which one in western suburbs:melbourne

[Lily House]

Thanks for your time and opinion Elwood or bust

Lily

 

[investwest]

Have you been down there recently?

Hi everyone,

As someone who grew up in Altona, I couldn't resist adding my bit. Altona is definitely a strange one. Bayside and close to Williamstown, but still very daggy and working class. There is not one single trendy cafe in the whole suburb (believe me, I've looked). But, it does have the beach, and anything close to the beach has shown good growth over the last 10 years. Houses on the Esplanade go for around the million dollar mark these days. A few professionals starting to move in now (god knows where they buy their lattes). Will never be like Williamstown in my view as no period housing and too much industry.

All in all, I would say good prospects of solid growth over the medium term, especially near the beach. But as I have already said before, why even think about buying in Melbourne right now - we've just seen the longest boom since the war. If prices go up more than a percentage or two in the next couple of years, it will be unprecedented. After the last boom (which was smaller than this one) prices in Melbourne didn't go up for five years. Sure, it might happen. But shouldn't investors deal in likelihoods? Remember that the property market is cyclical. If prices stay the same and you're negatively geared, that's called losing money. Be very careful.

Good luck everyone

Gail (and I am not a gunna - just circumspect and a keen observor of history)

Hi, I find it really hard to believe that you have been down to Pier street in the last couple of years, latte city now, especially on the weekends, or market day (Tuesday), really good mix of people, and trendy cafes popping up all the time. Go have a look because I find it really hard to believe that you have, you've got Creme, the Pier Lounge, Mosaic, those are what I would call trendy, then good cafes but not so trendy, Melissa's, Pepper's, Artichoke and the bike cafe I've heard is really good. Also Railway parade is going through a gentrification process at the moment, about to be developed, watch it will do what Yarraville did, slowly they start, then they all come,give it a couple of years.

 

[Bayside]

Hi Lily,

Re Mordialoc, this suburn extends quite deep inland I believe and you will note a large discrepancy between the prices on the beachside of Mordi and the more inland areas. I would stick to the beachside, and yes i think mordi is ok, but only because it is coastal and that is the current boom trend.

Having said that, again, I stress that mordi des not have the long term growth history of coastal suburbs closer to the city. Yes short term the growth may be bigger in mordi as it plays catch up, great if ur a property trader, but long term, it wont stack up against the inner suburbs on the beach...Albert Park, Middle Park, Elwood, Brighton, all the way out to say Sandringham, though i like Mentone due to the scenery. Mordialloc is a bit more blue collar as we get closer to industrial parks etc.

Its a tough game property if you try and pick a suburb that has only started to appreciate but will continue to do so, as they are doing in previous posts in this thread. But it can be easier if you stick to suburbs that have a long history of growth, even if they are not coastal.

Thats intresting your view on Mordialloc in 2003, go for a walk down Main St now and you will see a new bridge, new cafe's, wine bars & new appartments. Mordialloc has really changed into a hip vibrant suburb. In the 90's my Grandma used to say you could shoot a bullet down Main St on a Saturday afternoon and you wouldn't hit anyone. Not now!

 

[our obsession]

....and just for fun, decade median house price growth for some of these suburbs, 94-05 and 97-08.

ALTONA: change 94-05: 191% ............97-08: 213% ..Growth Per Annum for 97-08: 12.1%

ALTONA NORTH: 94-05: 172%................97-08: 227% ..GPA 97-08: 12.6%

ALTONA MEADOWS: 97-08 only: 138% ..GPA 97-08: 9%

ARDEER: 94-05 change: 126%.........97-08: 150% ..GPA: 9.6%

BRAYBROOK: 94-05: 236%...............97-08: 266%..GPA:13.9%

BRIGHTON: 94-05: 203%.................97-08: 256%..GPA: 13.5%

CARLTON: 94-05: 114%..................97-08: 211%....12%

CARLTON NORTH: 97-08 only: 183%....11%

ELWOOD: 94-05: 204%.................97-08: 234%.....12.8%

ESSENDON: 94-05: 192%...............97-08: 231%.....12.7%

HAMPTON: 94-05: 220%...............97-08: 289%.....14.6%

KENSINGTON: 94-05: 185%............97-08: 198%....11.5%

MENTONE: 94-05: 185%................97-08: 227%.....12.6%

MORDIALLIC: 94-05: 182%.............97-08: 246%.....13.2

SANDRINGHAM: 94-05: 169%..........97-08: 188%.....11.1%

SEDDON: (less than 10 sales)....94-05: 218%....97-08: 207%....11.9%

SPOTSWOOD: 94-05: 232%..........97-08: 242%........13.1%

TOORAK: 94-05: 175%..................97-08: 210%......12%


Source: Victorian Valuer-General Statistics 94-05 and 97-08.

 

[imonmyway]

I bought in Altona 4.5 years ago and have had about 50% capital growth in that time so very happy with this its my PPOR so I am a bit biased about Altona and the 30 minute drive to the CBD every morning and 20 minutes drive home in the afternoon makes me happy every day for my location of purchase.

A 3 story apartment complex of about 20 units with a shop front is being built on Pier street near the old mitre 10 which has now also closed.

Most of the businesses on pier street between the railway line and grieve parade which was a group of mechanics shop and semi industrial workshops have mostly shut and are being sold and or demolished, sadly the old nissan hut was pulled down too. I can see this strip turning into modern shops resteraunts, cafes and apartments in time. Cherry Lake facilities and landscaping is also getting a million dollar upgrade over the next 18 months.

 

[enricofermi]

I bought in Altona 4.5 years ago and have had about 50% capital growth in that time so very happy with this its my PPOR

Is the figure of 50% capital growth after all costs, rents, outgoings etc are taken into account? I'm guessing you negatively gear.

Regardless, 50% is great. Well done Sir!

 

[traveller]

Well Done.

Although i think if one bought at that time anywhere in Melb. in the First Home Buyer range which at the time would have been 250k to 350K you would have made 50% by now.

My example i bought in Greensborough in Apr 2003 for 265k. It will sell for 400K anytime in todays market. It was an average house and an average deal. Nothing special about it and no renos done.

I am strong believer in a "particular deal" and NOT "hot suburb" etc theories...If a deal is good for that suburb i will buy in any suburb of a capital city of Australia...

My 2c.

I bought in Altona 4.5 years ago and have had about 50% capital growth in that time so very happy with this its my PPOR so I am a bit biased about Altona and the 30 minute drive to the CBD every morning and 20 minutes drive home in the afternoon makes me happy every day for my location of purchase.

A 3 story apartment complex of about 20 units with a shop front is being built on Pier street near the old mitre 10 which has now also closed.

Most of the businesses on pier street between the railway line and grieve parade which was a group of mechanics shop and semi industrial workshops have mostly shut and are being sold and or demolished, sadly the old nissan hut was pulled down too. I can see this strip turning into modern shops resteraunts, cafes and apartments in time. Cherry Lake facilities and landscaping is also getting a million dollar upgrade over the next 18 months.

 

[kql]

Just a quick comment regarding Ardeer. I was looking at Ardeer for my first IP last month and was really interested until an agent told me the railway line was not electrified yet!! That comment put me right off Ardeer. I think that you can get decent rental yields in Ardeer but CG won't take off until if/when the railway line is upgraded.