachamp]

What made me look at suburbs like Braybrook and Sunshine is that they have relatively large blocks that can be subdivided and develop further down the track. In fact prior to July you could pick up a few props that already had planning approved at the same price as props with no plans. Alas these deals seem to have all but dissappeared.

 

[JIT]

At 250K I think you probably need to be looking at good apartments in good suburbs, not houses/townhouses. As DavidMC says, 1 bedrooms at this price level (old or new), and yep, the inner east/south east I agree are a good option for this.

If you do want to subdivide/develop, then, at this price, you are not going to find many houses in quality suburbs. But, if you think you can generate a profit from this strategy, then that´s your call. It will be more a process of actively creating the capital growth/equity. A passive strategy here I think will be unlikely to achieve much CG/equity for a long time.

GSJ

 

[emu]

With $250k, I would get a good 1 bedroom unit in the inner east/sth eastern suburbs (south yarra - prahran - toorak - hawthorn - malvern - st kilda etc). That's not just jibber jabber either, I'm actually buying one right now.

Ditto.....i have just engaged a buyers agent to find me a 2 brm unit in the above area..............well see what they come up with?

 

[peteb]

Emu which buyers agent did you go with ?

 

[emu]

Peteb i decided to go with the wakelin group after sitting down with James, Metropole and Wakelin.

All agents were extremely professional and had a similar selection criterier for IP's, but in MYopinion james advocates locate more PPOR's than IP's so one week they are looking for someones dream home and then every so often their looking at IP's............I wan't a fulltime IP buyers agent.

Metropole was great but because they had just finished their roadshow around OZ and were employing more buyers agents to handle the increase in business........challenging times, inexperience, too many clients and internal competition?........ maybe, maybe not......this was enough to swing me towards wakelin.

I was more concerned about who the individual agent was and whether he/she had the experience and knowledge that i was willing to pay for.

 

[DavidMc]

I also engaged the Wakelins, after evaulating the same agents you had. Hopefully the waiting list isn't too long

 

[toony]

Why a buyers agent?

Why a buyers agent? How hard can it be to look in realestate.com.au for a 2 bed unit.

Drive by and have a look at the condition and location.

 

[emu]

Toony do you belive that once you have done something once or twice you will be able to consistantly acheive the same result over and over again and not become any better at it.

A buyers agent only needs to be 3% better than yourself to justify the cost and to improve your chances of success.

I also live 250km out of melb and don't have the time.

Cheers
Ken

 

[Bandita]

What do you guys think of suburbs such as Footscray West. Houses can still be found at around 220k mark.

Where?!? I've been watching this market like a hawk! If you really can find this price in Footscray West, I would be purchasing it over suburbs like Sunshine, Maidstone, Braybrook - renovated properties go for almost 400k! They have a better name, better transport, better shops, and their train line isn't as dodgy. Took a train to Sunshine last week to meet some friends for dinner and felt so unsafe that we took a cab home.

At the same time, we live in Yarraville, and would take a train to and from there at any time of night....personally I prefer Footscray over West Footscray (although Yarraville or Seddon if we could afford it) because of everything great going on there. Plus, we love to go eat at the local Vietnamese restaurants there, and slowly but surely, we are finding that we are not the only "white folks" in the shops anymore! I think the suburb might be changing for the better - then again, what do I know?

Cheers,
Jen

 

[Peter Parker]

Where?!? I've been watching this market like a hawk! If you really can find this price in Footscray West, I would be purchasing it over suburbs like Sunshine, Maidstone, Braybrook - renovated properties go for almost 400k!

Agreed.

They have a better name, better transport, better shops, and their train line isn't as dodgy.

I only partially agree. West Footscray and Braybrook (Tottenham Station) are on the same rail line as Sunshine and St Albans. Unlike Sunshine, the stations are unstaffed and a fair hike from much of the suburbs they serve.

Hence unlike the better parts of Yarraville, most of Braybrook and West Footscray are not convenient to train and only have buses.

Balanced against this is the extraordinary building development in the ex-industrial parts of Braybrook - whereas West Footscray is done-up houses, Braybrook is 'knock 'em down and start again' country.

Peter

 

[leicachamp]

Thanks for your feedback guys. I think I concentrate on Footscray and find something unrenovated.

I think I was too focused on the fact that Braybrook,Sunshine was so close to the City and forgot that they are still an undesireable place for most people to live.

I have been lucky in thepast in that I purchased most of my props in the area prior to 2002 thus I am sitting on a nice capital gain. The past 2 years have been flat and thus I have been dipping into the capital to keep servicing it.

Good news is that it looks like we are getting the filtering affect of the growth in the east. Sales and prices have definately picked up in the past 3 months.

BTW. What do you guys think of Northern Suburbs like Northcote and Preston?

 

[ozi]

Thanks for your feedback guys. I think I concentrate on Footscray and find something unrenovated.

Be prepared to pay a premium for such properties. It seems as though this is what everyone else is also looking for. Many first home buyers are pushing prices up in the area and it really is difficult finding something below market value. I guess it comes down to what you are after and willing to pay. Footscray has been hot for quite some time now, houses are selling quickly.

Regards,
Ozi

 

[DavidMc]

Why a buyers agent? How hard can it be to look in realestate.com.au for a 2 bed unit.

Drive by and have a look at the condition and location.

It's very easy to buy *any* 2 bedroom unit. Buying one that will deliver me the best capital growth takes a lot more effort and time.

Things like:

- Sacrific every warm Saturday for the next 3 months getting an idea for the value of these areas (and I'd still miss any potential good deals).
- Negotiating directly with some of the best and highest paid real estate agents in the country.
- Beating all the other buyers agents and owner occupiers swarming these areas.
- Most probably having to bid at auction (something I haven't done before and don't feel comfortable doing).

 

[leicachamp]

I spoke to a few Real Estate agents about Buyers Advocates. They dont have a high regard for them. A few of them said they love buyers advocates because they have a vested interested to get the sales through. They did not think that a buyers agents find better properties or get them for "Bargain" prices. " It is a myth that buyers agents get bargains "What they do provide is insurance you dont end up with a lemon. They told me it was better if I spend a few weeks in the area rather than use a buyers agent.

The Agents I spoke to was in the Oakleigh area.

Please note. This is not my opinion. I have not used a buyers agent before, but was contemplating it when I was looking in the east.

I did speak to Wakelin about a year ago. I was shocked to find that he suggested I sell all my 12 properties (at the time ) in the West and North and buy 2-3 props in the East. He did not even suggest I keep the existing houses and use the equity to purchase future props in the east. Little to say that i did not take his advice.