Where to buy development sites for $350-400k in Melbourne???

[Mindmaster]

Planning on buying a 3 unit/townhouse development site S.T.F. (subject to finance) early to mid 2014 in sunny Melbourne. Listed a wish list of requirements of a good development site below.

Must Haves
-allow a profit margin of at least the magical 20%
-maximum price of $400,000
-at least 600m2 with a frontage of at least 15-16 meters

Good to Haves
-near a zone 1 station
-less than 10 train stations to city loop
-good record of CG for units
-development friendly council
-no more than 15km from the CBD
-no nearby large areas of vacant land and a glut of properties coming online

Getting all of the must haves and good to haves is difficult but doable.

Originally started with this list
Albion
Glenroy
Laverton
Altona
Mont Albert North
Mrrumbeena
Williams town
Newport
Broadmeadows
Fawkner
Reservoir
Epping

These areas were eliminated because..
Williamstown – too expensive $870k median for houses
Newport – too expensive $625k for houses
Murrumbeena – too expensive $690k for houses
Mount Albert North – too expensive $775k for houses
Altona – too expensive $535k for houses

Not looking too good
Epping
Cons – 22km from CBD, 19 stops to loop
Pros - development blocks are not hard to find. Units/town houses going from mid 200’s to lower 300’s

Reservoir
Cons - 14 stops to loop and a little pricy
Pros - zone 1 and units/town houses are selling for good prices (350-400k or higher) in relation to the cost of land/houses

Laverton
Cons - 17km from CBD
Pros - unit prices at low to mid 300’s are good compared to houses at a median of $332k

Broadmeadows
Cons – 16km from CBD, has a bad rep
Pros – Low median house price of $320k, prices for townhouses/units ranges from mid 200’s to low 300’s

Laverton
Cons – 17km from CBD, not familiar with area
Pros – low median house price of $332k with townhouse/unit prices all over the 300’s

Glenroy
Cons – median price of houses at $415,000 is a little high, not familiar with area
Pros – townhouse/unit prices in mid 300’s to mid 400’s, 13km from CBD

Looking Good
Albion
Pros - On Jakes Hot for 2013 list, 13km from CBD, 7 stops to city loop, median house price of $360k, 600m2 properties not too hard to find, plenty of development going into the area, reasonable history of CG, development friendly council, fairly familiar with area
Cons – got a bad rep, unit prices are fairly low compared to house prices

Fawkner
Pros – 12km from CBD, zone 1 train station, townhouse/unit prices in the mid to high $300’s compared to median house price of $400k
Cons – 400k is the at the budget limit, unfamiliar with area

So Ladies, Gentlemen and Property Investors
Where would you recommend for buying a development site for $350-400k in Melbourne???

 

[Mindmaster]

Oops, wrong section of forum Maybe mods can move this to "where to buy"

 

[imbi3]

How about Braybrook or Sunshine North or Sunshine West?

 

[Aaron_C]

I'll be looking in South Eastern suburbs. Places like Malvern East, Bentleigh etc. Higher entry price but can absorb good stock.

 

[Hodge]

currently developing in laverton. As you mentioned reasonable close to cbd, two train stations zone one. Best of all council is pro development. Got a planning permit approved in 9 weeks!

 

[jacko18]

What build after 2 months good work

 

[Mindmaster]

How about Braybrook or Sunshine North or Sunshine West?

West Sunshine is too isolated with no nearby train stations or decent shopping centers. Could not find many good sized sites in North Sunshine for less than 400k and Braybook is the same.

With the exception of West Sunshine, all that area looks good with Albion having the cheaper large blocks. I'd be happy with anything there for right price

I'll be looking in South Eastern suburbs. Places like Malvern East, Bentleigh etc. Higher entry price but can absorb good stock.

A bit beyond my budget for now.

currently developing in laverton. As you mentioned reasonable close to cbd, two train stations zone one. Best of all council is pro development. Got a planning permit approved in 9 weeks!

9 Weeks!!!! Wow, Laverton has just been promoted to the looking good list. What kind of development are you doing Hodge?

 

[Hodge]

I'm building a second dwelling at the back. Laverton has large parcels of land and very wide driveways. I thought 9 weeks was a record until I spoke to my mate yesterday who's doing the same. He's planning permit approved in 7 weeks!

 

[jacko18]

What are there good and bad parts about laverton , or the suburb is all pritty good never been out that way .

 

[Hodge]

What are there good and bad parts about laverton , or the suburb is all pritty good never been out that way .

Near the station is the best pocket to purchase. If you drive around you will see a lot of developments happening. The only downfall to Laverton is it needs a shopping centre. Westfield were due to build near by in Williams Landing but not sure what happend.

 

[one world]

Mindmaster, from your previous posts I know you've been bitten before and ended up paying too much in North Frankston. If my memory serves me correctly, you used a buyers agent to "guide" you. Or am I confusing you with Many Maneouvres?

