Wyndham Vale/Truganina/Tarneit Precinct.

Hi, I am interested to know the Melbourne investors' opinion on the areas in the Wyndham City Council, i.e. suburbs like Wyndham Vale, Truganina, Tarneit etc. Terry Ryder of the Hotspotting.com.au suggests this region as a major growth area. He is of the opinion that the population in this region is growing very fast and clubbed this with the amount of infrastructure and funding thrown in this region (including a Railway line), this area is set to become a good performer.

Thanks to the first home buyers grants and the similar incentives given by both the state and the federal governments in the last year, the prices of the real estate in this region has soared termendously. I remember about a year or 2 ago when I bought a property in Melton, I was thinking of buying one in Wyndham vale as well but it unfortunately I didn't buy anything in Wyndham.

Now after all this time, when I am looking again at this area, the prices have increased about 30% on the land being sold in this region.

Even though the long term demographic trends of this area appeals to me but I am a bit sceptic whether it is the right time to buy here or not, whether I have already missed the boat or shall I still jump in?

Furthermore, I wish to know about the rental prospects in this region, I had a look at the rental section on the RE website and there were plenty of adverts.

So, I seek guidance from the investors in this region to throw some light on the issues reaised above.

Please advise me if I should buy into this area which and Where is preffered place to buy,

- Which is the best choice- Wyndham Vale, Truganina or Tarneit ? ... or something else.

- Shall I buy in the brand new estates or the established housing (if any).

I will greatly appreciate your feedback on the issues raised above AS WELL AS anything else you feel relevant.

Thanks again.

Regards,

ANISAVVU
 
I was looking at a house in Williams Landing (next to Truganina) early this week and below are the thoughts of couple of property managers in the area:

- rental is slow in the area beacuse it is still developing
- too many properties available to rent
- big Investors purchase land in bulk and bulk of new rentals come in the
market at the same time.
- capital growth will be slow
- ave $10 rental increase per 2 years
- ave vancy rate is 6 weeks and if still vacant will put on rent special
- better off buying in an established area
 
I was looking at a house in Williams Landing (next to Truganina) early this week and below are the thoughts of couple of property managers in the area:

- rental is slow in the area beacuse it is still developing
- too many properties available to rent
- big Investors purchase land in bulk and bulk of new rentals come in the
market at the same time.
- capital growth will be slow
- ave $10 rental increase per 2 years
- ave vancy rate is 6 weeks and if still vacant will put on rent special
- better off buying in an established area

Thanks for the input, I had a look on the rental availability as well, there are lots of them available.

I was also considering Brookfield/melton area and the rental availability there is quite tight. I think, I need to carefully consider the rental situation before making a decision to jump in.

Have you make any more observations about this area in general, What do you think about its' future prospects, Will it be a great investment 4 or 5 years down the track ?

I am asking all these questions because, I don't live in Melbourne. I am also planning a trip to Melbourne to have a good look on the area.
 
We drove through Wyndham Vale last week. At first we weren't sure where we were... desolate area with a bunch of new builds and nothing else. I turned to hubby and said 'Geez what is this hell-hole'? 2 seconds later we passed a sign 'Welcome to Wyndham Vale'.

Maybe CG in these places is good in the long long term, but I would be concerned about getting tenants in the meantime. It's a personal opinion, but to me, new estates like that suit first home buyers who want their 'piece of Australia'. They'll make it a great place in years to come, but if I was a tenant I'd rather pay a few dollars more and go into Werribee or somewhere else with facilities.
 
facts not right

There will be a train station in Whyndham, Tarneit and Deer Park ... scheduled 2010-2011 ... we all know what happens when transport improves.

See link for manor Lakes ... I was there before Christmas and there is a shopping centre, Schools and set around a lake ... plenty of people milling about http://www.manorlakes.com.au/

There are many estates within each suburb (at least 10 in Tarneit alone) so I would be careful which estate you choose ...

When there are a lot of rentals ... dig a little and you find very small homes asking overinflated rents ... choose a decent design around 200m2 with 4 bedrooms and double garage and it should rent easily for $300 - $320 per week

Melton is another good location as they have hospitals, 22 schools and heaps of infrastructure already there ... but again be choosy on which new estate.
There is talk of electrifying the train line ... but I will believe that one when i see it

Problem with buying established is you pay additional stamp duty and a profit to who built in the first place so if you can hold and wait 5 months for the construction of brand new ... then it is worth it
 
Williams Landing is an interesting case - the estate itself constantly sells out and the purchasers are mostly 2nd and 3rd time buyers who in turn are building large homes.

