Forums / Property Investing / Help Needed! / Melbourne locations

Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of thelongroadthelongroad
    Member
    @thelongroad
    Join Date: 2010
    Post Count: 6

    Hello all,

    I'm an Aussie currently living overseas and looking to pour my savings into an investment property in Melbourne when I move there in a year or so.  I know almost nothing about Melbourne, so haven't even decided where I'll buy, so I have a few questions, unfortunately a little broad, but any help would be appreciated.

    If forum members were looking to spend about $500-600k on a freestanding house with reasonable immediate rental returns but strong capital gains potential, and even good potential for modest redevelopment, what would be a good choice?  Closer to town is better.  I've been told Preston and surrounds represents good value, though I see it may have had it's spurt already.

    My other option is to throw my deposit into something income-rich.  I see a lot of places in the city centre or nearby that offer attractive guaranteed returns.  Is there some kind of catch?  I presume capital growth potential is low for these kinds of places?  Would forum members recommend these kind of properties for easy, hassle free positive cash flow?

    Sorry, I know my questions are quite broad, but I'm starting from zero, I'm afraid.  Any pointers would be greatly appreciated.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Apartments offer lower capital growth.  It is best to invest in something that sits on its own chunk of land – meaning a freestanding house, or a townhouse (ie something which shares one or two of its sides with a neighbouring property), or a unit (a single-storey flat that has no flats below it or above it).

    Northcote is probably the most obvious choice for something close-ish to the city.  Depends if you want to live in it yourself later, and if so, what sort of property you want to live in.  Bentleigh is still affordable in your price bracket, and is quite close to the beach.

    There is also the option of buying two cheaper properties.  So maybe a house in Werribee and a unit in Brunswick or Coburg.

    Guaranteed returns are often dangerous, and  the return has already been added onto the purchase price.

    You also need to be aware of stamp duty.  Here is a calculator;
    http://www.realestate.com.au/cgi-bin/rsearch?a=calc&jar=StampDuty

    You'd probably also spend somewhere between $1000 and $2000 on solicitor fees, building inspections etc.

    If you are keen on building an extra dwelling at the rear of the property, or doing a large renovation or knock down and start again job, you could look at Sunshine or Altona

    By the way you might have an annoying challenge with finance when you get here, simply because you haven't been working in a job here for 12 months straight.  Keep local and foreign tax returns on hand.  That should get you around that hurdle.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of thelongroadthelongroad
    Member
    @thelongroad
    Join Date: 2010
    Post Count: 6

    Thanks Jac, and apologies for the slow reply.

    Finance won't be a problem, I'll arrange it from here before I leave.

    We'll want to live in it at some point, and the lady, who is from Melbourne, has ruled out Sunshine.  Altona might be OK, though I'm skeptical of the health effects of all that industry, past and present.

    Preston looks good – I can afford a nice size block of land up there.  Bentleigh I could probably afford a freestanding house, but on a much smaller block, with limited prospects for redevelopment.

    Any other suggestions?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi again

    Sounds like you want the place to be your family home.  What about Keilor East?  Depending on what you choose, there might be a little bit left over to purchase an investment property too…

    Glen Waverley is a nice suburb on the other side of the city.  More hilly and leafy. 

    If it is going to be your family  home eventually, it really depends on your lifestyle.  What kind of jobs you have and therefore what kind of transport links and freeway access you require.  What kind of sport and recreation facilities you want to be near.  What kind of school you want to send your kids to.  We'll all be happy to give you our thoughts on appropriate suburbs for you if you wish to share your requirements in this regard.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of AussieFlyAussieFly
    Participant
    @aussiefly
    Join Date: 2010
    Post Count: 8

    So what do people think are the pick suburbs of Melb with regards to investing.
    Anywhere for around the $300K mark??

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    AussieFly wrote:
    So what do people think are the pick suburbs of Melb with regards to investing.
    Anywhere for around the $300K mark??

    If looking in the West, Tarneit.  Due to receive a new train station on the Werribee Line at Williams Landing.  Due to receive another new station on a new section of line in Tarneit itself.  Expansion of Werribee Plaza on the horizon.  Loads of schools…

    Or you could take a punt on Laverton.  It is indeed going up in value due to its train station upgrade, and proximity to city.  It's still got a way to go in terms of cleaning itself up, however developers have already moved in and started work on building units and townhouses, so that is all underway…

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of AussieFlyAussieFly
    Participant
    @aussiefly
    Join Date: 2010
    Post Count: 8
    JacM wrote:
    AussieFly wrote:
    So what do people think are the pick suburbs of Melb with regards to investing.
    Anywhere for around the $300K mark??

