where to buy ip in melbourne for 500 k or less

Buyer advocates

jacko18 said:
yes thanks mary mat only thing is it is hard for me i work 4 weeks on 1 week of work way out in bush and then back in civilisation for a week
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Hi Jacko18,

If you are limited for time, experience and confidence, consider a reputable buyer advocate. There are lots of buyer advocates around but not many good ones so be careful.

I use Wakelin. They have a strong track record.

Also read Monique Wakelin's "Streets Ahead". It is getting a bit old now (pre GFC) but the strategy still has merit.

Do lots of reading yourself. Make your own informed decisions. Get lots of advice but don't take it as gospel - everyone has an agenda. Be especially careful of financial advisers that steer you away from property - it's because they only get a commission from selling you managed funds.

The most important thing is to DO SOMETHING. (That doesn't mean do "ANYTHING").

Does anyone have any comments on Wakelin or other reputalbe buyer advocates?

Good luck!
 
There is such a thing as decent cash flow AND strong capital growth. Don't be fooled that there is a choice of either one or the other. Remember that inner city is in a huge boom at the moment. What happens next?

As an example you could use your deposit to buy an IP (or 3) in any strong population growth VIC regional centre (a well located house with decent land 250-300K).

You should get good capital growth PLUS good yield PLUS redevelopment potential down the track. Develop down the track and you can laugh your A$$ off at the 1BR yuppie pad in Elwood. And the low purchase price will make them easy to hold.:)

Right now, Melbourne is clearly a sellers market. Keep this in mind when thinking of investing.

Oh, and steer clear of marketing "experts" too.
 
tim123 said:
Hi Jacko18,


Does anyone have any comments on Wakelin or other reputalbe buyer advocates?

Good luck!
Click to expand...

Yep - Wakelin are very one sided in their approach to property investment. (ie Inner ring, high growth properties with a draining cashflow to match). Sure, their strategy has merritt, but generally you need a huge wage to be able to hold the type of properties they suggest people invest in.

Trouble with Wakelin is that they are very dogmatic in their approach and won't consider other ideas - which are just as valid, and probably more so to people on average incomes.

Regards Jason.
 
tim123 said:
Hi Jacko18,

If you are limited for time, experience and confidence, consider a reputable buyer advocate. There are lots of buyer advocates around but not many good ones so be careful.

I use Wakelin. They have a strong track record.

Also read Monique Wakelin's "Streets Ahead". It is getting a bit old now (pre GFC) but the strategy still has merit.

Do lots of reading yourself. Make your own informed decisions. Get lots of advice but don't take it as gospel - everyone has an agenda. Be especially careful of financial advisers that steer you away from property - it's because they only get a commission from selling you managed funds.

The most important thing is to DO SOMETHING. (That doesn't mean do "ANYTHING").

Does anyone have any comments on Wakelin or other reputalbe buyer advocates?

Good luck!
Click to expand...

yeah mate i have herd of wakelin just wanted now if you have herd of property planning australia they are buyers agent and independent property advisors only ones i have found that dont sell there stock and advise on any suiburb or property based in melbourne and sydney and is a fee not a commision on how much the property worth is cheers mate
 
units4me said:
There is such a thing as decent cash flow AND strong capital growth. Don't be fooled that there is a choice of either one or the other. Remember that inner city is in a huge boom at the moment. What happens next?

As an example you could use your deposit to buy an IP (or 3) in any strong population growth VIC regional centre (a well located house with decent land 250-300K).

You should get good capital growth PLUS good yield PLUS redevelopment potential down the track. Develop down the track and you can laugh your A$$ off at the 1BR yuppie pad in Elwood. And the low purchase price will make them easy to hold.:)

Right now, Melbourne is clearly a sellers market. Keep this in mind when thinking of investing.

Oh, and steer clear of marketing "experts" too.
Click to expand...



yes units for me i was first thinking outer suburbs places like south morang and tarneit caraline springs etc because of affordability and not as negative geared i now i could get maybe to or i could get maybe 3 in the ineer suburbs but could get more in outer it depends if say 6 properties had as much growth as the 3 in the ineer suburbs when im talking about 3 and 6 properties i am saying how many i can have de4pending on how much i can afford of repayments and still live well at moment im on good income. i'm planning it for when, i am on a average salary.
 
units4me said:
There is such a thing as decent cash flow AND strong capital growth. Don't be fooled that there is a choice of either one or the other. Remember that inner city is in a huge boom at the moment. What happens next?

As an example you could use your deposit to buy an IP (or 3) in any strong population growth VIC regional centre (a well located house with decent land 250-300K).

You should get good capital growth PLUS good yield PLUS redevelopment potential down the track. Develop down the track and you can laugh your A$$ off at the 1BR yuppie pad in Elwood. And the low purchase price will make them easy to hold.:)

Right now, Melbourne is clearly a sellers market. Keep this in mind when thinking of investing.

