Werribee, why has it done so badly these past few years?

[Propertunity]

Obviously the doubling of the first home owners grant is driving it,

That is a factor - yes. BUT it is only one of many factors.

and Werribee prices may drop again when the grant goes back to normal.

Probably not...........no definitley not, definitely not. (Dustin Hoffman in Rainman)

Has any one else noticed the jump?

Everybody that has been to an auction in the last couple of months - except the D&G brigade of course

I'm thinking do we sell it now and cash in on the madness, or do we hold, we have good tenants.

What was your strategy going into the purchase in the first place? You have purchased at a good price, you have seen some CG and you have good tenants........and now you are thinking of selling? and doing what with the money?

 

[sash]

I would hold onto it.....I think that Werribee and Hoppers Crossing is just being discovered!

I bought my houses there in 2006 for 130k and 170k respectively. They are now 210k and 250K respectively.

So I am a bit confused when people say there is no CG in Werribee. Also the rents have moved from 165pw and 180pw to 220pw and 230pw respectively!

I believe that more CG growth is to happen ....particularly when the rail and marina infrastructure commences.

Hi, we bought a house on Greaves street nth in Werribee just over 2yrs ago, paid $219,000, corner block, on the river side,There is a house on Greaves street nth listed with the same agent, otherside of the road, so not river side, slightly smaller block than ours, and not nearly as nice a house being sold with the same agent that we bought through, they are asking for between $285,000-$310,000. Then out of the blue I had an real estate agent who we had made an enquiry with when we were originally looking to buy in the Werribee/Hoppers Crossing area, ring and ask if we had bought in the area, and if we wanted a free appraisal done. Obviously the doubling of the first home owners grant is driving it, and Werribee prices may drop again when the grant goes back to normal. Has any one else noticed the jump? they probably wont get what they are asking for anyway, who knows, I'm thinking do we sell it now and cash in on the madness, or do we hold, we have good tenants.

 

[Harris]

I bought my houses there in 2006 for 130k and 170k respectively. They are now 210k and 250K respectively.

So I am a bit confused when people say there is no CG in Werribee. Also the rents have moved from 165pw and 180pw to 220pw and 230pw respectively!

.

I know why they say that.... Most of the people (excluding seasoned investors) look at the net gain in equity and make their judgements based on the numbers.

When median of Kew jumped almost $400,000 within one year it made massive news however when Werribee or Frankston improve by a similar % age, it does not get registered.

I have said that umpteen times that any melbourne outer suburb on a 7 or 10 year timeframe has never lagged behind any prestigious/ inner suburb. Whilst I have a diversified portfolio consisting of both, I still believe that outer suburbs with their better cash flow offer better chances of increasing the total portfolio value and equity under similar timeframe.

2007 was the year that saw massive improvement in inner melbourne and it became almost a myth here at SS and elsewhere that its only the inner belt that appreciates quicker and faster.

Overall for me in the last 7 years, my regional portfolio has performed the best followed by outer metro and last comes inner melb blue chip portfolio.

Harris

 

[DavidMc]

What regionals do you own Harris?

Coming to the MIG dinner tonight?

 

[sash]

Well said....it is quite funny when I point this out to some of the blue chip people out there....but there is still disbelief!

For example on the 130k Werribee property even with 15K in costs for renos, stamp duty and mortgage insurance...I am ahead by about 50% in 3 years.

On the Hoppers X place I am head by about 41% in 3 years!

Similar story for my Melton South property ahead by about 27% in 2 years!

...and to top it off I have coughed up very little in extra short-fall in cash due to interest rates and rent increases.

Can the blue chip people who purchases 600k homes which jumped to 900k and then dropped back down to 750k say the same thing with their 3-4% yields?

I know why they say that.... Most of the people (excluding seasoned investors) look at the net gain in equity and make their judgements based on the numbers.

When median of Kew jumped almost $400,000 within one year it made massive news however when Werribee or Frankston improve by a similar % age, it does not get registered.

I have said that umpteen times that any melbourne outer suburb on a 7 or 10 year timeframe has never lagged behind any prestigious/ inner suburb. Whilst I have a diversified portfolio consisting of both, I still believe that outer suburbs with their better cash flow offer better chances of increasing the total portfolio value and equity under similar timeframe.

Overall for me in the last 7 years, my regional portfolio has performed the best followed by outer metro and last comes inner melb blue chip portfolio.

Harris

 

[Harris]

What regionals do you own Harris?

Coming to the MIG dinner tonight?

Hervey bay, Rockhampton, Cairns etc

Rocky & Cairns have delivered over 230% growth in about 6 years.

Dinner sounds interesting... i will see if I can make it..

 

[The_Bludger]

I would have thought that being so close to Melbourne we would have seen more people driving up prices in the area?

They don't call it "Werribee sh*t farm" for nothing.

 

[JamesGG]

I was reading the REIV's EA magazine this morning. Apparently postcode 3030, including Werribee, Derrimut & Point Cook, is recording the highest number of FHOG applications in Victoria. 3029; being Hopper's Crossing, Tarneit & Truganina, has seen the second highest volume.

 

[DavidMc]

Hervey bay, Rockhampton, Cairns etc

Rocky & Cairns have delivered over 230% growth in about 6 years.

Dinner sounds interesting... i will see if I can make it..

