VIC Any suburb within 330k budget

Hi all,

This is my first post and hoping to get some advice with purchasing my 2nd investment property. My exisiting IP is in Tarneit.

I have been approved for 330k, but I don't necessarily want to spend that much.

As a single mum within the lower income bracket, I think something with a high rental yield and steady capital growth would be safest for me. I am open to any area in Melbourne within 30km radius of the CBD.

The areas I've been told to look into are:
- Laverton
- Hoppers Crossing
- Werribbee
- Tarneit
- Point Cook
-Truganina

Or is it even worth looking towards Brisbane properties?

I don't think I can afford anywhere else.

What are your thoughts?

Thank you in advance!

 

Hey there @Kt88 , good on you.
I'm not familiar with any of those markets, particularly Tarneit - never heard of it - but happy to learn some new places.

If you're more familiar with other areas, it might be worthwhile using your local knowledge to pick an area in that price range that you think has the potential - going on its past performance and location of it's cycle - to give you what you want in your chosen strategy.
Brisbane in general might be a good choice, but by the time you choose an area and gain a local knowledge of that area, you might miss the properties in your price range.

 

Why must it be within 30km of CBD? Why not head down the highway to Geelong? I think it would be worth considering the major regional cities if you're after yield.

 

Frankston
But more than 30km from CBD ...
Has a beach though

 

Hey there, be free to consider a unit in noble park or Dandenong - achievable in this price range with prospects of positive capital growth and good yield.

Cheers Ivan

 

Thanks! I get what you mean.
I just feel like if I focus on areas I'm familiar with I might miss out on other better opportunities I haven't gone out of my way to discover!

 

I've considered Norlane and Corio, the only worry I have is the tenants I'll have due to the socioeconomic status of that area.

 

Agreed

Also check out Carrum Downs

 

I used to live in Chelsea, but that's out of my budget. How are suburbs from Carrum to Frankston? Like Seaford? Any potentials there?

 

Hoppers and Tarneit also have some serious SES issues. $330k will get you a better property in Corio / Norlane in comparison to Hoppers / Werribee area. Both are bad areas but your better property in Corio might attract better quality tenants than your crappier property in Werribee. Just a thought.

 

Seaford is ok but you might struggle at that budget if you want a house
Personally I'd just go with Frankston, more established shops and amenities, great beach too

 

Where exactly are you getting this info from the devil??

 

Issues with Corio and norlane is industry in Geelong..

 

Work in Hoppers and live in Geelong: There are some huge social issues in both areas. I think you're splitting hairs by saying Corio/Norlane is worse. It might be, but I wouldn't think it would be by enough to make a huge difference in the tenant risk profile of the area. My post is a theory I have and I would be curious as to your thoughts?

Obviously there's a whole heap of other, probably more important considerations before you would buy. But thoughts on this one point? Better to have a great house in a bad neighbourhood than an average house in a bad but arguably slightly better neighbourhood in terms of tenant risk?

 

Hoppers is definitely working class/ middle class it and has a lot of people of ethnic (mostly South Asian) background. It is definitely much better than Corio/Norlane which has a lot of social issues including people on generations of welfare. The tenant profile is very different...I have investment properties in both Werribee and Hoppers and have not many issues over the last 9 years or so.

 

That makes sense.
A shortcut to becoming familiar with an area like BNE for example is reading about those particular areas on forums like this while you do your research, and ask lots of questions. No point in reinventing the wheel when plenty of people have already done the research

 

You can get an average home in Belgrave for that price, on the train line. We looked around there last month.

Went to Boronia and Ferntree Gully yesterday, expected it to be much flatter but the suburbs were also built atop of uncleared slopes and hills. The road are on sideways slants and dips and there's very limited flat space for shops, car parks etc. Even the main streets are wonky. Boronia although not as topsy turvy as Upwey McDonalds carpark, the land was still pretty awkward. Was surprised to find average homes here are 600k compared to Belgrave where the lands not much much more hilly and uncomfortable in comparison.

I also noticed all these towns are "cramped" in to whatever flat clearings of land there were. Pokey area's. I know Dandenong is a dump but it's a proper suburb even Hampton Park is a properly built suburb they are far more liveable. If I lived in Boronia I would avoid driving along Liverpool and Wellington roads in the wet. It is simply 3rd world reminds me of Belgrave-Gembrook rd around Avonsleigh which is simply not an acceptable rd to drive everyday.

 

Sorry Sash but Hoppers is definitely not middle class. It is a very transient, low SES community, with lots of under-employment and unemployment and lots of social issues. I deal with these issues everyday at work. It may be slightly better than Corio / Norlane but at the end of the day both communities are very similar.

 

Not to familiar with Hoppers but I believe it is a mix of a slum with working middle class families ala Hampton and Noble Park. Hoppers is more of a H&L suburb though.