Oh, and steer clear of marketing "experts" too.
Click to expand...

just another question unitsforme when you say keep in mind about its a sellers market at the moment does that mean i should wait for a while
 
jacko18 said:
just another question unitsforme when you say keep in mind about its a sellers market at the moment does that mean i should wait for a while
Click to expand...

Hi again Daniel,

Re sellers market, yeah, it appears that's the case now.

However, if you purchase a good property, (fits your capital growth & other criteria) for what you believe is a fair price, at any stage in the market, you should be fine.

I would rather have a solid & proven performer (in my opinion this is a blue chipper), than a rural property. The rural may have great gains now & cash flow but the capital gain over the longer term is what I'm after. I don't believe the cap gain will be as consistent in rural areas. There's no shortage of land out there & this scarcity factor is one of the factors that makes inner city property more sought after & susbsequently drives the price up.

Go back to your strategy. You say you're after cap gain. Have a look over the rurals. Their gains are sometimes dependent on a single business or industry. They sound fine when you're presented with a (eg) 50% cap gain over the last few years, but how much growth have they had on average over a 10 or 20 year timeframe? (I will probably be chastised for these comments) Compare this to the blue chip gains over the same periods. Historically, the blue chips are more reliable & consistent.

I guess you could always hedge your bets & buy 1 blue chip & 1 in regional area?

I believe in that old adage, there's no way to really time the market, it's time IN the market that counts if you're chasing capital gains.

Which areas are you looking at now?

Regards,
M&M
 
Rural?? I think not!!

mary&mat said:
Which areas are you looking at now?

Regards,
M&M
Click to expand...
jacko18 (aka Daniel) wrote:

i was first thinking outer suburbs places like south morang and tarneit caraline springs etc because of affordability

Mary&Mat, I agree with much of what you wrote, but I'm not sure I'd class places like South Morang (especially), Tarneit and/or Caroline Springs as rural!! Maybe once upon a time.....

I relocated to South Morang when I retired many years ago purely for the tranquil and laid-back rural atmosphere, but alas this sadly was to be short lived and with so many new estates springing up at every turn :( has resulted in the main roads there now being as congested with traffic in the mornings as your major arterials!!! :mad: Hmmm...come to think of it, that's probably what forced me to move back to the coast last year!!!

As for affordability, sorry to disappoint Daniel, it is very hard when you're starting out (I remember only too well :eek:) but even some of these outer suburbs are virtually untouchable for under $300K. :(

Anyhoo...regardless of where you buy, do remember two basic GOLDEN RULES:

1. Never over extend yourself, estimate at least a 2% rate increase over the first couple of years of your loan
2. Research, research and then research again, always check out any/as much information about the area before you buy.

Best of luck! :)
 
Last edited:
 
Agreed Monopoly!

Hee hee, yeah, sorry, didn't mean to class Car. Springs as rural :)

I second your 2% & research...sound advice :)
 
mary&mat said:
(lifts possibly = costly Body Corp)
Click to expand...

Plenty other reasons too :) For starters:

1. with the price diff, you can do a pretty decent value ad spruce up
2. size of the floor plan - I'll be surprised if the so called "2 double bedrooms" in the new project means "yes you can get a double bed in, but you won't be able to walk around it - and forget a Queen size)

Cheers,

The Y-man
 
mary&mat said:
Hi again Daniel,

Re sellers market, yeah, it appears that's the case now.

However, if you purchase a good property, (fits your capital growth & other criteria) for what you believe is a fair price, at any stage in the market, you should be fine.

I would rather have a solid & proven performer (in my opinion this is a blue chipper), than a rural property. The rural may have great gains now & cash flow but the capital gain over the longer term is what I'm after. I don't believe the cap gain will be as consistent in rural areas. There's no shortage of land out there & this scarcity factor is one of the factors that makes inner city property more sought after & susbsequently drives the price up.

Go back to your strategy. You say you're after cap gain. Have a look over the rurals. Their gains are sometimes dependent on a single business or industry. They sound fine when you're presented with a (eg) 50% cap gain over the last few years, but how much growth have they had on average over a 10 or 20 year timeframe? (I will probably be chastised for these comments) Compare this to the blue chip gains over the same periods. Historically, the blue chips are more reliable & consistent.

I guess you could always hedge your bets & buy 1 blue chip & 1 in regional area?

I believe in that old adage, there's no way to really time the market, it's time IN the market that counts if you're chasing capital gains.

Which areas are you looking at now?

Regards,
M&M
Click to expand...

this is http://www.realestate.com.au/property-house-vic-seddon-106432996
http://www.realestate.com.au/property-unit-vic-st+kilda+east-106499327
http://www.realestate.com.au/property-house-vic-seddon-106460528
http://www.realestate.com.au/property-unit-vic-south+yarra-106501982
ive been looking at these maybe thinking small house is better tell me what you think from a capital growth perspective
 
jacko18 said:
this is http://www.realestate.com.au/property-house-vic-seddon-106432996
http://www.realestate.com.au/property-unit-vic-st+kilda+east-106499327
http://www.realestate.com.au/property-house-vic-seddon-106460528
http://www.realestate.com.au/property-unit-vic-south+yarra-106501982
ive been looking at these maybe thinking small house is better tell me what you think from a capital growth perspective
Click to expand...

of the two in the west, I'd steer clear of Williamstown Road personally - it's very busy. James Street, on the other hand, is a nice pocket and handy to all that it should be. Both likely to be closing in on $650,000 though.
 
