Where to Buy in Melbourne in 2008
- Thread starter mdv2008
- Start date
I think given there's a lack of responses because this question is way too broad i.e How long is a piece of string?
Melbourne is a big place. south, east or west?, new or old?, house and land or apartment? proximity to city? cashflow requirements? what's your risk profile?
Read the other threads and then narrow the question.
Melbourne is a big place. south, east or west?, new or old?, house and land or apartment? proximity to city? cashflow requirements? what's your risk profile?
Read the other threads and then narrow the question.
Hi MDV,
If looking East, have to agree with Ringwood and Heathmont areas. Great amenity and I believe undevalued. As you are looking for a house on land this time try and secure over 600 sq (700 sq to be safe) so that you have development potential in the future.
Aim for around 1 km from the hub of Eatsland. High threes to four hundred g's should be enough for an older house in good condition. Maroondah is a green council, so if you ever think of developing, look for no huge significant trees unless they are on the perimeter of the block.
The east has gone up too much during the last boom, so you won't see much value.
The inner west has a lot more potential if you are looking for solid capital growth. Suburbs like Yarraville, Footscray, etc are undergoing major gentrification and you can still find great value houses. And they're all within 15km of the city as well !
If your budget is a bit lower, I would go out a bit more to Caroline Springs / Burnside. They are within 20km of the CBD and with the new Deer Park bypass completing soon, that will mean it'll take less than 20 mins to get into the city with freeway all the way in ! Not to mention the rental returns are a lot better than inner city and with depreciation, you might get CF neutral properties if you are lucky.
The inner west has a lot more potential if you are looking for solid capital growth. Suburbs like Yarraville, Footscray, etc are undergoing major gentrification and you can still find great value houses. And they're all within 15km of the city as well !
If your budget is a bit lower, I would go out a bit more to Caroline Springs / Burnside. They are within 20km of the CBD and with the new Deer Park bypass completing soon, that will mean it'll take less than 20 mins to get into the city with freeway all the way in ! Not to mention the rental returns are a lot better than inner city and with depreciation, you might get CF neutral properties if you are lucky.
I agree that Yarraville still has significant upside, however the rental yields are not too flash, circa 3%. You are going to pay at least $500K and up for a well positioned property.
If you do buy in Yarraville, make sure you get something that you can knock down, or a period home you can rennovate. You want to be close to Anderson / Ballarat st's as this is the TRUE Yarraville village. The other place you would want to live near is Cruickshank Park. Be careful of anything on Williamstown Rd, as it is used by a lot of trucks. Parking is also a problem, as the streets in Yarraville are tiny and narrow, so you'll want something with offstreet parking, not many places in the village have this.
Also check ads on realestate.com.au carefully, as a lot of houses say they are in Yarraville, but actually are in Kingsville. RE's getting a bit creative.
If you do buy in Yarraville, make sure you get something that you can knock down, or a period home you can rennovate. You want to be close to Anderson / Ballarat st's as this is the TRUE Yarraville village. The other place you would want to live near is Cruickshank Park. Be careful of anything on Williamstown Rd, as it is used by a lot of trucks. Parking is also a problem, as the streets in Yarraville are tiny and narrow, so you'll want something with offstreet parking, not many places in the village have this.
Also check ads on realestate.com.au carefully, as a lot of houses say they are in Yarraville, but actually are in Kingsville. RE's getting a bit creative.
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Well Id personally look into Werribee, 20 or so kms out from Melbourne, still dirt cheap to get in and with massive population growth rates predicted into the future this area will do very well IMO.
I thought about it a few months back (just purchased in home town instead) and the agents were telling me that houses are in high demand and are snapped up very quickly when they come to the market which is rarely.
I thought about it a few months back (just purchased in home town instead) and the agents were telling me that houses are in high demand and are snapped up very quickly when they come to the market which is rarely.
I agree with want2bewealthy. Still can get very cheap houses in Werribee. Better still it's surrounded by more expensive suburbs like Point Cook, new areas like Tarneit, Truganina and Manor lakes. The new golf course by Greg Norman in Pt cook and the Wyndham Harbour marina in Werribee South will give the area a major lift in price. And I think there's a discussion going on about extending another train line to that area. Using the highway it's only about 30 mins to Melbourne CBD. And I think more and more people will move over to the west as the eastern side becomes more expensive.
