Thanks everyone for feedback. I will visit Melbourne shortly with further visits as required over next couple of months and need to narrow to 2 to 3 search areas. I would have purchased in 2009 but spent that time (maybe too much) acquiring two Sydney properties. It then took 4 months to get current finance approval due to no employment income as I am in between businesses/jobs. However I have sufficient capital to cover any extra costs above rentals. I am probably over exposed with property in my portfolio and always have been. However two of my properties are commercial and I have a small share portfolio.
So I'll check out Ascot Vale, Kensington & Brunswick areas.
Does anyone have any further thoughts on the three areas below which have had some positive comments on this forum:-
*Carlton/Fitzroy
*Prahran/South Yarra/Richmond (Thanks Giddyup)
*Ormond/McKinnon/Bentleigh (I suspect more expensive however could stretch my budget to around $1M)
Harry
Hi Harry,
I've only started investing in properties in 2005, so my experience is still at the infant stage. I don't know too much about your personal circumstance and investment strategy, so please take my comments with a grain of salt.
You may want to have look at the suburb profiles before you get down to Melbourne:
http://www.rs.realestate.com.au/cgi-bin/rsearch?a=sp
http://myhome.myrp.com.au/showProductDetail.do?reportTypeId=1&propertyId=
As you know, early (before march) 2009 would have been a better time to purchase in Melbourne. Melbourne property median prices has gone up by 18.7% in the last 12 months. (according to RPData:
http://www.rpdata.net.au/) It would be highly improbable that this growth will continue, so you need to consider why Melbourne now. (Having said that being a long term investor, I am also looking at investment properties in Melbourne).
Being overly exposed to one investment class is not really an issue as long as you are aware of the ramifications and manage it accordingly. (one major issue being the lack of risk diversification, as you are subjected only one industry, and vulnerable to industry specific influencers/factors.) But you were not asking for financial advice, so I will let you think that over yourself
Keeping in mind your criteria:
1, $700-900K
2, High capital growth
3, House (not strata)
4, with 5-10km of CBD
5, Limit to 2-3 suburbs
*Carlton/Fitzroy
Great areas, well developed, good infrastructure/amenities/transport, close to city. There is lygon street in Carlton which is THE PLACE to go for Italian food. Trendy. Fine dining and coffee culture. Carlton is very close to the University of Melbourne - always demand for rental. Fitzroy is a bit quirky/alternative with some fantastic period homes. However, they come with a price tag - may be difficult with the current budget. I suspect Brunswick will have a better growth potential. However, Brunswick is a bit more towards the alternative/arty/hippie side (no offence).
*Prahran/South Yarra
Probably as trendy as you will get in Melbourne. (but probably not as good as it used to be). You have Chapel street - posh/classy shopping, fine dining, coffee. Close to pretty much everything you would want in terms of entertainment (food, cinema, shopping). Properties are very high in demand. Quite a built up/dense area. Again houses are going to be expensive.
*Richmond
I have separated it from Prahran and South Yarra, because they display different characteristics. There are different pockets of Richmond. Being so close to the city, apartments are building up. There's lots of development going on. There's bridge road for the weekend budget shopping. Victoria Garden shopping centre (home of the only IKEA in Melbourne). There's also pockets of different ethnic background displaying cultural diversity and fantastic exotic food along Victoria St (mainly vietnamese). But be careful with some seedy pockets of Richmond.
*Ormond/McKinnon/Bentleigh (I suspect more expensive however could stretch my budget to around $1M)
They are a bit further away from the city. Well established residential area - family oriented. Relatively close to the beach. Growth rippled from brighton. If you are interested in this type of area, you can consider Murrumbeena as well.
I don't really have anything bad to say about these areas as they are all good residential locations. I would be happy to live in any of these suburbs. However, in terms of investment, you will need to consider capital growth and how much you can afford. These areas are quite established and high in demand - not quite the "ugly ducklings" I tend to look for (e.g. Brunswick and Yarraville).
Best of luck
Kenny
