Alright, I'll take the bait and stick my neck out
Melton.
why: pending approval of a specific building that will meet the needs of a certain rapidly growing demographic segment in Melbourne.Cheers,
The Y-man
Which area's in melbourne will go up in the next year or two?
- Thread starter very_ready
- Start date
Alright, I'll take the bait and stick my neck out
Melton.
why: pending approval of a specific building that will meet the needs of a certain rapidly growing demographic segment in Melbourne.Cheers,
The Y-man
Alright, I'll take the bait and stick my neck out
Melton.
Cheers,
The Y-man
Y-man, can I ask why it seems that everyone on SS seems to talk about the great investments being Melton, Frankston, Werribee, regional areas etc... and probably not even a handful who 'openly discuss' investing in premium suburbs? Is it because property investors on SS are generally cash yield investors? Have low purchasing power? To think that so many so called seasoned investors, with some possessing 30 or 40+ years of investing in property who go LVR 80% or even more to buy in the abovementioned areas says a lot about their success. I wouldn't be surprised if these guys end up having a net wealth less than the old lady who bought a house in Kew 30 years ago (fully paid off now) and that house is worth $3 or 4mil now.
I must have got my dates mixed up, is today October 31st? I forgot my Halloween costume... DeeHwa is dressed up as Shuttle Man.
Hi Shuttle Man,
I must say I don't fully understand the reasons behind the hype on the suburbs you mention - and I myself am not looking in these areas.
HOWEVER, in this particular instance, v_r is looking for what I would consider a speculative buy - i.e. very short term gain.
I found out from a friend that there is currently an applicaiton pending for an Islamic college and Mosque in Melton.
Should this be approved, there is a chance that our significant Islamic demographic may find this an attractive place to reside. My only reservation is that there may not be the relevant supporting services in place (eg Halal food shops, butchers etc) which I believe has been instrumental in driving up prices in suburbs such as Coburg, Reservoir, Preston and Fawkner.
Cheers,
The Y-man
Absolutely agree with Y-Man.
There's a lot of hype about those suburbs on this forum, and people get extremely offended / defensive when others raise doubts about the areas.
As I suggested many times, the mortgage belt is always going to be in these new suburbs, just as it was with Sydney. There's an article in the AFR today that makes mention of that (pg 7), though probably not many of the defensive people would read that paper anyway. Growth in these areas are probably least sustainable, making them an extremely high-risk proposition.
The suburbs may appear cheap to many investors here, but to a lot of the home buyers who are actually purchasing there, it's an extremely expensive investment for them as they are living on the financial fringe, cutting their spending enormously and are probably most prone to losing their jobs / income when things go bust. I know at least 15 people in these areas with over 90% LVR and are probably the most clueless people in life as far as managing their finances, careers or businesses go. One person I know just last month refinanced his 30k gain in Werribee PPOR out to waste on a holiday and pay credit card debts...
As for the gains, well I think there was a challenge laid down to me in around November 2009 to come back in half a year time to see if inner city has outpaced those areas. I don't think I need to wait that half a year to claim victory based on recent sales data.
So for me, it's an extremely strange proposition as it completely defies investment sense. It's what I call a high risk, low return area.
There's a lot of hype about those suburbs on this forum, and people get extremely offended / defensive when others raise doubts about the areas.
As I suggested many times, the mortgage belt is always going to be in these new suburbs, just as it was with Sydney. There's an article in the AFR today that makes mention of that (pg 7), though probably not many of the defensive people would read that paper anyway. Growth in these areas are probably least sustainable, making them an extremely high-risk proposition.
The suburbs may appear cheap to many investors here, but to a lot of the home buyers who are actually purchasing there, it's an extremely expensive investment for them as they are living on the financial fringe, cutting their spending enormously and are probably most prone to losing their jobs / income when things go bust. I know at least 15 people in these areas with over 90% LVR and are probably the most clueless people in life as far as managing their finances, careers or businesses go. One person I know just last month refinanced his 30k gain in Werribee PPOR out to waste on a holiday and pay credit card debts...
As for the gains, well I think there was a challenge laid down to me in around November 2009 to come back in half a year time to see if inner city has outpaced those areas. I don't think I need to wait that half a year to claim victory based on recent sales data.
So for me, it's an extremely strange proposition as it completely defies investment sense. It's what I call a high risk, low return area.
or rent for half the price, save the stress and invest in a better yielding asset class
There has been a lot of talk over the last 12 months about the planning pressures that an expanding population are placing on Melbourne. Most of the talk has centred on higher densities along train and tram routes. IMO, this increased density is certain, so perhaps looking towards property in the corridors that will later contain higher densities is a sound strategy?
Hi,
Would be interesting to know more about the $348,000 property in Fongeo Drive, Point Cook.
How big is the land, and is it a double garage ? Is the land facing T juction/incoming traffic ....
If that property, regardless of size of land is near the town centre or Palmer Road ( easy access to freeway and future William Landing station), I would think will be a good buy but I may be wrong.
Point Cook is a big suburb, I am not surprised if the council rename it to Point Cook South or Point Cook North/East/West etc.
Would be interesting to know more about the $348,000 property in Fongeo Drive, Point Cook.
How big is the land, and is it a double garage ? Is the land facing T juction/incoming traffic ....
If that property, regardless of size of land is near the town centre or Palmer Road ( easy access to freeway and future William Landing station), I would think will be a good buy but I may be wrong.
Point Cook is a big suburb, I am not surprised if the council rename it to Point Cook South or Point Cook North/East/West etc.
Not too many blue chips in this bunch....
Northwest suburbs top the chart in Melb
1999 to 2009
Broadmeadows $105,100 $357,500
increase 240%
Maidstone $155,000 $499,500
increase 222%
South Melb $340,000 $1,067,500
increase 214%
Footscray $195,000 $602,500
increase 209%
Sunshine $140,000 $426,000
increase 204%
Glenroy $153,000 $460,000
increase 201%
Keilor East $182,500 $515,000
increase 182%
Thomastown $142,000 $390,000
increase 175%
Yeah that's because they are all off very low bases and in % terms, in dollar terms there would be similar /and better results all around melb.
Ps I own in glenroy and broady
Ps I own in glenroy and broady
No-one else finds that rude? Everyone goes out of their way to get detailed answers to get that response. I know I wouldn't bother replying.
I don't know how I should be interpreting the figures you quoted....
Look all I can say is I remember my parents bought a flat in around 1997 for $75k or so and sold it in 2001 for $210k. It was sold again for $450k in 2009 as that person sold in that year.
Different time frame, and I think I picked up the late 90s boom in my period, but the flat went up 600% in value over 12 yrs (compared to your 250% or whatever it was over 10 yrs).
This was in Kew. Did I tell you we had awesome yields?
Look all I can say is I remember my parents bought a flat in around 1997 for $75k or so and sold it in 2001 for $210k. It was sold again for $450k in 2009 as that person sold in that year.
Different time frame, and I think I picked up the late 90s boom in my period, but the flat went up 600% in value over 12 yrs (compared to your 250% or whatever it was over 10 yrs).
This was in Kew. Did I tell you we had awesome yields?