We were looking for land in December 2008 the going price was $200k for ~ 630 m2 the latest release which was closer to the new train station and town centre the similar size blocks where selling for $300k+ less than 2 years later.

See - http://forum.homeone.com.au/viewtopic.php?p=423327#p423327

A little annoyed we didn't take the plunge and buy in the estate but still ultimately happy with our decision to purchase in Point Cook which has seen similar but not as great price increases over the last 12 months - approximately $50k on top of what we paid.

The average price in Point Cook is about $220k for 512m2 or $250k for 600m2
 
Bought 2 in this area

Hi, I have bought 2 properties around this area in the past year.

Living in Sydney, the ability to buy a 540 sqm block of land 20km from the CBD for $140k it seems incredible value.

I was actually approached to do a wrap deal for someone with bad credit. They got the $32k FHOG to use as a deposit on a $344k house (200 sqm turnkey high spec home) in Tarneit.

It gives me a guaranteed tenant and a significant cashflow positive result (even without the depreciation benefits).

The house will be finished next month and land value has already gone up $25k+

I have also bought in the new Wyndham Harbour Marina. Stage one of this development sold out without any advertising. Huge demand for it.
 
Hi, I have bought 2 properties around this area in the past year.

Living in Sydney, the ability to buy a 540 sqm block of land 20km from the CBD for $140k it seems incredible value.

Sydney and Melbourne are different markets. It is dangerous to simply assume it is 'incredible value' just because it costs far more in Sydney. Most often than not, cheap will always remain cheap.

I was actually approached to do a wrap deal for someone with bad credit. They got the $32k FHOG to use as a deposit on a $344k house (200 sqm turnkey high spec home) in Tarneit.

It gives me a guaranteed tenant and a significant cashflow positive result (even without the depreciation benefits).

The house will be finished next month and land value has already gone up $25k+

I have also bought in the new Wyndham Harbour Marina. Stage one of this development sold out without any advertising. Huge demand for it.

I am very bearish on these types of developments. History has proven that these outskirt estates have been poor investments from a capital growth perspective. I come from the school of thought that it is almost impossible to make money out of bargain hunters. Remember, people are buying in this Wyndham Harbour Marina because of your so called 'incredible value'. When you come to sell it, the purchaser would also think the same. Remember, there was huge demand for places like Caroline Springs and Point Cook when the first stage opened. Look at where it is now?

Sure, you have a harbour Marina in Wyndham, but it is still miles away from the city (still the no.1 factor affecting property prices) and this will never change (unless Werribee some how becomes the capital of Victoria, haha)

Just my opinion.
 
Actually studies have shown outer suburbs get higher growth in percentage terms than inner city.

When the rail links are formed, these will be desirable places to live. New estates with great amenities, at a price people can still afford.

Melbourne and Sydney are definitely different markets. In Sydney you pay $300k for 540 sqm in an average (equivalent) area 40km from the CBD. In the future however, the gap will close. This is why these parts of Melbourne represent much better value.
 
I should also add that areas like Palm Beach, 40 km from Sydney CBD has done very well the past few years with some of the highest house values in the country.

Resort style towns with great facilities within commutable distance from the CBD are highly desirable and have great growth potential. Wyndham Harbour only has approx 240 blocks of land in total. 70 sold immediately in stage 1 release and there are many already waitlisted awaiting stage 2 release.

It is definitely a location where demand is much higher than supply. Scarcity and a new Marina development are sure to increase prices in this suburb, only 30km from the CBD.
 
Actually studies have shown outer suburbs get higher growth in percentage terms than inner city.

When the rail links are formed, these will be desirable places to live. New estates with great amenities, at a price people can still afford.

Melbourne and Sydney are definitely different markets. In Sydney you pay $300k for 540 sqm in an average (equivalent) area 40km from the CBD. In the future however, the gap will close. This is why these parts of Melbourne represent much better value.

Can't disagree with the greater % growth terms. I tend to value absolute growth terms more (I disagree with anyone saying 2x300K houses = 1x600K house).

I am not too familiar with the Sydney market and its values but I still uphold my belief that Sydney property should theoretically (unless there is a huge paradigm shift like Melbourne's population exceeds that of Sydney - could happen in 20 or so years, major head quarters and industries become based in Melbourne and not Sydney) be greater than Melbourne. If the gap does close, wouldn't you think that Sydney property would 'correct' itself upwards?
 
