What areas in Melbourne are good value at the moment?

Melbournian said:
500K+ would be sufficient for apartments.
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Depends on what you want. I personally would target size - go for the larger ones ( they tend to be a bit older) with 2/3 bedrooms, 2 bathrooms and at least 1 car park ( for maximum appeal in the future). These would set you back above 600k, but are real value plays for the future as the brand new ones that offer the same size and utility are close to 1m ( if not more).

5 years back, melbourne was scarce of top quality apartments in its inner city. That has been ( or in the process of) being fixed by all the new ones that are high quality ( brand new). The 'high quality' comes with a price- see realestate.com.au for such listing such as prima pearl, etc...

So what about older ones that are a bit less quality ( however good enough) as compared to the brand new ones, and offer more on space and utility than the new ones? real bargains to be had....i think....with a bit of searching, you could snag a slighly older one with plenty of space and utility for 600k+. As the above poster said, i would then use the space to do capital improvements to increase the price appreciation. Tough to do if you opt for a showbox new one, unless you want to pay 1m and not bother with it in the first palce.
 
^ this has been my niche for a while and I generally target the holy trinity of Toorak, South Yarra, Prahran. 70s – 80s blocks with large sqm apartments. Its been ok so far, rental demand is the main driver for me. I wouldn’t want to be a vendor this year or the 1st 6months of next year.
 
Carrum Downs is fairly good for rental returns at the moment. Average rent for a 3 bedroom (older style) is about $300 - $310 and you're often paying only $320k - $340k for the property, I've seen an increase in investors in this area recently. It is close to Frankston shopping centre, Cranbourne shopping centre, Dandenong centre and a short drive to train stations. Never short on tenants wanting to rent what I have available here! We have a few listed at the moment www.munnpartners.com.au , to give you an idea of the general price in the area.
 
eeew said:
Depends on what you want. I personally would target size - go for the larger ones ( they tend to be a bit older) with 2/3 bedrooms, 2 bathrooms and at least 1 car park ( for maximum appeal in the future). These would set you back above 600k, but are real value plays for the future as the brand new ones that offer the same size and utility are close to 1m ( if not more).

5 years back, melbourne was scarce of top quality apartments in its inner city. That has been ( or in the process of) being fixed by all the new ones that are high quality ( brand new). The 'high quality' comes with a price- see realestate.com.au for such listing such as prima pearl, etc...

So what about older ones that are a bit less quality ( however good enough) as compared to the brand new ones, and offer more on space and utility than the new ones? real bargains to be had....i think....with a bit of searching, you could snag a slighly older one with plenty of space and utility for 600k+. As the above poster said, i would then use the space to do capital improvements to increase the price appreciation. Tough to do if you opt for a showbox new one, unless you want to pay 1m and not bother with it in the first palce.
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500K+ will snag you a large 2 bedroom if you know how to find one.

As for 600K+ market is coming down -(163 City Rd, southbank - 3 bed 2 bath 1 carpark) sold 565K+ genuine original one - remember when i said to sell.
 
Giddyup said:
Vendor is obviously living in the past.
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Maybe he/she is just not in a hurry to sell in a buyers market? I agree it is unlikely to sell for the asking price but you only need one buyer. It will probably just disapper off the market within the next month I would guess.
 
Sez said:
Carrum Downs is fairly good for rental returns at the moment. Average rent for a 3 bedroom (older style) is about $300 - $310 and you're often paying only $320k - $340k for the property, I've seen an increase in investors in this area recently. It is close to Frankston shopping centre, Cranbourne shopping centre, Dandenong centre and a short drive to train stations. Never short on tenants wanting to rent what I have available here! We have a few listed at the moment www.munnpartners.com.au , to give you an idea of the general price in the area.
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While Carrum Downs has better housing stock (on average) than Frankston North, its location is inferior IMHO. I'd even rate Karingal's location better.

Car parks at stations fill up early so driving to the station isn't ideal. Also all the buses from Carrum Downs backtrack via Kananook or Frankston, adding over 30 min each way to the commute. Freeway access though is OK, as is access to nearby industrial areas for tradies. Whereas you can walk to the station from parts of Frankston North.

The rental return quoted - around 5% - is not exceptional and you can get the same in handier areas that I think offer better prospects.
 
st kilda east 2 bedroom apartments are ranging from 400 to 650.

460 to 470 is about the norm for a decent layout with reno potential.
 
Spiderman said:
While Carrum Downs has better housing stock (on average) than Frankston North, its location is inferior IMHO. I'd even rate Karingal's location better.

