Hi all,
I just want to know whether anyone out there know about Tarneit, which is located in the western of Melbourne ?
A friend of mine told me about the Home&Land package in this area, and suggest me that this area has been (and will) grow very fast in the near future.
I personally have no idea about this area before, so can anyone help me find out more about this area ? Any comments would be very appreciated.
Thanks in advanced.
Hi Leo,
Best way to find out about Tarneit is to have a drive out there.
Advantages are that it is reasonably close to the city, affordable land and developing infrastructure.
Check out some of the estates on the net and try to find some more info.
Let me know if you have any more specific questions i may be able to help.Hi Leo,
I presume that you are looking at Tarneit as an investor with a view towards:
1. Capital Growth in your IP OR
2. Rental returns and CF+ OR a combination of both.Cap Growth is likely to be below average for the next few years in this area:
Construction activity [H&L packages ] is heavy along the Western corridor from Hillside [west of taylors Lakes] in the North, to Tarneit in the south [just north of Werribee].
In such a “green field” zone capital growth is a casualty; ie if you put your house up in the market for sale, a potential buyer will always favour a brand new house [H&L package] that is available nearby, at a better price. so you will have to drop your price to make it attractive.
This means your property is not unique / exclusive and there is a lot of fresh stock [new houses] coming into the market = low demand for your property.
the prices will start rising when the developments have been established and there is no other construction activity [H&L packages] available in the vicinity. that might take a few years in this case as there is heaps of undeveloped land in the area.
Typically the developer has made his money in the land development and it takes a few years for the premium to be diluted. it is only after this that you will start seeing any capital Growth.
Rental returns will be below average as potential tenant can buy rather rent [H&L package], location is not close to major arterials and area is typically first home buyers market.
with all this development happening the infrastructure is likely to suffer. .
IMHO this area is best suited for first home buyers.
as an investor try to focus in areas that are developed / unique/ exclusive/ have good access to transport and amenities. that is where you are likely to get CG and decent Rental returns.
Kattan
Dear kattan & juzza316
Thank you so much for your response. I think you are all correct about Tarneit. I would rather to invest somewhere else in melbourne…
My next destination probably would be “Monash area” on the south east area of melbourne, such as Mulgrave & Clayton.. Gonna look Bayswater and Boronia as well..
Once again, thank’s guys..
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