I should also add that areas like Palm Beach, 40 km from Sydney CBD has done very well the past few years with some of the highest house values in the country.

Resort style towns with great facilities within commutable distance from the CBD are highly desirable and have great growth potential. Wyndham Harbour only has approx 240 blocks of land in total. 70 sold immediately in stage 1 release and there are many already waitlisted awaiting stage 2 release.

It is definitely a location where demand is much higher than supply. Scarcity and a new Marina development are sure to increase prices in this suburb, only 30km from the CBD.

The other problem that is unavoidable, is the fact that this is located in the west. Now even in % terms over the past years, western suburbs perform poorly against eastern suburbs. I am not a fan of Frankston and have made it pretty clear on SS, but if I HAD TO live in a new marina type development and my life depended on it, I'd go Frangers over Wyndham purely because of the stigma attached to the west.
 
Hi DeeHwa,

I agree that traditionally the East has outperformed the West in terms of percentage growth overall, the issue is the massively expanding population of Melbourne cannot be pushed further out Eastward places like Pakenham are already around 40kms out of town.

So two things will happen:

1. higher density in the east - no doubt about this it is going to happen whether the save our suburbs people like it or not.

2. A push westward with urban infill projects like Williams Landing, Point Cook I can only speak anecdotally but both of my neighbours grew up in the Mentone area.
 
The past is not a predictor of the future.

If all the infrastructure (train lines, shopping centres) gets put out in Western Melbourne...the money follows. This is why the West is now primed to move quicker. Frangers explode because of the Expressway....

Bear also in mind that courts ruled that the urban boundary cannot be extended so essentially any land in the Melbourne catchment is going to go up.

In case you think that there is plenty of supply developers have cottoned on...and they are only releasing land at a trickle....the other reason is that there is not enough labour to build all the homes even if land was released quicker.

I think there a acticle recently in the Herald which said people priced out of Brunswick and Pacoe Vale are now moving to Sunshine and Broadmeadows.

The other problem that is unavoidable, is the fact that this is located in the west. Now even in % terms over the past years, western suburbs perform poorly against eastern suburbs. I am not a fan of Frankston and have made it pretty clear on SS, but if I HAD TO live in a new marina type development and my life depended on it, I'd go Frangers over Wyndham purely because of the stigma attached to the west.
 
A friend just signed a contract and paid the deposit for a house land package in Wydnham Vale for 260k...land size of approx 400 sqm. The place he bought will be within walking distance to new proposed train station.

The agent we spoke to last night suggested that price of land have already gone up by 20k over the past month.

After reading the post, I agree with most with new areas...it might take a while before we will see major capital growth...also not exactly sure when the exact time the train station will be built.

The one thing as an investor we consider is return...with a property like that...although relatively cheap, it is still negatively geared.

Also the fact that so many new houses are built...will demand cover the supply? If I were to purchase there, I'd want to be sure my place will not be vacant!

Does anyone know what are the rental yield and the vacancy rates in areas around Wyndham Vale?
 
You may have a look at sqmresearch.com.au and look at the vacancy rates for postcode 3024.

I want to buy in the Wyndham precinct, i.e in Tarneit, Truganina, WyndamVale etc. but one can see lots and lots of properties for rent at the realestate.com.au, and this fact is holding me back.


I live in Sydney and by Sydney standards, the brand new house and land packages are quite cheap in this area. BUT I am really concerned about the rental vacancy in the short to medium term especially when the new house and land packages are being sold in heaps.

As far as rental vacancy is concerned, Melton, Brookfield etc seems to be fairing better.


Secondly, take the words of a real estate agents with a grain of salt, when they say that the prices for the land have gone 20k higher in the last month alone. We are talking 15% CG in one month, so you may well imagine that the agent is Bu!!$#!t&. OR probably Wndham Vale has been selected by Hollywood to shift the entire film industry, if this is the case, I am not aware of this.

Sanjeev
 
Ok i just got back from visiting a friend in Wyndham vale... unreal... they have their own coles, aldi, woolies etc. And it looks better planned than Cairnlea, Caroline Springs (really narrow bendy streets). I was almost ready to put a deposit down for one of the houses open 5 houses down from her. I have to stop visiting people's mansions when I am nesting. Maybe it was her house but wow people have 3 living areas!
 
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