where to buy ip in melbourne for 500 k or less

[jacko18]

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.

To Wobbycarly
I can do that for you its been a while since i went to school and im always in a rush sorry.

 

[mary&mat]

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

Inner city...blue chips....Paddington etc

What you've summarised above is sound...it looks like your mind works itself up into a frenzy when you start to think about where to buy & confusion is the result

I believe you will be fine.

Regards,
M&M

 

[Ski-bum]

Daniel, wondering how you are going with the investment choices? It's been about a month now, so am assuming you have been in the mines and back online soon?

Interesting thread as we are going through these questions at the moment for IP2. So many options and decisions to make, and we've found we can convince ourselves into one strategy over another quite too easily! Inner city Vs outer city, house Vs apartment, established Vs OTP, Melb Vs Bribane!

I think this thread really highlights the magnitude of questions and confusion that a new investor has. I'm sure most of you seasoned investors can remember this stage of your journey. Loving everyone's sound advice and patience.

and yes, full stops and enter keys will be fantastic Daniel

 

[mary&mat]

Just read another thread (think it was BigTone) saying it's easy to get caught up in analysis paralysis!

 

[mattnz]

Check out this for a steal

This looks like a whole lot of house within 20km of cbd, great price, plenty of room for capital growth and renting with 6% return.

http://www.domain.com.au/Property/For-Sale/House/VIC/Seabrook/?adid=2008318421

 

[mattnz]

or this one...

Here is another McMansion 22km from CBD for 410-440k
http://www.realestate.com.au/property-house-vic-tarneit-106415316?activeSort=price-asc

The cost to build this would be:
Land $240k
Build $300k+
Interest cost during construction $20k
Replacement cost $560k+

Due to tight land availability in Tarneit and surrounding suburbs, land prices just shot up. I purchased there 8 months ago, 540 sqm for $140k. You can't buy 540 sqm these days for less than $200-210k.

There seems to currently be a significant discount on existing stock compared to the equivalent cost to construct. This creates an inefficiency which should see great value for those buying existing houses now.

 

[BayView]

best investment to me would be the capital growth but one thing that is a issue well a bit of a worry is that at the moment yeah I'm on 150k a year but in 4 or 5 years when iget back to Melbourne I'm not going to be on that money so I'm worried about if say i have 4 properties or how many it is will i be able to afford it just unsure on the strategy i should use because I'm keen to get started

My fatherly advice would to be always hope for the best, but prepare for the worst.

So, this means; assume your $150k income may not last. And it may not - GFC last year for example put a lot of high flyers into reverse.

Therefore, invest with the mindset that you need to have the cashflow attached to it, as well as the potential for cap growth. This will immediately change the way you search.

On your current income, it may be a good idea to try to find something which can be sub-divided later for increased return, but if you've not bought anything so far, maybe start with an easy one like a normal house or townhouse, and make sure it was built after 1987 so you can maximise your depreciation deductions.