With $250,000,where should I buy in Melbourne ?
- Thread starter thyechen
- Start date
Is 250k the amount of cash/deposit you have or the total you have to spend?
If it is the later you may want to look at units in Footscray or Albion as well as the areas mentioned. You could also possibly get a 2 bed villa unit in ST Albans as well.
You can also get a 3 bed older house in Hoppers Crossing for that money.
Wherever you are try to be close to a train station.
cheers
RightValue
If it is the later you may want to look at units in Footscray or Albion as well as the areas mentioned. You could also possibly get a 2 bed villa unit in ST Albans as well.
You can also get a 3 bed older house in Hoppers Crossing for that money.
Wherever you are try to be close to a train station.
cheers
RightValue
Confused Investor
I'm currently reading a book called "The Next Property Millionaire". In that book the author talks about his strategy and that is to buy undervalued property (10-20% below market), 3 bedroom house, fix it up a bit, get it revalued and then use the equity in that to buy the next ip then repeat, repeat, repeat, etc. I don't really know how realistic that is for our situation because 1. undervalued properties are hard to find 2. I'm no handy man so any diy really isn't an option for us 3. we were leaning more towards an inner city apartment 10km from the CBD. The strategy has worked for the author but might not be right for us.
So my point like the original poster is where would you invest $250,000 in Victoria? Inner city, outer suburbs, rural? House or unit? 1 or 2 bedrooms?
Our aim is to buy and hold and repeat the process, so capital growth and a modest yield to service the cash flow are our primary goals.
I'm currently reading a book called "The Next Property Millionaire". In that book the author talks about his strategy and that is to buy undervalued property (10-20% below market), 3 bedroom house, fix it up a bit, get it revalued and then use the equity in that to buy the next ip then repeat, repeat, repeat, etc. I don't really know how realistic that is for our situation because 1. undervalued properties are hard to find 2. I'm no handy man so any diy really isn't an option for us 3. we were leaning more towards an inner city apartment 10km from the CBD. The strategy has worked for the author but might not be right for us.
So my point like the original poster is where would you invest $250,000 in Victoria? Inner city, outer suburbs, rural? House or unit? 1 or 2 bedrooms?
Our aim is to buy and hold and repeat the process, so capital growth and a modest yield to service the cash flow are our primary goals.
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Oh I do like those suburbs - but I like them in order. For example I prefer Coburg close to the train station and amenities over a unit in Glenroy with similar characteristics. The question is that if I find a unit in Glenroy that I kind of like and it meets my criteria, do I buy it or hang out for a better property in Coburg to come along??? That's my real dilemma I guess...
Thanks.
Andy
Hmmm probably no black and white answer to a question like that.
If you're looking at multiple suburbs, seriously looking, and your reasons for focusing on these suburbs is consistent, then you might as well get the one in your example, in Glenroy. As long as it ticks as many boxes as possible.
It's fun isn't it
If you're looking at multiple suburbs, seriously looking, and your reasons for focusing on these suburbs is consistent, then you might as well get the one in your example, in Glenroy. As long as it ticks as many boxes as possible.
It's fun isn't it
The old part of Deer Park.
With 250K to spend, Frankston/Frankston North and Melton are (to me) the best options. I'll be buying in one of those areas with a preference at the moment for Frankston.
You can easily buy a 3 bedroom property on a decent sized block in Melton and Frankston North for 250k or less and with a little more trouble in Frankston.
There is so much infrastructure developments and gvt spending in both areas (read the threads here) that CG and rental demand/yields are likely to be very good.
You can easily buy a 3 bedroom property on a decent sized block in Melton and Frankston North for 250k or less and with a little more trouble in Frankston.
There is so much infrastructure developments and gvt spending in both areas (read the threads here) that CG and rental demand/yields are likely to be very good.
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Yeah, even though I'm not too familiar with Melbourne, I would say Melton too. It seems to tick all the right boxes.
Decide on the demographic of your ideal tenant and buy something they would want to rent, where they want to rent it. I dont think you have to be too particular about the exact suburb, just the region. For example if you decide you want a student as a tenant, the prime requirment would be close to the uni. If you decide a blue collar worker and his family is the ideal tenant, buy a house in an area reasonably close to industry. Single young professional, look at an apartment nearer the city.
All suburbs in Melbourne will apreciate in value over time. They just have different times that they peak. Right now suburbs that attract FHB are booming while more expensive areas are very slow. So maybe it is a good time to buy a property aimed to rent to an executive. But $250k probably wont buy it.
So dont bother getting hung up on which suburb Reservoir or Glenroy is better. They are both fine. As is every other suburb. Look at the actual deal and will it suit your tenants and your needs.
