im looking at buying very soon, what areas in melb r best to buy around the 450k under bracket, r areas like melton etc on the rise, is there any growth out dandenong, cranbourne way etc or is outer east like ringwood, croydon ect a good place to buy.
Hi Dellas,
All the areas you mentioned have shown pretty good capital growth.
In selecting an area to purchase, you have to conduct thorough research into the area. This includes demographics, geographic location (in relation to the city), past capital growth, government funding and infrastructure, etc. All this together with your gut instinct will help you decide on the best location that will suit your numbers.In saying that, once you have decided on a location you should take your time and be an expert in that suburb and 2-3 suburbs surrounding it. This will help you narrow down the search and possibly identify a "good buy" in and around the area you have been researching into.
Cheers.
Hi Dellas,
You might want to have a look at the NAB residential property survey. They seem to be saying that demand for inner city low rise apartments and townhouses is strongest.
Obviously, you don't want to take this for gospel and be aware that they are talking about current demand which may not be in the same place as longer term demand.
I'm thinking a land grab out near the beach in Frankston and look to sub-divide.
This will allow you to take advantage of plenty of Government spending on infrastructure.Time it right, & you might just be able to take advantage of selling in summer, near the beach, right around when the RBA cuts interest rates. Just a little extra bit of extra cream on top<br /
;-)” title=”>;-)” class=”bbcode_smiley” />Dellas,
Very difficult to give you an answer without knowing if this is for yourself to live in or an IP.
If for yourself, then do you have children? Do you work in the city? Etc, etc, etc. This will change everything.
Ok, so I’m going to assume this is an IP. For $450k you could buy a unit, appartment in Surrey Hills or Balwyn. There is excellent capital growth in these (blue chip) suburbs and you are targeting young professionals. Hold on to it for a year, then do some renovations and you should have yourself a very nice little earner.
Alternatively (as I’m out in the eastern suburbs), $450k will get you a decent 3 bed house in Croydon or Bayswater, with the potential of subdivision. You need to be careful about your target audience though as this is mainly a family area (e.g. no one wants 1 bathroom).
It really depends on your strategy. Some areas have great capital growth but terrible vacancy rates (ie high). Are you looking to do a buy hold and rent … or a buy add value and sell?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Dellas,
We can all proffer our opinions but at the end of the day we are not the one's stumping up our hard earned.
I never recommend investing on a tips. In making successful investments there is really no substitute for doing your homework.
I suggest you seek professional advice or get busy reviewing available data such as: http://services.land.vic.gov.au/landchannel/content/guide and numerous other sources.
dellas .. the good news is there is no correct answer where will be the BEST invest.
property remains a social transaction. So there are things you must look out for .. and keep in the know with.
One big development thats on the go is the development of the secondary deep port facility in Hastings. Thats a big drawcard and the land and units around there are still VERY affordable. The usual good criteria apply .. buy with good transport .. buy with location in mind .. buy with value in the deal.
One development NOT happening at the moment is the proposed Marina in Frankston. Due to economic climate .. lack of ability to borrow (insert excuse here). But Frankston is a great social place during the daytime. It has issues at night. But it also suffers badly from a tyranny of distance compounded by a connection system with a tollway. So it has limits on movement because of the limits placed on social activity.
Another thing to do is to follow the money trail to work out why one area IS in demand and another not so sought after. The availablity of top class shopping centres has made the areas near them increase in value dramatically. The first home buyer is still out there and looking for value. And he/she is being pushed further and further out. The money trail means that middle class buyers / upper crust buyers have a little more price flexibility and movement than other channels.
These are all things to consider and factor in. If you want to invest in an area .. pick four or five suburbs. And then study not only the particular suburb .. but the area around it. No suburb stands alone.
The misconception is that property always will go up. I'm already seeing a few areas that are heading down. It takes time and social pressues but you gotta see when the area is going well and has potential … or is going bad and .. becoming undesirable.
Research is your key. Talk to real estate agents .. who HAVE to know their area. Get a feel for whats going on. And then you can make the best calculated judgements.
Now, this is just an opinion.
Buy landed property as close as you can to the CBD.
Ideally the property should be located close to public transport and other amenities.
Is Trugnina a good area, close to city and reasonable? Transport not good, but might be developing.
Dellas,
Consensus here is correct in relation to YOU MUST DO YOUR HOMEWORK. I also agree that you must chose an investment property based on your investment strategy (whatever that may be).
However, I do believe there is a right and a wrong answer. This is the reason few are successful and lots are not.
I think the worst thing you can do as an investor is to sell. If you want to make money out of property, you need to own lots of them. Selling your property incurs agent fees, legal fees and CGT. Why would you waste that money?
Secondly, I believe you always want to get your property positively geared. This is almost impossible to do straight away and may take a year or so if you have value added through subdivision or renovation and longer if you have not. Whilst negative gearing has some tax benefits, this limits what you can borrow for your next investment and also takes money out of your pocket each month. This is not a sustainably strategy and only really suitable for people who want to buy one property every 5-10 years as a nice little security blanket for when they retire.
These are all things to consider.
im wanting to buy with my gf, she lives out dandenong way and wants to buy a house and land package around lynbrook/lyndhurst area, is this a a good area? i have 120k saved.
dellas wrote:im wanting to buy with my gf, she lives out dandenong way and wants to buy a house and land package around lynbrook/lyndhurst area, is this a a good area? i have 120k saved.A friend once recommended that I look in those areas, back when I was looking for a first home. I don't know much about the area, but if you see that there's still heaps of new houses coming up (and space for plenty more), beware of possible over supply in those areas. If there are many similarly new houses in the same area, your capital growth is likely to be constrained for some time.
If you are considering Lynbrook or Lyndhurst, have you considered Dandenong itself? What about Berwick? What about Springvale or Springvale South, both of which have lower vacancy rates than all the suburbs mentioned prior? When you're looking for a property to buy in a particular suburb, look into the vacancy rates of that suburb at SQMResearch. Go for suburbs with low vacancy rates at 2% or below. If there's demand in your area, it will improve the prospects of capital growth.
Do you absolutely need to buy a brand new house (and hence go for house and land packages) or would you be comfortable buying into a structurally sound 1970s brick house that has potential for improvement? It is also difficult to judge your budget simply by the amount you have saved, because we do not know how much debt you'd be comfortable to have and what you can comfortably repay. Have you consulted with a few mortgage brokers to see what their recommendations are?
;-)” title=”>;-)” class=”bbcode_smiley” />
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