Why not Preston?

[rednut]

I'm interested in buying my first IP, with a capital growth strategy in mind, and am drawn to Preston due primarily to the fact that Northcote and Thornbury are becoming very expensive, so I wonder if the next suburb in line to shoot up in price is Preston.
When doing a search on the forum, many people have recommended against it but not really given reasons why.

My reasons for are:
Next to more pricier suburbs
Close to the CBD
Good public transport links
Good amenities
Undergoing gentrification

Could people give me their reasons why it's not as good as I think it is it is??

 

[jpcashflow]

Hi

Hi,

I think you are asking a very good question, why not Preston?
Like many areas, it used to have some sort of bad stigma... but over the years demographics have changed and they are continuing to change in a positive manner.

Others areas like Northcote and Coburg have become out of reach for many people and I also think Preston is a area to will get allot of attention in the near future.


Allot of people hold on to the past and only make descions in buying in a area when its already too late.

Cheers

 

[The Y-man]

When doing a search on the forum, many people have recommended against it but not really given reasons why.

To keep competition out

Anyway, if you like the area in terms of location, returns, demographics and the numbers work, go for it!


The Y-man

 

[Dbz_Vic]

Agree with Y-Man (maybe not the keeping competition out bit ), fundamentals are most important but i also like Preston as a suburb, i shop there a lot and haven't heard anything "bad" about the area at all. I would live there myself if my better half would let me. As mentioned its surrounded by suburbs priced higher and yet its only about 8kms from CBD with a very multicultural character. I bought in Preston last year and has seen decent growth but yields have fallen lately due to the influx of investors. Houses with land component (around 500m2) are getting pretty expensive ($700k+ to $1mil+) and there is a lot of underquoting so really depends what you are after.

 

[kmrr]

i just asked this question in another thread but maybe its best to ask it here:

when looking at preston do you think it is a buy and hold suburb or is there scope for equity creation through development?

Has anyone had experience doing a development in this area and what were the council like and did they make you jump through any hoops?

KR

 

[Dbz_Vic]

i just asked this question in another thread but maybe its best to ask it here:

when looking at preston do you think it is a buy and hold suburb or is there scope for equity creation through development?

Has anyone had experience doing a development in this area and what were the council like and did they make you jump through any hoops?

KR

I personally think buy and hold would always do well there, and also know a developer who purchased 2 x old properties on 500m2 blocks (corner block, 2 street access) for $1.2million in 2012 with plans already for development and they built 5 townhouses on it. Project completed first quarter this year with townhouses priced at $530k-$560k in 2013, but not sure what sort of profit they made all up.

Edit: These same townhouses are valued at $580k now.

 

[tone1]

If you can afford Preston it is a great suburb, but its rapidly gentrifying and thus prices are pretty up there now.

 

[rednut]

The problem is I generally can't afford Preston, except that I saw a ex-housing commission house for sale cheaply, quote 390-430 for 3Br. Block small compared to others at 320sqm.
Wondering if anyone has an an opinion on these houses? There's a lot in the area and some have been really spruced up quite nicely, but wondering if the capital gain will be poor because of perceptions of these houses?

 

[The Y-man]

The problem is I generally can't afford Preston, except that I saw a ex-housing commission house for sale cheaply, quote 390-430 for 3Br. Block small compared to others at 320sqm.
Wondering if anyone has an an opinion on these houses? There's a lot in the area and some have been really spruced up quite nicely, but wondering if the capital gain will be poor because of perceptions of these houses?

They used to sell for $140k~$160k back in ye olde days when I was looking there around 2005....

The Y-man

 

[tone1]

The problem is I generally can't afford Preston, except that I saw a ex-housing commission house for sale cheaply, quote 390-430 for 3Br. Block small compared to others at 320sqm.
Wondering if anyone has an an opinion on these houses? There's a lot in the area and some have been really spruced up quite nicely, but wondering if the capital gain will be poor because of perceptions of these houses?

If a conversion is going to succeed, it will be in an inner-city area like Preston. $390-$420 for 3br is very cheap for the suburb, even at 320sqm if it has been renovated.

If you find yourself priced out of Preston, look at the next suburbs in terms of distance - Reservoir, Coburg North and Pascoe Vale.

 

[daniellee]

Even a housing commission unit can be a good purchase if it is in a good location, etc. I looked at Preston some time back and found it a nice suburb, especially the parts near the train station and shops. End up buying in Glen Huntly in the SE suburbs.

About two years later I bought in Noble Park which is quite a working class area, and once again there are desirable and not so desirable parts of the suburb.

So just know where the desirable parts of Preston are and focus your attention on there. Buying in those parts at a price you can afford is better than buying in no so desirable parts; the growth will show for itself.

