What areas in Melbourne are good value at the moment?

Is melbourne really immune to savage price falls, like happened overseas?
Our house prices are still very high compared to the rest of the world. I guess what im getting at is, if there is a major fall, how wise is it to buy now and is it really good value? Espescially given the crap yields. Pass the crystal ball please.
 
I would really love to see melbourne grow into a super cool place...
right now it is but there are things that will be plus plus factor..
thinking of one area :)
 
units4me said:
Is melbourne really immune to savage price falls, like happened overseas?
Our house prices are still very high compared to the rest of the world. I guess what im getting at is, if there is a major fall, how wise is it to buy now and is it really good value? Espescially given the crap yields. Pass the crystal ball please.
Click to expand...

well a lot of people say in real estate
'its not when you buy but how long youve been in it'

for me that rings about 75% true. If you can get a 5% additional discount by timing the market then thats a bonus and a deal well done
 
Ms Jade said:
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.
Click to expand...

There's no point bringing up facts here!... people think you are west bashing.

The facts are:
1. Inner west has had large gains in the last few years, its very unlikey to continue.
2. Yields are very poor.
3. Prospects for CG in the next few years a very unlikely.

Reality is that the inner west is no longer the cheap, close to the city area it used to be.

I have no problem with buying inner west at all, if the numbers stack up. Spending $700k on an average property with poor yield and little cg prospects just doesnt make any sense.
 
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I agree with Giddyup. I think the inner west had it’s run. I was looking for a house in Yarraville because I thought the area still has legs but after reviewing recent growth and yields I cooled off on the area. I have property in both inner east and inner west and I think large apartments in the inner east offer the best value at the moment. Mostly due to rental demand and yield.
 
Ms Jade said:
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.
Click to expand...

if you're talking factory workers, tradies, other blue collar trades, possibly doctors, nurses and other medical ones too.

If you're talking IT consultants, accountants, investment bankers, engineers, lawyers etc - they are in the CBD - Southbank (IBM, PWC, Microsoft etc), Docklands (NAB, ANZ) Collins St (all the courts)

if a professional wanted to earn 6 figures the highest probability would be in the city (not in clayton or springvale or frankston)
 
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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While I would agree with you on the surface of things, I have worked right in the heart of Frankston renting out properties within walking distance to everything and recently moved out to Carrum Downs, I have seen a higher quality of tenant here for one thing & a better rental acheivement for properties. Not what you would expect given all the things that you have so rightly mentioned!
 
Righteous Toss said:
1 -3 how would you rate these 3 suburbs purely on location

1, Frankston Nth
2, Karingal
3, Carrum Downs
Click to expand...
Purely on location if earlier points are to be taken into consideration then as you listed them. However, as far as listing them in order of a good area to invest? List them in the reverse :).
 
Sez said:
Purely on location if earlier points are to be taken into consideration then as you listed them. However, as far as listing them in order of a good area to invest? List them in the reverse :).
Click to expand...

Or does it mean Carrum Downs is over-valued?

While Carrum Downs' housing stock is better than Franga North, its location is and will remain poorer.

In 40 years time Carrum Downs will continue to be an inferior location to Franga North.

In that time housing in both suburbs will be considered old.

However the difference is that because of its better location Franga North will have more newer housing and redevelopment than Carrum Downs. So its housing stock and demographics could in time be better than Carrum Downs, bringing with it capital growth.

A bad reputation suburb in a better position will appreciate faster than a better reputation suburb in a worse location. Refer to Heidelberg West and Chadstone for example.

While it's true that reputations take a generation or two to change, locations are even less changeable. For long-term investment the latter is the horse I'm backing.
 
I spotted Yarraville village for the first time a few weeks ago. I am one of those guys who grew up in the East and now lives in the Inner North. The thought of going west was just plain foreign.

BUT i gotta say I was blown away by Yarraville. What a cool little village. Amazing. We all know about the old cinemas in Balwyn, Northcote and Windsor. Why didnt I know about Yarraville? Groovy joint. Reminds me of a country town like Castlemaine etc.

So for those of you who already know the area what I am sying might sound glib. But the truth is many people just never go there. And we should.

I went a bit further to Kingsville - another amazing little block. Also went to the village in Flemington (next to train station). All great places.

(I am getting around due to a new job)......

Go WEST! Life is easy there.
 
Hi All,

while i take Spidermans point regarding Frankston North having a better location than Carrum Downs.....possibly...

i hardly think 10 year old housing 3 bed 2 bath double car accomodation for under $350k is overvalued!

Even older 3 bed 1 bath on larger blocks south of hall road for round low $300k, are all walkinf distance to "the downs" shopping precinct.

And while public transport may be high on some peoples priority list....i dont think in 14 years of being in Melbourne i have traveled on it more than 5 times....and never once to get to wherever i was working? I cant be the only one in melbourne who lives in the burbs who relys on a car only?

I agree regeneration potential of a suburb is important....but 40 years is a long time to wait!

Carrum downs has a few small new residential subdivisions going on at the moment, so regeneration is already going on. And as thes new housing stock are on smaller blocks, it helps dra the value of existing older, larger stock up...thats my theory anyway.

