VIC Are there still bargains in Melbourne?

Are there still any bargains? What do you think, show me a bargain?

I decided to check out Croydon, Melb where I recently sold.

This appears to be a bargain, do a reno on a nice size block which is highly sort after. Fix it up and money to be made. This area/suburb for this product is still very strong market.
Sold - $570,000

1 Dumosa Avenue, Croydon, Vic 3136 - Property Details


Sold $811K (3 bedder x 2 and single carport)
for renovated house/cottage
7 Devon Street, Croydon, Vic 3136 - Property Details

 

A bit too close to the main road perhaps?

 

We're seeing a lot of activity in Croydon, Carrum Downs and the Frankston area. Seem to be a lot of investors selling.

 

Right, a sign that perhaps it's close to peak?

 

I have property in Carrum Downs, have had it for over 10 years, the agent I spoke to yesterday said .the demand is nuts at the moment!
I asked who was buying, I thought it might be investor driven....but no, they reckon there's more PPOR homebuyers specifically right now than investors. Still affordable, 10 year old house fairly new can still be bought sub $500k....$450k still looks like a decent house can be bought.

 

that's brilliant, good that it is not just investors, FHB market...nice one

 

its taken its time though. 8 years to grow $100k and then the last 2 years to jump another $100k.
Stuff that was $220k 10 years ago is now selling consistently $450k....just realised that's doubled in 10 years lol! It does support the theory that timing the market will accelerate wealth creation....if you can time it correctly. Anyone who bought 4 years ago has seen big growth recently.

 

Carrum Downs has typically had high numbers of investors buying in over the last decade. Its also had a frustratingly slow rise in house prices. The recent jump in prices I think would naturally see alot these investors want to realise their gains and sell up.

 

Correct! It's got me thinking.,.."should we....shouldn't we....." But then I think the tax we would pay on selling...better to just keep collecting the rent for retirement....for the moment

 

Yes i'm in the same position. Bought in in 2005 and subdivided....it's been a long wait... Decided to hold tho, well and truly positive cashflow now. CD had been asleep a long time

 

Did you buy at peak?

 

the place we bought sold I think from memory to the people we bought from for $170k 2002, we then paid them $235k in 2005....it flatlined after this, had another increase in 2010 with FHO grant beefed up. Then this current boom started approx 12-18 months ago I reckon. So in hindsight we bought around the peak of the last big increase prior to 2005...it was our PPOR back then and didn't care... It was easily affordable....we both thought it was really good value.

 

That is in part why I like to take profits and move to other rising markets

 

I guess we have done the "similar" over the years but without selling. We have continually refinanced property when able to, to keep accumulating.... So taken "profits" in the form of equity to reinvest. It pains me to sell an asset....but have come to grips with the fact that it may be needed sometimes.

 

I sell if it makes sense, that simple.
I just don't get emotional about a property, its just a property, I can buy property whenever I want. My focus today is really about increasing cash flow for lifestyle, if I can achieve this it means that I can distribute funds to my children, they are young, money comes in handy....

 

There are no bargains to be had in the Frankston/Carrum Downs areas. Daughter's neighbours sold their house in Carrum Downs within a couple of days. There is huge demand from the Indian community who want to live near the Hindu temple complex in Wedge Road. I have attended a few auctions in the last few months in Frankston where buyers were Indian or Chinese. Even though prices have risen considerably in Frankston I think it is still very affordable compared to other bayside suburbs and can only keep rising. So if you can afford to buy - do it now. As the old saying goes - "The best time to buy property is 10 years ago - the second best time is now".

 

Templestowe apparently one of the best performing suburbs, has had incredible growth, I think it has something to do with the schools?

 

Bloody Hell I have actually done something right. Bought in Carrum Downs 5 years ago. Extraordinary. Normally I buy slightly before something causes the local market to plummet.