That said, and on a positive note, there is no shortage of cheap, rentable houses on dual occ or triple occ sites in Frankston. Many are selling for under $300,000.

I know all the bad stories about Frankston. Rest assured, the bogans are slowly moving out and developers moving in. Its pretty hard to go wrong if you buy the cheapest quartile of Frankston property.

 

[tep846]

I personally like Altona Meadows better than Laverton. Seems to be better neighbourhood. And you can find some houses within $350-400k price range.

 

[Mindmaster]

Mindmaster, from your previous posts I know you've been bitten before and ended up paying too much in North Frankston. If my memory serves me correctly, you used a buyers agent to "guide" you. Or am I confusing you with Many Maneouvres?

That said, and on a positive note, there is no shortage of cheap, rentable houses on dual occ or triple occ sites in Frankston. Many are selling for under $300,000.

I know all the bad stories about Frankston. Rest assured, the bogans are slowly moving out and developers moving in. Its pretty hard to go wrong if you buy the cheapest quartile of Frankston property.

Hi One World, I've noticed you are a strong advocate of Frankston and perked up when I saw your posts. I bought a 650m2 IP in FN 3-4 yrs ago for $268k, selling it right now for $280k. Selling because it is basically doing nothing and the funds can be more profitably used in a curent development.

What would you say a new 2 bed and a new 3 bed unit/townhouse would sell for in the areas of Frankston you refer to?

I personally like Altona Meadows better than Laverton. Seems to be better neighbourhood. And you can find some houses within $350-400k price range.

What do you think of public transport and infrastructure for Altona Meadows with the trainstation to the north and not much else I can see nearby?

 

[one world]

Hi One World, I've noticed you are a strong advocate of Frankston and perked up when I saw your posts.

To be honest, I'm not blindly pro-Frankston. I only go for the cheapest quartile of Frankston property MM, and the sort of stuff that is on a dual occ or triple occ site. There are plenty of good deals to be found if one looks and negotiates hard enough. You won't see me buying top-end properties in Frankston.

I bought a 650m2 IP in FN 3-4 yrs ago for $268k, selling it right now for $280k. Selling because it is basically doing nothing and the funds can be more profitably used in a curent development.

Back when your BA put you into the deal, the lowest quartile of Frankston North property was selling for around $200,000, maybe slightly less. Around that time I managed to snare one at auction for around $175,000. Although I am not a trader or flipper, for a number of reasons, I resold it barely a year later for $295,000. In the current market, its worth around $270,000.

What would you say a new 2 bed and a new 3 bed unit/townhouse would sell for in the areas of Frankston you refer to?

Depends on the quality of the build. The market for new stuff in Frankston is strong.

Bit by bit, things are improving as the local bogans slowly move inland, driven away by increasing rents.

 

[tep846]

What do you think of public transport and infrastructure for Altona Meadows with the trainstation to the north and not much else I can see nearby?

I reckon people on that side rely on cars more. They drive and park at the nearest train station.

 

[Hodge]

I hate the idea of having to drive and park your car at the train station. it's more convenient to be able to walk to the station knowing your car is safe at home. Also the traffic in the morning on queen street, Altona Meadows can be a nightmare.

 

[Savanna100]

Those parameters outlined by the OP seem quite sound. However, I'd be keen to hear people's views on the possibility that Melbourne will have some decentralized areas in the same way Sydney has Parramatta and Chatswood etc. Will places like Box Hill fulfill the same role? If so, this would open up a lot more great development suburbs. Is this likely? Just wondering...

 

[strongy1986]

I hate the idea of having to drive and park your car at the train station. it's more convenient to be able to walk to the station knowing your car is safe at home. Also the traffic in the morning on queen street, Altona Meadows can be a nightmare.

My car has had many sleepovers at the train station, sometimes an all weekend event.
Just drive a s$!t box and you have nothing to worry about, you can even laugh when people break into it

 

[one world]

Will places like Box Hill fulfill the same role? If so, this would open up a lot more great development suburbs. Is this likely? Just wondering...

I had a close friend who encouraged me to buy Box Hill houses for less than $85,000 back during Gulf War 1. He bought three, I foolishly demurred, making all sorts of excuses not to buy.

Today, with most decent houses in Box Hill selling for close to a million dollars a pop, I just cannot see the suburb tripling in a hurry, even with the weight of Chinese money behind the it.

 

[Brady]

I had a close friend who encouraged me to buy Box Hill houses for less than $85,000 back during Gulf War 1. He bought three, I foolishly demurred, making all sorts of excuses not to buy.

Today, with most decent houses in Box Hill selling for close to a million dollars a pop, I just cannot see the suburb tripling in a hurry, even with the weight of Chinese money behind the it.

That must of been said a few times for them to go from $85,000 to $1,000,000