Its one of the resons i think the suburb is good to invest in right now...given a 10-15 year timeframe,

cheers,
Nathan
 
aussierogue said:
I spotted Yarraville village for the first time a few weeks ago. I am one of those guys who grew up in the East and now lives in the Inner North. The thought of going west was just plain foreign.

BUT i gotta say I was blown away by Yarraville. What a cool little village. Amazing. We all know about the old cinemas in Balwyn, Northcote and Windsor. Why didnt I know about Yarraville? Groovy joint. Reminds me of a country town like Castlemaine etc.

So for those of you who already know the area what I am sying might sound glib. But the truth is many people just never go there. And we should.

I went a bit further to Kingsville - another amazing little block. Also went to the village in Flemington (next to train station). All great places.

(I am getting around due to a new job)......

Go WEST! Life is easy there.
Click to expand...

I was the same grew up in the south east always thought the west was ugly without ever having been there. First look at Yarraville I was exactly the same, it was quaint and quiet and just like a country town but so close to the city.
Was also impressed with Seddon, Charles St and Gamon st, great cafes and lots of period homes.
Spotswood also has a country town village feel about it.
 
Wait for the knives to stop falling.

Back to the question at hand...........

What areas in Melbourne are good value at the moment?


None :cool:

Yields are rubbish. Prices still softening. In the same tone as share trading, investing in Melbourne real estate right now is akin to trying to catch falling knives. :eek:

I know that shares and property are different in their liquidity, however do you really want to be buying a high transaction entry cost asset that may soften further and have sideways tracking for the next few years.

Personally if one is a PPOR buyer, there are some nice purchases to be had right now especially in the Bayside area where we have just sold to put funds to better use or some of the inner east and south-east areas. One caveat, make sure you're going to have the intent of staying there for at least another full cycle (up to 7-10 years IMO).

Melbourne's time will come again, however with no housing shortages that I can see (my anectdotal experience has been a softening rental market also) vacancy rates are slowly rising. Undersupply in Melbourne is mythology.

The only tight market that I know of (metro at least) is Sydney.....it's playing catch up for the stagnant period up until last year or so and rents are tight. It, too however, shall also probably soften back a bit (guessing 10-15 %) once it's run is over. Yields are better though than Melbourne.

Most of Australia (capital cities right now) are stagflation nation....... the opportunities shall unfold for the patient ones ;)
 
natedog said:
Hi All,

while i take Spidermans point regarding Frankston North having a better location than Carrum Downs.....possibly...

i hardly think 10 year old housing 3 bed 2 bath double car accomodation for under $350k is overvalued!

Even older 3 bed 1 bath on larger blocks south of hall road for round low $300k, are all walkinf distance to "the downs" shopping precinct.

And while public transport may be high on some peoples priority list....i dont think in 14 years of being in Melbourne i have traveled on it more than 5 times....and never once to get to wherever i was working? I cant be the only one in melbourne who lives in the burbs who relys on a car only?

I agree regeneration potential of a suburb is important....but 40 years is a long time to wait!

Carrum downs has a few small new residential subdivisions going on at the moment, so regeneration is already going on. And as thes new housing stock are on smaller blocks, it helps dra the value of existing older, larger stock up...thats my theory anyway.

Its one of the resons i think the suburb is good to invest in right now...given a 10-15 year timeframe,

cheers,
Nathan
Click to expand...
You took the words right out of my mouth!!

eeew - Yes, I am plugging my own area but to be honest, it is where I work and I am far more comfortable with my opinion on housing in this general area than out in Richmond - better the devil you know as they say!
 
hey everyone,

just wondering what your opinions are on this one

currently looking at ballarat at the moment,

I personally think there is going to be 1-2 rate rises this year, and since we 've had a few no changes for a while
do you think its better to wait another 6 months to buy?

I undersdtand its not about timing the market, but I feel that I could probably get antoher 5% off current prices if I wait 6 months!
 
I'd take a look a look in the Mitcham and Nunwading areas. The prices seem reasonable at the moment. Not too far from the CBD. The freeway makes Nunwading the standout suburb. And the new Whitehorse school is going to make a huge difference to the area.
 
Lot's of good buys around at the moment. Make sure you do your homework. Try to get something close to public transport - train for preference. I like the eastern suburbs. I get the feeling that as children grow up and leave the nest they don't want ot move too far from the infrastructure they grew up with.

So my thoughts are that if someone has grown up in the Kew, Balwyn area and educated at a private school they might want that for their children too. So if they can't afford to get a foot into those suburbs they will look out further. Blackburn, Nunawading, Mitcham, maybe even Ringwood and Heathmont. Lovely green suburbs. Good infrastructure. Now that the freeway is there these areas are going to boom.

Who wants to go out west to the flat, uninspiring west, if you have choice to stay in the leafy green suburbs? I have many friends who have ended up buying in Ferntree Gully, Boronia, Croydon so that they could have a backyard and green outlook. They commute to the city by train and have a great life.
 
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