VIC $450-$500k investment property in Melbourne

Hi all,
I'm looking to buy investment property between $450-$500k. Melbourne seems to be less riskier compared to Brisbane. Sydney can't really get anything for that price. Ideally want rent close to $400.

I've done research and it seems my options are:

A. Eastern Melbourne seems to be preferred area to live in. However, have to go as far as franston. Can get either townhouse or really old house in that price range and have to push to early $500s.

B. West Melbourne has few options will and there are some suburbs like Werribee which will has house left in that price range.

If taking 10 year horizon, what is better buy?
Look in East for smaller place or go house in West?

 

Personal preference in this order - house (with good land component) > townhouse (small land component) > unit/apartment. Reason being over time it is land that appreciates in value.

So I would suggest a house out in the west with as much land component as you can that fit your budget. Maybe something that you can do some simple cosmetic reno on which you can then add some value.

Werribee is not a bad option as it will also benefit from Avalon airport turning into an International airport. But keep in mind it is pretty hot on the ground at the moment in the west so good luck with the competitions

 

You can think of Cranbourne West. Still you may get a few old properties around $500k range with big block of land i.e., 500-600sqm.

 

The Geelong area is also worth a look.

 

Isn't it a bit late to enter Melbourne market when it's almost near peak or rather at the peak?

 

I would buy a period style 1 bedroom unit in Elwood.

 

With caution. It’s a flood prone area, oversupplied, may be tricky to get finance if too small and many buildings have major capital works requirements.

 

How do you pick if suburb is in flood prone area? I would expect that would not get called out in building inspection.

 

Look at any planning scheme overlays.

 

I mainly deal with new estates so I can advise you on those. If you wanted to go down that route then consider Mickleham, Donnybrook, Wyndham Vale, Werribee, Rockbank, Thornhill Park, Wollert, Melton South. Geelong area is good as well depending on the suburb.

South-eastern estates have already boomed so not much growth left there.