I agree about the Western corridor towards Werribee. It is a potential gold mine.
For example I bought an old 3brm Fibro house for 130k in 2006 off market Rd (near station) and also a brick veneer house in Hoppers Crossing for 170k back in 2006.
They are now worth 180k and 225k respectively....the rents are 195pw and 200pw (going to 220pw soon).
The number of shopping centres and facilities springing up is also driving prices higher.
My bet is this time next year....there will nothing under 200k in Werribee and nothing under 235k in Hopper Crossing. That would represent a 30%-40% gain in three years for me with little holding.....about 30pw or $4600 odd for 60k-70k gain on a initial deposit of 16k-22k.
The agents I am talking to are saying most buyers are coming from the Southeastern suburbs of Melbourne!
For example I bought an old 3brm Fibro house for 130k in 2006 off market Rd (near station) and also a brick veneer house in Hoppers Crossing for 170k back in 2006.
They are now worth 180k and 225k respectively....the rents are 195pw and 200pw (going to 220pw soon).
The number of shopping centres and facilities springing up is also driving prices higher.
My bet is this time next year....there will nothing under 200k in Werribee and nothing under 235k in Hopper Crossing. That would represent a 30%-40% gain in three years for me with little holding.....about 30pw or $4600 odd for 60k-70k gain on a initial deposit of 16k-22k.
The agents I am talking to are saying most buyers are coming from the Southeastern suburbs of Melbourne!
Interesting,
I rarely see any houses for sale in the area and have the emailed to me as soon as they come onto the market,
Werribee isnt that bad a place to live. . also, you must look at what happens as prices rise, people on lower income levels find they have to move and the suburb becomes 'classy' over time when renovators restore and beautify older properties.
Its all about population growth.
I think its a great time to buy, so long as the numbers add up (yield) and holding costs are low.
Bankwest indeed do have good a good rate but remember half of that will be taken at tax time each year on what little you put into it without any leverage to make it worthwhile, unless youve got a couple hundred thou to pump into it. .
Plus there are no tax benefits doing this either.
the key bit there is yield and holding costs... yes if they are negligible then do it, but it's hard to imagine. you would need to be gettign around 12% gross return to justify it. buying a neg geared asset when prices only look set to go down doesn't make sense.
so I agree with you, it's just finding these sorts of investments isn't easy and usually requires some value add or develop etc
Agree....the houses are moving quickly.
Also, I talked to my agent to increase rents. She has told me that they have gone up about 20% over the last year.
As for the area being lower income....you maybe surprised. As it is more middle income than lower due to the newer estates.
Lots of shopping amenities and new card yards springing up. Not sign of an area in decline.
Currently a DA is in for the Werribee South Marina and housing. If this gets up...you may see houses on the water selling for over a million.
Also, I talked to my agent to increase rents. She has told me that they have gone up about 20% over the last year.
As for the area being lower income....you maybe surprised. As it is more middle income than lower due to the newer estates.
Lots of shopping amenities and new card yards springing up. Not sign of an area in decline.
Currently a DA is in for the Werribee South Marina and housing. If this gets up...you may see houses on the water selling for over a million.
Hi Ausprop,
Why would you make such a claim? I hear all of the D&G reports in the lame-stream media but they rarely seem to reflect reality.
To me, people around Melbourne apear to be as affluent as ever. Folks are working long hours and being paid accordingly. A larger than normal percentage of their pay is handed straight over to the banks and petrol companies, however, on the weekends they head to the local shopping center and spend whatever’s left on stuff.
I’m feeling pretty good about my property investments in outer eastern Melbourne:
Short term performance will be underpinned by relative affordability, low availability and improving rental yields.
Performance in the medium term will be boosted by the arrival of Eastlink (finally) and the development of central Ringwood (and other suburban transport hubs).
In the long term, I see no reason why growth shouldn’t average between, say, 8% and 12% per year just as history would have it.
Exactly what is it that makes you so pessimistic about the economies of Australia’s Eastern States?
Regards – Ben