Great stuff! I need to diversify across states thanks to land tax...

How did you get onto Rocky and Carins? Was that off the back of a purchased report (Residex, Hotspotting?).

 

[investwest]

I have a strange strategy, but it seems to work for us-

That is a factor - yes. BUT it is only one of many factors.

Probably not...........no definitley not, definitely not. (Dustin Hoffman in Rainman)

Everybody that has been to an auction in the last couple of months - except the D&G brigade of course


What was your strategy going into the purchase in the first place? You have purchased at a good price, you have seen some CG and you have good tenants........and now you are thinking of selling? and doing what with the money?

I strategy is to purchase what we believe to be the best buy for under $230,000. We buy when nobody else is.I also look at the highest rental returns and at that time Werribee was good. Intuition also. We would probably buy in Melton next. If we were to sell we would put the money on our own mortgage, wait until the first home owner boost finished, and then look to buy in Melton, or Werribee again if we can get a bargain. But then again, my father always said never sell. Does any out there work on that theory, sell when you make a profit on one, then buy two in a cheaper upcoming area, then do the same when you make a profit, and just keep going?

 

[Harris]

Great stuff! I need to diversify across states thanks to land tax...

How did you get onto Rocky and Carins? Was that off the back of a purchased report (Residex, Hotspotting?).

Not really... That was earlier on in my property investment 'journey' and I just bought there because the 'cluey' people of SS back in 2002/03 were buying there.. and the yields were very very sweet.. 10% on average..

So was a no-brainer really... Would love to take the 'credit' for buying into those areas through some extra ordinary research and ferocious prop hunting but I didnt do any of that back then..

For Hervey Bay, I did a lot of research and probably went through 100 potential prop before settling on my acquisition there..

Harris

 

[sash]

Harris

That was pretty insightful...I know you bought in early but these areas have come off the peak. Buy your would still be up by 2-3 times the original purchase price.

How many did you get in Rocky, Cairns, and Hervey Bay. I had a friend who bought about 10 places in Rocky, Cairns, Townsville....he sold down to around 6. Pretty much has no debt.

Not really... That was earlier on in my property investment 'journey' and I just bought there because the 'cluey' people of SS back in 2002/03 were buying there.. and the yields were very very sweet.. 10% on average..

So was a no-brainer really... Would love to take the 'credit' for buying into those areas through some extra ordinary research and ferocious prop hunting but I didnt do any of that back then..

For Hervey Bay, I did a lot of research and probably went through 100 potential prop before settling on my acquisition there..

Harris

 

[Harris]

Harris

How many did you get in Rocky, Cairns, and Hervey Bay. I had a friend who bought about 10 places in Rocky, Cairns, Townsville....he sold down to around 6. Pretty much has no debt.

Not enough..

But unlike your friend, I have a mountain of debt... Refinanced some of those to increase my portfolio. However the market did come off the boil there almost 2 years ago.... Havent looked again to gauge the market status there in the last few years so not sure what it is currently doing.

Harris

 

[investwest]

Did anyone watch chanel seven last night?

So I've been looking at Werribee as an investment prospective, but growth has been almost non existant since 2004, 2008 did ok at 9% but what's happening there?

I would have thought that being so close to Melbourne we would have seen more people driving up prices in the area?

Chanel seven, is it Today Tonight or a Current affair. They predicted to suburbs in each state as having the "x factor". My husband said watch it and see what they say, and I said its only going to be the obvious, probably Preston and Richmond! For Melbourne Preston was one, but the other was Werribee!!!!! It will be interesting to see what happens down there now.
Go Werribee! my nay saying friends can laugh now.

 

[sash]

Werribee & surrounds - hot market

Well...it think Werribee and surrounds have been discovered.

I was talking to the agents I bought my Werribee and Hoppers Crossing properties. They both told be anything in the lower prices in reasonable condition is selling in a matter of days if it is priced to the market.

You used to be able to buy in Werribee for 140-160k....these days are gone! I looked up places for under 200k ...and only one under this market exists others are under contract or unconditional!

I called other agents in regards to buying more there ....but I think I will give it a miss...too much competition and too many silly FHOG buyers flush with money.

Even the new stuff is walking out the door......apparently demand is coming from overseas people, immigrants, FHOB, and investors....

Oh...time to go and find the next Werribee....

 

[THEHEATH]

You used to be able to buy in Werribee for 140-160k....these days are gone! I looked up places for under 200k ...and only one under this market exists others are under contract or unconditional!

Longgg longgg gone.

 

[Peter Parker]

Longgg longgg gone.

Such properties were available as recently as 2 years ago, so not that long ago

At that time one of the agents (Ray White) was trying auctions, but it wasn't an auction area and I don't think it was all that successful (for the vendor).

But since bottom end asking prices seem to have risen more than the growth figures given in the magazines.

 

[sash]

Yep....so true...in hindsight...should have bought more....

Anycase...there are other areas where there are bargains...I will let people know when I have filled up on a few investment properties.

As they say....a bargain comes along everyday....you just need to act on purchasing it!

Such properties were available as recently as 2 years ago, so not that long ago

At that time one of the agents (Ray White) was trying auctions, but it wasn't an auction area and I don't think it was all that successful (for the vendor).

But since bottom end asking prices seem to have risen more than the growth figures given in the magazines.