All suburbs in Melbourne will apreciate in value over time. They just have different times that they peak. Right now suburbs that attract FHB are booming while more expensive areas are very slow. So maybe it is a good time to buy a property aimed to rent to an executive. But $250k probably wont buy it.
So dont bother getting hung up on which suburb Reservoir or Glenroy is better. They are both fine. As is every other suburb. Look at the actual deal and will it suit your tenants and your needs.
Great advice peastman,
There is such a thing as information overload!
With $250,000 to spend I would look for a one bedroom unit with a car space and a logical floor plan in an inner suburb. You are most likely to experience great capital growth over time, and can also either add value by renovating or generate some equity for future purchases by paying down the loan.
One thing that has helped me is to think in terms of multiple properties. (Courtesy of Alex Lee) Rather than aiming to buy 'the one perfect investment property' think in terms of buying multiple properties over time. As Jan Somers says too, the 'perfect investment property' is a myth. It doesn't exist. That doesn't mean don't be choosey and select as well as you can, but just don't get hung up on getting everything right in the first deal or the second, third, fourth, fifth etc......
I nearly fell into that trap when I bought a terrace house in an inner Melbourne suburb before the mini boom in 2007. I wanted off street parking - the house I found didn't have it. I nearly didn't buy it. Delaying would have cost me $150,000 in immediate equity.. The agent I bought from told me several months later that a number of people knocked back that property for the same reason I nearly did and are now kicking themselves. I learnt a lot from that!
Regards Jason.
you hit the nail on the head, who in their right mind is going to sell a property 20% below market value?
second how many properties can you service on your wage? you can buy only so many houses before you can't afford to hold more.. this is where these strategies fail.
Generally when you buy cash flow positive properties, they lack the opportunity for growth, but allow you to buy more of them, or you buy capital growth properties, which cost you to hold, and then your income becomes the limit.
It also depends on how much cash deposit you have.. redrawing equity simply increases your debt, hence your interest payments.
So all though you can use this strategy to buy IP's, its not just that you can simply keep on buying endlessly.
I've been looking at investing in Melbourne so am interested in this thread. Does anyone know:
- what rent return (% and $amount) you could expect to get?
- Vacancy rate - in some of these suburbs there seems to be a lot of houses available at the moment with incentives such as Myer vouchers for tenants to sign up?
- Type of tenant - short term, stable, likely to cause problems?
$250k will buy a lot of things in a lot of areas; what is your strategy?
The buy-and-hold-and-never-ever-sell theory?
Something to improve and resell / refinance quickly?
Are you looking for a PPOR?
Or something that can be say, rented by the room or with a self-contained flat for increased yield?
Maybe something with subdivision potential?
Something else altogether??
A few more hints for us all might be a little more helpful... It's not all just about location
Agree with James. Some great ideas already given above from others by way of location, however you need to be clear on what type of asset you are looking for.
Are you after yield? Are you speculating on growth? Are you after value add (to create and force growth) implicating a house on development zoned/sized land.
How much cash shortfall could you endure (negative gearing).? What's your strategy moving forward from this purchase? Sit and wait? Reno and reval to manufacture another deposit to go again?....etc., etc.
Are you after yield? Are you speculating on growth? Are you after value add (to create and force growth) implicating a house on development zoned/sized land.
How much cash shortfall could you endure (negative gearing).? What's your strategy moving forward from this purchase? Sit and wait? Reno and reval to manufacture another deposit to go again?....etc., etc.
It'll cost ya....
Absolutely, however before I can share that information, you'll need to graduate from my platinum " Property Top Guns Exposed" homestudy.....for a handsome fee of course
I'll have all of the above thanks Michael. Can you organise it by the weekend thanks?
Absolutely, however before I can share that information, you'll need to graduate from my platinum " Property Top Guns Exposed" homestudy.....for a handsome fee of course
That's the strategy we've adopted for our first IP. Now it's just a matter of finding the one that ticks as many boxes as possible.
i bought a 1 bedroom unit in newport in january of 2009 for 190k. that was my entry point.
can get it revalued 6 months later now for 215k.
i have done nothing. But when i bought the owners were desperate to sell due to a margin call on shares, and i was offering a very short settlement with a larger deposit, to cover there short fall.
best of luck.
melton looks cheap... dont know enough about it though.
can get it revalued 6 months later now for 215k.
i have done nothing. But when i bought the owners were desperate to sell due to a margin call on shares, and i was offering a very short settlement with a larger deposit, to cover there short fall.
best of luck.
melton looks cheap... dont know enough about it though.