Car parks at stations fill up early so driving to the station isn't ideal. Also all the buses from Carrum Downs backtrack via Kananook or Frankston, adding over 30 min each way to the commute. Freeway access though is OK, as is access to nearby industrial areas for tradies. Whereas you can walk to the station from parts of Frankston North.

The rental return quoted - around 5% - is not exceptional and you can get the same in handier areas that I think offer better prospects.
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1 -3 how would you rate these 3 suburbs purely on location

1, Frankston Nth
2, Karingal
3, Carrum Downs
 
Giddyup said:
What rent would you get with that, $400/wk? maybe if youre lucky. 3% gross yield. Yeah... great investment.

Passed in on a VB of 620, now have it advertised at 685... Vendor is obviously living in the past.
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My mistake I didn't realize rental yield was the single most important factor. Better find something returning 5% with no outlook for CG miles from employment and low incomes
 
BernieLarkham said:
My mistake I didn't realize rental yield was the single most important factor. Better find something returning 5% with no outlook for CG miles from employment and low incomes
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Considering that the market is flat or dropping, and will continue to be that way for 12 - 18 months at least, yield is very important. As is not paying well over what the property is worth because you havent realised that property is at the START of the downward part of the cycle.

BernieLarkham said:
no outlook for CG miles from employment and low incomes
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That sounds like a pretty good description of the inner west. Well, I'll give you that its not too far from the CBD, but it is hardly a high income area and with prices like that property, forget any CG in the near future.
 
That sounds like a pretty good description of the inner west. Well, I'll give you that its not too far from the CBD, but it is hardly a high income area and with prices like that property, forget any CG in the near future.

It all depends on your goals/objectives and how long your outlook is. I look long term others look shorter for hot spots etc. Each to their own.

What I will say is that the inner west is VERY close to the main employment hub, that being the CBD. Probably closer than 90% of Melbourne. Incomes are on the rise in the area and are well above the the average already (check SQM).

There is a changing demographic and the next lot of census data will be fascinating to see that shift. Historically the inner west has had growth that outstrip the majority of areas in Melbourne. Yarraville, Willy, Newport for instance all have 11%+ compounding returns over 30 years with West Foots, Seddon etc not far behind.
 
BernieLarkham said:
That sounds like a pretty good description of the inner west. Well, I'll give you that its not too far from the CBD, but it is hardly a high income area and with prices like that property, forget any CG in the near future.

It all depends on your goals/objectives and how long your outlook is. I look long term others look shorter for hot spots etc. Each to their own.

What I will say is that the inner west is VERY close to the main employment hub, that being the CBD. Probably closer than 90% of Melbourne. Incomes are on the rise in the area and are well above the the average already (check SQM).

There is a changing demographic and the next lot of census data will be fascinating to see that shift. Historically the inner west has had growth that outstrip the majority of areas in Melbourne. Yarraville, Willy, Newport for instance all have 11%+ compounding returns over 30 years with West Foots, Seddon etc not far behind.
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Probably not worth it mate. In Melbourne there are people who like the east and think the west is full of derros/druggies/teen mums/blacks/reds/greens/underworld figures etc, etc :rolleyes: and those who disagree. It seems that never the twain shall meet (despite the first bunch never going closer to many western suburbs than fanging the Beemer along the West Gate and down to the Lorne beach house :rolleyes:).
 
BernieLarkham said:
What I will say is that the inner west is VERY close to the main employment hub, that being the CBD. Probably closer than 90% of Melbourne.
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I've noticed an assertion about people needing to travel to the CBD for work quite often, and this just reminded me. Actually, less than 15% of jobs are in the city (iwhich includes Docklands, Southbank, St Kilda Road..). I have nothing against the inner west, BTW, but as the suburban sprawl has extended south-east the jobs have too.
 
I'm a fan of the west, have lived here all my life, however I am also a realist.
When someone says there is good value in seddon for these properties going for $700k odd, you have to wonder .......
Sure they will continue to get steady growth in these suburbs, but they have had more than their share of a good run. These are the same properties that were purchased for roughly $250k 10 years ago ....
Yes they are nice suburbs that have achieved good growth, but if I was to invest $700k, it wouldn't be there
 
MC1 said:
I'm a fan of the west, have lived here all my life, however I am also a realist.
When someone says there is good value in seddon for these properties going for $700k odd, you have to wonder .......
Sure they will continue to get steady growth in these suburbs, but they have had more than their share of a good run. These are the same properties that were purchased for roughly $250k 10 years ago ....
Yes they are nice suburbs that have achieved good growth, but if I was to invest $700k, it wouldn't be there
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Fair enough MC - be interested if you would purchase as an owner occupier? If not where would you look for 3brms and some land for that money?
 
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