 

[kmrr]

Even a housing commission unit can be a good purchase if it is in a good location, etc. I looked at Preston some time back and found it a nice suburb, especially the parts near the train station and shops. End up buying in Glen Huntly in the SE suburbs.

About two years later I bought in Noble Park which is quite a working class area, and once again there are desirable and not so desirable parts of the suburb.

So just know where the desirable parts of Preston are and focus your attention on there. Buying in those parts at a price you can afford is better than buying in no so desirable parts; the growth will show for itself.

I'm rather unfamiliar with the area but I think it is a good place for me to start looking into. Can you give me any tips as to where you think are the better places/streets/locations to begin looking into?

 

[tone1]

Based on my knowledge of Preston, the best sections are:

- anything south of Bell Street, specifically the section between Bell St, High Street, Albert Street and Dundas Street (best section due to border with Thornbury, but $$$)
- properties near Gilbert Road north of Bell St but not too close to the cemetery (tram line, cafes on Gilbert Road in northern part of Preston)
- section between Bell Street, Murray Road, High Street and Albert Street

People who are more familiar with the suburb can correct me if I'm wrong.

 

[Dbz_Vic]

West Preston is pricey, and south of Bell for reasons mentioned above. However from what I see every time I drive through there Preston is pretty good, there really isn't a teriible spot. Maybe if you are right on Albert St which gets very busy or right next to Northland, the area seems a little more untidy.

 

[Coota9]

Lived in Thornbury for 16 years and in that period annual compound growth has been 12%.
Believe Preston and Reservoir are both good areas,Thornbury got the price ripple from Northcote which I believe will happen to Preston and Reservoir

Coota

 

[rednut]

so the day before auction the price range was increased to 410-450.
Passed in at auction on a vendor bid at 430.... but its now re-listed at 495... (its unrenovated)
This kind of stuff has been written about a lot.... but what a waste of time!!!

 

[kmrr]

I went for a little drive around Preston yesterday to get an idea of what the area is like.

the streets South of Bell street off and around gilbert were certainly nice than those of the same north of Bell. from what little I saw there were more trees and less run down houses. Beyond regent street I think it wasn't so nice. again I say this having only had a general look at the area.

post my little excursion I had a look at High street Thornbury and was rather impressed with what I saw. It was obviously a reason for and part of the reason Thornbury has come up.

this did however have me asking the question: What is Prestons answer to High Street Thornbury? While I mainly drove up and down Gilbert and along Bell I was unsure as to where they could create an equivalent type retail strip that would make the place more desirable.

Has anyone got any ideas?

 

[tone1]

There's restaurants and bars popping up on Plenty Road and High Street just before you hit Bell Street when traveling north on both roads. This is the southern section of Preston, bordering Thornbury. This is what is making that section of the suburb very desirable.

Gilbert Street (north of Bell, bordering Reservoir) has a few cafes and IMO is more value for money while still being near some lifestyle options, trains, trams. The streets off there are quite nice as well.

Auction results for Preston are always impressive though, doesn't look like houses sell for sub-600K anymore in the nicer sections, renovations are going for high 600K's/low 700K's in those sections. Hot market right now I think.

 

[pasey25]

this did however have me asking the question: What is Prestons answer to High Street Thornbury? While I mainly drove up and down Gilbert and along Bell I was unsure as to where they could create an equivalent type retail strip that would make the place more desirable.

Has anyone got any ideas?

high St. in Preston surely? its the same format, just needs the gentrification of the retail to continue north.

 

[dubsey]

this did however have me asking the question: What is Prestons answer to High Street Thornbury? While I mainly drove up and down Gilbert and along Bell I was unsure as to where they could create an equivalent type retail strip that would make the place more desirable.

Has anyone got any ideas?

Some examples of gentrification already in progress

1. Chew burgers on Plenty road before Bell St. $15 for a burger & people are buying it.
2. Racoon bar on Plenty road before Bell St.
3. Great Lebanese bakery on High St, North of Dundas & south of Bell, the owner has spent a bit of money sprucing the shop up, go and try their food, you will love it.
4. Boundary Espresso on Plenty rd, south of Bell. Go sit and have a coffee on a weekend and observe the crowd.
5. A lady has rented a large retail space on high st, south of Bell, an old gym. She plans to open a Delicatessen / health store.

Some other factors that make Preston attractive IMO.
- Council has plans to pour a lot of $$$ in improving the junction where Dundas, high and plenty rd meet. That small pocket will become a major pedestrian and retail zone.
- You have two trams and a train line servicing the suburb, not to mention bus service.
- A very decent bike path on St Georges road.
- People are being priced out of Thornbury.

This was sold on the weekend, a townhouse, nice place but still exceeded my expectation of what it sold for.

http://www.realestate.com.au/property-house-vic-preston-118218903