where to buy ip in melbourne for 500 k or less
- Thread starter jacko18
- Start date
I wasn't ...........
Ok I'll disagree
We have an apartment on Danadenong rd (almost across the road from the one advertised).
Never vacant - rarely get to see inside it (next tenants always ready to go in)
Plenty of street parking for guests in the nearby streets.
Rare for anyone to need 2 cars assuming they are working in town - tram stop is outside the door.
As posted previously, (ours is 1BR) - bought in 2001 for $160k, currently $350-ish
PROVISO: our apartment faces the back of the development, and the driveway is accessed from the side street, not Dandy rd, which makes getting in/out easier.
The Y-man
Thanks Y-Man
Even if we disagree, it's always good to have another angle on any situation, especially from someone more experienced than myself
Side st acccess is good & makes up for the main rd thing. Don't know if I'd wanna live on the roadside if there's a tram going 'ding ding' at 6 in the morning (admittedly haven't used pub. trans in ages so I really don't know if trams do that anymore?)
Also like MTR's development angle - def an option if you're up for it? (Bit advanced for me yet).
So Daniel, have you narrowed it down any more yet?
Regards,
M&M
Even if we disagree, it's always good to have another angle on any situation, especially from someone more experienced than myself
Side st acccess is good & makes up for the main rd thing. Don't know if I'd wanna live on the roadside if there's a tram going 'ding ding' at 6 in the morning (admittedly haven't used pub. trans in ages so I really don't know if trams do that anymore?)
Also like MTR's development angle - def an option if you're up for it? (Bit advanced for me yet).
So Daniel, have you narrowed it down any more yet?
Regards,
M&M
Relax M&M, I'm not wanting to string you up by anything.
I wouldn't class any of the three areas Daniel mentioned (South Morang, Tarneit or Caroline Springs) as rural, but if you do, then that's your opinion and fine by me.
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
thanks Mary mat yeah have not narrowed it down yet be in Melbourne in 4 weeks so going to see a company called property planning Australia a buyers agent independent they charge a fee not commission i cant do it myself to far away only week of every four weeks i need to for my first i now i want one inner suburbs leaning towards small house if i can might push me towards seedon kensington don't now do you think id go better somewhere like south yarra Richmond with a unit i appreciate your help i was also wanting to now buy talking to you people i can tell you started getting investments in the inner suburbs not in the last couple of years you may have bought there recently my question is for somebody like me how am i going to be able to keep investing when say i have 3 inner suburbs properties interest rates are at 10 % or more that's probably about grand out of my pocket yes i can afford it now but i don't want to stay here in port hedland forever working 4weeks on i want to be back at the mcg watching the kangaroos Howe will i afford I'm thinking maybe ill get two then ill be stuck
hey mtr yes have definitely have seen how broady has done buy reading it has gone up heaps i think i will have to maybe buy outer suburbs later on just because i don't want to be to negative geared but do you think it will double again in broady in the next 10 years i now its more then doubled in the last 10 years but yes i think i might have to look out that far in the future unless there is another way and there might just be thanks for your thoughts
That's an interesting perception. I would have thought inner city yields would be much worse (i.e. more negtively geared) than outer city.
Cheers,
The Y-man
Hi Daniel,
Good you're looking ahead now as to how you'll move forward when you have eg 3 inner city properties
I like your positive thinking!You say you know you want an inner city property & it sounds like you're tossing up b/n Seddon, Kensington & Richmond, South Yarra? Ok, so stick with these 4 suburbs for now.
This choice is completely up to you. I don't think anyone here would tell you what to buy, only offer our suggestions as to what we may do in similar situation eg I prefer Richmond & Sth Yarra b/c I'm more familiar with these areas. I travelled them to go to school when I was younger & I've seen the changes over time. I've walked these streets & I personally like these areas & believe they appeal to a particular type of renter...even though I wouldn't live there myself. Someone may prefer Seddon etc b/c they have properties & are familiar with that area & the numbers stack up for them.
Check out the cap growth for the past 10, 20 years, also rental returns over the same period. I guess in Richmond you have to be careful of the zoning (I'm not up on this). I wouldn't want to purchase in a commercial area in case a factory or business goes up next to my property.
Once you've got some actual figures to go off, you can then make an unemotional choice as to which property is better for you dollar-wise. I think even if you're using a buyers' agent, you really need to know prices etc yourself so you know whether a deal they're bringing to you is actually a good one rather than one they just want to offload.
Maybe, sit down & work out your approximate tax return from a negatively geared property. This will help you establish how much each property is going to cost you per wk eg one of ours (after the tax benefit) costs about $26 a wk to hold. (Do you know how to do this? I had someone show me & it really helped amke me realise it was do-able). If interest rates go up, I believe rents will too, so this will help with your servicability. Do these figures on 10% interest rates also so you know where you'll stand if this scenario comes to pass.
But, yes, if you're employing a capital gain stratgey to grow your portfolio, there may be a few stalled years where you're waiting for growth to allow you to borrow more. This is why I believe people here prefer to throw in a cash flow proeprty to their portfolio to help with servicability etc. & future purchases.
Are you ok with waiting a few years while your properties grow in value?
