whats going to go up in melbourne!

[maireadahayes]

Hello - I'm new to this! I am looking to buy my first investment poperty very soon. Looking at areas like Glenroy, Fawkner, Coburg.....

Does anybody have any thoughts on which areas/suburbs are likley to give a good return in the future?

Thanks

 

[Player]

Welcome to the forum maireadahayes, ......how long's a piece of string? Everything will go up given a decent time frame.

I don't know much about Fawkner, however Coburg and Glenroy are good areas and both now IMHO fully priced.

I don't know what your budget is, however the Glenroy end of Broadmeadows offers good value for 600-650 sq m blocks with rental houses on them for now and with development potential City of Hume is pro-development. It has good amenity, infrastrucutre and is still close to the city. Also one of the 2030 transit cities that state govt has ermarked for denser development.

If you are after units say in Coburg or Glenroy, then try for 2-3 BR and two bathroom, close (say 300-500 m) from a train and with amenity such as schools, shops, buses, etc.

Obviously they get cheaper the further you move out Broady cheaper than Glenroy, cheaper than Coburg, cheaper than Brunswick, etc. Have a search on the Where to Buy forum for those suburbs and see how you go.

Good luck

 

[Jonathon]

I don't know much about Fawkner, however Coburg and Glenroy are good areas and both now IMHO fully priced.

I agree that Coburg looks fully priced in that its recent increases have certainly been fairly full, but it's still the cheapest of the Ascot Vale, Essendon, Coburg, Brunswick, Northcote, Fairfield area.

There are some great character streets and it still probably has the cheapest californian bungalows within the 7km ring. (Excluding west)

Coburg has great public transport links, so finding tenants shouldn't be a problem, although if I had one of those nice character homes, I'd be very picky about the quality of my tenants.

 

[newhigh]

demographers say.....why not frankston?

Affordable beachside property in major cities appreciate the most, according to the demographer Bernart Salt. Try Frankston......it has a thread here......and you won't come unstuck at an average price of around $300k or less. Goodluck

 

[Belu]

i just bought in glenroy - although below the market i think.

Just got the contracts today on a 3 bedroom concrete home on 697sqm for $348k.

Market value is in the high 3's and with the market in Glenroy the way it is going now things are only going up.

Saying that what kind of buying position are you in? Can you move quickly? It usually helps a lot.

 

[Player]

Good stuff Belu,

you over stretched beyond what you were looking at last year and picked up a bullet proof (concrete) box. Nice land too. What'll it rent for?

Now as I stated above, about being fully priced....my opinion is confirmed to be rendered humble

 

[Belu]

lol i think that Glenroy is fully priced at the moment. I managed to pick this up when it had no advertising, and it is an old box (although looks pretty good inside) - so less of a market for it then a renovated house on good land.

It is currently tenanted for $1500/month and I will leave it on that, aim to move in within 12 months for FHOG.

Went to an auction a month ago for a similar property which went for $358k to a developer so i am happy with the purchase.

 

[Player]

Good strategy for the 14 K. Ride the interest rates down and fix (if you're so inclined) at a level you are happy with or as they start to rise again.

Any idea how many dwellings City of Moreland will allow on there? Is it a corner? Could you push for three townies?

Again, well picked up Ben....you will be known as the Glenroy Guru

 

[Belu]

haha it is all about having a good RE in the area - anyone on the lookout there let me know, cant recommend him enough.

Not a corner, second block in (will be keeping an eye if that corner one comes up)

Judging by others I will get 2 x 2level and 1 x single on there. Figures work out on inflated costs, 3 years holding at 6.5% and sale prices at today's level, so hopefully there is some upside in that!

 

[sash]

Try Melton, Werribee and Hoppers Crossing....real potential over the next few years there!

 

[Invest]

What about outer North West? Sydenham, Taylors Hill, Hillside?

I hear they are building Myer in the next few years so Water Gardens shopping center will be massive.

Also it pretty much has everything there, shops, train station and buses, Tulla freeway...

