VIC 4 bedrooms IP in Braybrook VIC

Discussion in 'Where to Buy' started by jimkee, 30th Apr, 2018.

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  1. jimkee

    jimkee Member

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    Hi, I have been lurking around PC for a while to seeking advices.
    I am considering invest my first IP in Braybrook. I have recently looked up an off-plan 4 bedrooms townhouse with land size 340ish in this area. And it priced 500k - 550k.
    The price seems really good comparing other properties at the market at the moment.
    But considering Braybook isn't a good area (crime rate, no major facilities)compare to maidstone or west footscray or sunshine. I dont know if it is a good area to invest.
    Also things what concern me that why the price for this property is cheaper than others. Is it because it is a off-plan property?I have heard that some developer rip the contract after development completion if the price is much higher than what it is sold.
     
  2. Cimbom

    Cimbom Well-Known Member

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    I would avoid that area personally. I would look for somewhere closer to infrastructure (particularly a train station) and other amenities like shops, etc. Also you will get far better value for money buying an older townhouse than buying off the plan as you are paying a premium for the fact that it is new.
     
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  3. jimkee

    jimkee Member

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    Thanks for you advice Cimbom.
    Could I ask why invest an old property is far better than invest into an off-plan one?
     
  4. Cimbom

    Cimbom Well-Known Member

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    In most cases, developers will charge you more for a property when you buy off the plan because the property is new. Older properties are usually cheaper and if you do any kind of renovations then you will make instant capital gains. New properties have CG built into the increased price so it will generally take longer to realise any growth in value.
     
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  5. melbournian

    melbournian Well-Known Member

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    because there is room to add value - sub division, renovation which you can manufacturer CG.
     
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  6. MikeyBallarat

    MikeyBallarat Well-Known Member

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    There are two things going against this:

    1. The area. Braybrook is conveniently close to the city, but is much rougher than Sunshine and West Footscray, and has much worse public transport and local services. You have touched on this.

    2. The property type. New properties are, generally speaking, a bad investment. Usually the amount you get stung buying a depreciating asset new is more than any repairs on an older property. Land content is also low, and it’s the land that appreciates in metro Melbourne not the house.

    See if you can find a free standing weatherboard home on 600m2 in St Albans if you can stretch the budget a little more.
     
  7. jimkee

    jimkee Member

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    Thanks all your replies. Looks like investing into an off-plan property isn't a smart move at all.