I don't presonally believe rates will hit 10%. I think there will be another mini GFC stemming from what's going on in Greece at the moment. But that's just my theory & others have a different view. I prefer to remain optimistic. ie if there's another crash, it's good for me! I believe it's good to be aware of this, but I don't like to listen to too much negaticity or I would never have bought at all! (Yes, it's usually the ones who have NO properties that tell you all the reasons why not to do it!)
So, what's your next move young jedi?
Oh yeah, it's more fun watching the Pies than the Roos
regards,
M&M
No sorry MC1, I wasn't referring to you. I was just adding South Morang and Tarneit to the list, of which you posted as not being "rural"; I was agreeing with you.
Cheers monopoly, I misunderstood your post
Hi Daniel,
Good you're looking ahead now as to how you'll move forward when you have eg 3 inner city properties
You say you know you want an inner city property & it sounds like you're tossing up b/n Seddon, Kensington & Richmond, South Yarra? Ok, so stick with these 4 suburbs for now.
This choice is completely up to you. I don't think anyone here would tell you what to buy, only offer our suggestions as to what we may do in similar situation eg I prefer Richmond & Sth Yarra b/c I'm more familiar with these areas. I travelled them to go to school when I was younger & I've seen the changes over time. I've walked these streets & I personally like these areas & believe they appeal to a particular type of renter...even though I wouldn't live there myself. Someone may prefer Seddon etc b/c they have properties & are familiar with that area & the numbers stack up for them.
Check out the cap growth for the past 10, 20 years, also rental returns over the same period. I guess in Richmond you have to be careful of the zoning (I'm not up on this). I wouldn't want to purchase in a commercial area in case a factory or business goes up next to my property.
Once you've got some actual figures to go off, you can then make an unemotional choice as to which property is better for you dollar-wise. I think even if you're using a buyers' agent, you really need to know prices etc yourself so you know whether a deal they're bringing to you is actually a good one rather than one they just want to offload.
Maybe, sit down & work out your approximate tax return from a negatively geared property. This will help you establish how much each property is going to cost you per wk eg one of ours (after the tax benefit) costs about $26 a wk to hold. (Do you know how to do this? I had someone show me & it really helped amke me realise it was do-able). If interest rates go up, I believe rents will too, so this will help with your servicability. Do these figures on 10% interest rates also so you know where you'll stand if this scenario comes to pass.
But, yes, if you're employing a capital gain stratgey to grow your portfolio, there may be a few stalled years where you're waiting for growth to allow you to borrow more. This is why I believe people here prefer to throw in a cash flow proeprty to their portfolio to help with servicability etc. & future purchases.
Are you ok with waiting a few years while your properties grow in value?
I don't presonally believe rates will hit 10%. I think there will be another mini GFC stemming from what's going on in Greece at the moment. But that's just my theory & others have a different view. I prefer to remain optimistic. ie if there's another crash, it's good for me! I believe it's good to be aware of this, but I don't like to listen to too much negaticity or I would never have bought at all! (Yes, it's usually the ones who have NO properties that tell you all the reasons why not to do it!)
So, what's your next move young jedi?
Oh yeah, it's more fun watching the Pies than the Roos
regards,
M&M
hey m&m yeah dont now how to figure out my tax with negative gearing yeah i dont mind stalling for a few years as long as ive got 2 to stall with yeah i had a look at the latest your investment mag shows 10 year growth growth yeah all good for all the suburbs i have been looking at some better then others but all 10 % or over seen a residex report sad richmond south yarra seddon kensington forcasting all 8% or over most of the ineer suburbs looked good
i ment exactly what your saying ineer suburbs are more negative geared so if i have a few in the ineer suburbs fair bit of money coming out of my pocket but will most likely make morehard to keep a hold of on average wage though
Im also worried as well at if i should be lookin at brisbane seeing that melbourne is booming now and a post i read on here about forget melbourne were to buy now i now its long term but what would be the smart thing to do comeback to melbourne when it settles look at a brisbane i also worry to much
I would go Brisbane at the moment, but others are spruiking the possible benefits of Perth too....just to add another city to the mix....and to your confusion, sorry
Daniel, I think you are answering your own questions & then going on to doubt your answers to those questions...what would really help you to decide?
Regards,
M&M
Hi Jacko,
You mention that you are from Melbourne and at some point you may not be earning the same income as in the mines. Would you move back to Melbourne at this point and would you plan on moving into this property?
Hey Melbgal no probably wouldnt defenitly wouldnt in the ineer suburbs would be to much repayments probably rent with friends or buy house and live with mates make them pay the mortgage ha ha
I would go Brisbane at the moment, but others are spruiking the possible benefits of Perth too....just to add another city to the mix....and to your confusion, sorry
Daniel, I think you are answering your own questions & then going on to doubt your answers to those questions...what would really help you to decide?
Regards,
M&M
I now im answering my own questions dont now what would help me decide crystal ball ha i just now melbourne but dont now perth but im thinking brisbane might go up like melbs did and melbourne doesnt sound good to buy at moment not much chance of getting something undervalued or getting something that is the right value more likely its worth more then what it should be then scared now growth for a while i have thought about your question i realy dont now with brissy do you now any good suburbs to look at
Jacko this is an interesting thread, and I'm following it closely, but, and no offense, but can you please use some "." and "Enter" in your posts? They are a bit hard to read.
