All Topics / Help Needed! / Buying in Melbourne

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  • Profile photo of James007James007
    Member
    @james007
    Join Date: 2007
    Post Count: 64

    Hi guys i just sold my PPOR on a sixty day settlement, i'm now looking at purchasing a property in need of Renovation on land big enough to subdivide and build a 3 bedder out the back. The areas i have been looking have gone up about 20% since the start of the year, there are heaps of buyers and not a lot of stock at the mmt, not sure if i should hold off buying and rent or to buy now?

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    I f you hold off, what are you hoping will happen?
    More stock, lower prices?
    Suburbs within 10-12 of cbd seem to be haing their own mini boom at the moment.
    Where are you looking?

    Profile photo of James007James007
    Member
    @james007
    Join Date: 2007
    Post Count: 64

    At the mmt demand is really outstripping supply which puts the ball well and truly in the vendors court, the area i'm looking at purchasing in has gone up by about 20% in the last 9 months. I was looking at purchasing a house to renovate for a quick sale and profit but in this current market thats not going to happen, given the increase in capital growth. So what to do?  i'm now looking at sites with possible sub division possibilites (battle axe block) so i can reno the existing house then build out the back. This would make it worthwhile although i still have lots of homwork to do costs etc

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    If the areas you are looking at have gone up by 20% recently, then either they are booming now or have almost run out of steam.

    It's your call, but you might want to look at other areas that haven't boomed and are showing good signs that they might.

    The strategy that you are wanting to do can work in virtually any suburb, so don't limit your view.

    Profile photo of James007James007
    Member
    @james007
    Join Date: 2007
    Post Count: 64

    Thanks for your repy Marc the problem with looking at other areas means buying further from the city than we want to live, i'm thinking rent where we want to live invest the money we have in a high interest account until we find a deal that looks good then buy.
    can rent for around $250 PW which will also enable us to save a lot more money than the $480 a week mortgage we pay now. Renting is always something i've contemplated whilst owing IP even though the rental market has jumped it still works out cheper to rent and own an IP than to have a home loan.

    Profile photo of propertypowerpropertypower
    Member
    @propertypower
    Join Date: 2006
    Post Count: 312

    Look for 'ugly duckling' close to the suburbs that have grown by 20%. Usually there is a ripple effect and these 'ugly ducklings' grow pretty fast as well.

    Profile photo of James007James007
    Member
    @james007
    Join Date: 2007
    Post Count: 64

    Thanks propertypower, yeah ugly duckling is great puts everyone else off!!

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