 

[keneth]

newport, seems to have some affordable properties.

8km from city. easy acess to CBD, next to williamstown which is very expensive already...

 

[Jonathon]

I'm not a fan of the annual projections you see at this time of year, but interestingly, in today's AFR there's a projection of median price by postcode for the next 12 months.

In Melbourne, the only suburbs that are forecast to achieve 10% growth are Coburg, Glenroy, Fawkner, Broadmeadows and Brunswick West. (Or was it East, can't remember).

As I say, I'm not a huge believer in these projections, but it is interesting that this spoke of the city is the only area that this particular forecaster thinks will have double digit growth.

 

[keneth]

isnt it just a great time to look to g properties where are near on being positively geared...

the growth doesnt need to be there as long as interest get lower, and yields get higher...

properties may fall at the top end of the market, but for the first home buyers anything under $250k will be well sort after i would have thought...

 

[reality_22]

isnt it just a great time to look to g properties where are near on being positively geared...

the growth doesnt need to be there as long as interest get lower, and yields get higher...

properties may fall at the top end of the market, but for the first home buyers anything under $250k will be well sort after i would have thought...

So in your opinion it is better to buy properties which are positively geared? What about capital growth?

 

[sash]

Well capital growth is about demand.....at the moment the number of first home buys is about 22% of the market up from 12%!

With the economy the way it is and people buying cautiously....anything under 300k in Melbourne is flying out the door. Simply look a the properties listed under this mark in the affordable suburbs.

From my perspective...the West (20-30 klms) out in Melbourne has been undervalued for a fair while. Similar properties in Southeast are about 50-100% more.

Look at the fundamentals (i.e. value, yield) and capital growth will follow.

So in your opinion it is better to buy properties which are positively geared? What about capital growth?

 

[naijacoder]

Sash,
So what do you think about Caroline Springs area?

 

[sash]

I hear there are a lot of McMansions there.

I would target the smaller and cheaper end of the market there.

My preference is to have more land value in the price. For example when I bought in Melton South in April 2007 for 155k the land component was about 85k. Thus the house cost was only 70k...to build a similar house there would be aobu 150k fully complete. The land component in Melton South is more like 95-100k.

Over time people will realise the value of area, particularly when it now almost impossible to buy a 14sqm home on 500sqm fully complete for under 250k. This in turn will drive the prices of older stuff up. The median now is about 205-220k.........when I bought I was about 180k.

It is the low end which disappears first and then the new benchmark forms.

Lasy year you could still buy for 170k.

Sash,
So what do you think about Caroline Springs area?

 

[myoung]

I hear there are a lot of McMansions there.

I would target the smaller and cheaper end of the market there.

My preference is to have more land value in the price. For example when I bought in Melton South in April 2007 for 155k the land component was about 85k. Thus the house cost was only 70k...to build a similar house there would be aobu 150k fully complete. The land component in Melton South is more like 95-100k.

Over time people will realise the value of area, particularly when it now almost impossible to buy a 14sqm home on 500sqm fully complete for under 250k. This in turn will drive the prices of older stuff up. The median now is about 205-220k.........when I bought I was about 180k.

It is the low end which disappears first and then the new benchmark forms.

Lasy year you could still buy for 170k.

Sash, Same reason i bought there in mid 2006. I also bought again in mid 2007 but in Darlingsford. Similiar rational, couldnt replace the house and land for an extra $50K over the purchase price for a 5 yr old home with gardens established etc. The Inflation of building costs has helped this theory along.

 

[Belu]

i am not the biggest fan of suburbs that have a lot of land/development going on. But then again I am trying to develop my portfolio away from the "buy and hold" strategy as I am young and can entertain a higher risk level than most.

I like the suburbs in the similar FHOG bracket that are moving to medium density as land has vanished. That is why I like Glenroy, zone 1 station, good population and location (train/ring road/freeway). Close to the airport but not under the flight path, well valued.

But personal investment strategies are what makes this forum fun