    If looking in the West, Tarneit.  Due to receive a new train station on the Werribee Line at Williams Landing.  Due to receive another new station on a new section of line in Tarneit itself.  Expansion of Werribee Plaza on the horizon.  Loads of schools…

    Or you could take a punt on Laverton.  It is indeed going up in value due to its train station upgrade, and proximity to city.  It's still got a way to go in terms of cleaning itself up, however developers have already moved in and started work on building units and townhouses, so that is all underway…

    Do people think these places will rent though? I am have seen on API MAG that the rental vacancies of these places are bit high?
    This is my first Investment property and therefore cant afford for long term unrented..

    Profile photo of SashSash
    Member
    @sash
    Join Date: 2010
    Post Count: 91

    Have a look at Frankston and the infrastructure taking place shortly. Alot of growth and on the beach.

    Depends on what your after. I have purchased in central Frankston – with a large block that is being subdivided currently and intentions to build a 3 bed 2 bath townhouse/unit. Will be +ve cf after completion.

    Profile photo of never too latenever too late
    Member
    @never-too-late
    Join Date: 2009
    Post Count: 18

    Judging on performance, I think the Mornington Peninsula is most favourable on all accounts…..Skeptics  prove me wrong…..We have a lot to offer down here…I, myself have made a killing in a 7 yr period…..that's not to say you will……Persevere, and you have to wait……it will happen……….We have almost everything here except provissions for bored teenagers….It is a retirement lifestyle though.and we all reject  the notion of any corruption , any shape or form…..Stay away, go somewhere else if that is your intention,,,not here!!!!!!!!

    …..Our youngsters don't need this influence….they will go to the city for that….,,We can only protect them for sooooooooo long…and then it is up to them, and what they have learnt……They are today's MARKET…………Key is to be well informed…

    Jane, azzagirt

    Profile photo of benc10benc10
    Participant
    @benc10
    Join Date: 2009
    Post Count: 13

    Any thought of out to Melton, Kurunjang area good price for new homes not to far from melb cbd 45 min drive

    Profile photo of adelaide4569adelaide4569
    Participant
    @adelaide4569
    Join Date: 2010
    Post Count: 2

    If you're an expat living overseas, you'll be used to a certain level of comfort, I'm sure. If you intend to reside in the property you purchase (and you've already ruled out Sunshine), then I'm certain you'll rule out Melton and similar suburbs in the west. A family member built out there and doesn't like the area or the general demographics and is looking to sell up, at no profit.

    I'm very familiar with Brunswick/Coburg and someone's already mentioned it. Brunswick prices are through the roof,- you've missed that opportunity. Northcote is also very expensive. I would recommend the north-east as I used to live there and I honestly believe it's good value for money, hilly/green, good demographics/schools/shops, larger blocks etc. Look at suburbs such as View Bank, Watsonia, Greensborough, Yallambie, Bundoora. Rosanna is gorgeous but quite pricey as it's next to Ivanhoe, a fairly exclusive suburb.

    Jump on realestate.com.au and check out the surrounding suburbs.

    Profile photo of thelongroadthelongroad
    Member
    @thelongroad
    Join Date: 2010
    Post Count: 6

    Hi all,

    Thanks for your thoughts.  I've been looking at Yarraville/Fitroy/Seddon/Newport.  I think they have all the right potential for capital growth.  They've appreciated quite a bit lately, but I think there's plenty more potential in the long term.  You can't argue with liveable houses on 500sqm or more, less than 10km from the city for <$600k.  I think the appreciation over 10-20 years will be crazy.  I'm buying for the long term.

    As for luxury, I'm just a boy from the suburbs.  I have had an amazing lifestyle over the last four years here, and seen some amazing parts of the world.  But I've always known I'll be going back to Australia.  I'm looking forward to it, actually, I've had enough of where I am at the moment.

    I'd still consider something with amazing rental returns, but I do have an idea that a nice big block of land for great capital appreciation and/or space when it's time to raise a family.

    Does anyone here have any experience with multicurrency mortgages?  Particularly the tax implications?

    Profile photo of maree_bradrossmaree_bradross
    Member
    @maree_bradross
    Join Date: 2007
    Post Count: 401

    I really like the Kensington area for close to the city.
    We bought a property in Seaford 6 months ago and already the property has risen $30k just through rising entry level prices. Without including the upgrades we have made. Lots of changes planned for the area with the Frankston bypass as mentioned above and the new marina going in at Frankston.
    Seaford is a 1hours train ride to CBD (express) but has beautiful beaches and a nice little shopping strip

    Profile photo of BaysideBayside
    Participant
    @mornington
    Join Date: 2018
    Post Count: 64

    The Mornington Peninsula continues to perform really well. The 2nd strongest growth area in Australia for 2017/18. Mornington is the top growth area in Melbourne alone.

    Bayside

    Coastal markets 2019

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