Hey Daniel,

I'd steer clear of the dandenong & williamstown rd ones (some will disagree, but for my criteria, main rd = bad....busy, hard for people to park if eg a couple has 2 cars but only 1 oscp, hard for visitors to park, noisy, hard to turn onto road in peak times).

Don't know much about Seddon, but I guess it's close to Footscray so your tenants will most likely be new Australians from a variety of ethnic & religious backgrounds. I believe they want to get ahead in Oz & will only rent for a short time before moving on to buy their own place (so not much stability of tenant). Have also heard crime bad in Footscray so probably wouldn't buy Seddon as too close. However, it's close to Yarraville so you could take a punt that it may go upmarket in a few years.

Oops, looked more closely at James st...no osp, only potential for it...no osp = off my list.

Love love love the Sth Yarra one. Is it over 50m...I'd assume so if 2br...2nd br looks quite small. Turning onto Punt rd would be a nightmare though...I think enough to turn me off renting there. Location great, place looks nice, have to find out how much B/Corp & rates are. How many are in that block?

Land content has always been what appreciates a house faster than a unit. However, these days, units are appreciating just as fast as houses. If I had the money, I think I'd still choose small house over apartment. If the apartment had a courtyard though, I'd give it a gander. Lifestyles are changing & you need to look at the demographics that will change over the next decade. These are generalisations: We have a huge ageing population & they want smaller apartments with a lil garden. Young singles want low maintenance but also small outdoor area. Young same sex couples (or couples not wanting kids) may want small place in inner city with outdoor area for their furkids or just to entertain.
Try & pick a place that appeals to the greatest market.

You're asking great questions though which will hopefully help refine the type of property you're narrowing your search down to :)

What are your thoughts on this?

Regards,
M&M
 
mary&mat said:
Hi again Daniel,

Re sellers market, yeah, it appears that's the case now.

However, if you purchase a good property, (fits your capital growth & other criteria) for what you believe is a fair price, at any stage in the market, you should be fine.

I would rather have a solid & proven performer (in my opinion this is a blue chipper), than a rural property. The rural may have great gains now & cash flow but the capital gain over the longer term is what I'm after. I don't believe the cap gain will be as consistent in rural areas. There's no shortage of land out there & this scarcity factor is one of the factors that makes inner city property more sought after & susbsequently drives the price up.

Go back to your strategy. You say you're after cap gain. Have a look over the rurals. Their gains are sometimes dependent on a single business or industry. They sound fine when you're presented with a (eg) 50% cap gain over the last few years, but how much growth have they had on average over a 10 or 20 year timeframe? (I will probably be chastised for these comments) Compare this to the blue chip gains over the same periods. Historically, the blue chips are more reliable & consistent.

I guess you could always hedge your bets & buy 1 blue chip & 1 in regional area?

I believe in that old adage, there's no way to really time the market, it's time IN the market that counts if you're chasing capital gains.

Which areas are you looking at now?

Regards,
M&M
Click to expand...

Caroline Springs 22kms from city as rural. :D:DThere have been recent sales of $1.1m and a couple of $900k around here lately. Not bad for rural
 
jacko18 said:
Hi my name is daniel
And i am looking to buy my first investment i work in the mines in wa
but from melbourne originaly been looking at the western suburbs because of affordabillity but dont care were just want the best investment and dont want to spend to much on my first have about 80 grand in the bank doesn't take me long to save would like some advise please i have talked to a lot of advisers but they seemed to want me to buy there stock any help would be great
Click to expand...

Hi Jacko
I would seriously take a look at any areas within 15km-20km of Melb where there is potential to develop/subdivide, 700 sqm2 - 3 unit site.

Broadmeadows today will set you back $420K it has had phenominal growth, with each auction I am seeing ongoing increases. I think Glenroy may be out of your price range possibly over $500K now.

I am told that builders and overseas investors are chasing these properties with plans and permits in place.

Purchase now and you will have the ability to add value regardless with many options, ie sell front property - keep rear and build, put together plans and permits and onsell or hold and build 3 -sell 1 keep 2, sell 2 keep 3, sell all. You could always just sit on it and watch your money grow.


Cheers, MTR
 
MC1 said:
Caroline Springs 22kms from city as rural. :D:DThere have been recent sales of $1.1m and a couple of $900k around here lately. Not bad for rural
Click to expand...
Approx distance from CBD:

South Morang - 23 km
Tarneit - 24 km
Caroline Springs - 25 km

I'd hardly call any of them "rural"!!
 
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