Broadmeadows Property...

Haha fair enough Mate, even though the structural issues weren't as bad as we thought having the tradies have a look. Just some re-stumping. Would you buy it 270k as is?[/QUOTE]

 

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Just had a look at this it's a corner block? And yeha u could squeeze 2 small townhouses there with frontages. Maybe as a quick dev permit it maybe worthwhile as can't see much for sub 300k mark.

Doesn't seem that bad I personally don't see much work done seen worst houses in Preston and reservoir etc

 

Just had a look at this it's a corner block? And yeha u could squeeze 2 small townhouses there with frontages. Maybe as a quick dev permit it maybe worthwhile as can't see much for sub 300k mark.

Doesn't seem that bad I personally don't see much work done seen worst houses in Preston and reservoir etc[/QUOTE]

Yes it a corner block, but has been subdivided. I spoke to the council and they said you could squeeze 2 town houses onto it.

Just needs a coat of paint and a tidy up and it's good to go. It was rented for $320 per week last year. Just not sure if it's going to get good capital growth given the brand new town houses springing up everywhere. And the small block.

You think 270 - 280k is a good buy?

 

Yes it a corner block, but has been subdivided. I spoke to the council and they said you could squeeze 2 town houses onto it.

Just needs a coat of paint and a tidy up and it's good to go. It was rented for $320 per week last year. Just not sure if it's going to get good capital growth given the brand new town houses springing up everywhere. And the small block.

You think 270 - 280k is a good buy?[/QUOTE]

Distance wise to cbd it is Prob the cheapest house ard. Blocks like this in reservoir sell high 400-500kish and 500-600kish in Preston etc
You would be positive geared for sure at 320 per week and corner blocks are all premium blocks

One in Heidelberg west went 820k though 500-600sqm block

 

Distance wise to cbd it is Prob the cheapest house ard. Blocks like this in reservoir sell high 400-500kish and 500-600kish in Preston etc
You would be positive geared for sure at 320 per week and corner blocks are all premium blocks

One in Heidelberg west went 820k though 500-600sqm block[/QUOTE]

Ok then I will have to check those places out. It's only a 370 sqm block though. It has been subdivided previously. So will limit future development. So do you still think it's worth it. I've been pulling my hair out trying to decide as getting a lot of for and against?

 

There are blocks smaller than that are subdivided like 315sqm. Even 406sqm blocks can be subdivide into 4 if u have the right architects planners and know how

Well depends how much know broady it is pretty rough ard those areas as u know. Seen some pretty dodge stuff go down there before.

If u can get a tenant for 320per week that's pretty good and it's a corner that's the positive. 270k can buy not much nowadays and even land in Pt cook cost more than that for 350sqm.

 

Ok thanks for that, I don't know what to do now haha.
She want 280K for the place but but that still below market value.

Do you think all the townhouses being built will have an Impact the property price as people will want the newer place.?

I think with a tidy up and a coat of paint it will get $320.

I guess I'm looking for long term capital growth and don't want it to be sitting there in 5 years time at the same price.

 

That little pocket of streets there north of Camp Rd could quite possibly be the very last area of metropolitan Melbourne to gentrify... if gentrification is what you're holding out for. People will only be renting or buying there because they have to, not because they want to. One of those sentiments is a driver of prices, the other one not so much.

It's cheap for a reason, it's coming off a very low base. As for whether you should offer on it and at what price? None of us could tell you that with any authority- it has to be your own DD (comparables, local agents, cashflow projections, goals/desired outcomes).

 

Thanks for the information. Yes I noticed suburbs such as Glenroy have gone up considerably, but broadmeadows yet to follow. Surely it's only a matter of time before it will gentrify, its so close to the CBD. I look at Mt Druitt back in 2010 you couldn't pay someone to live there, now its seen some great growth. That's what I was aiming to repeat with this property.

Basically my goal is to buy and hold with the opportunity to tap into some equity in a few years time to buy again. Comparables in the area are around 300K to 320K... So i'm buying below market value. Rental appraisal was between $310 - $330.

If I paid 280K for it I wouldn't go backwards. But will it sit there and not go up in Value for the next 10 years is the question?

 

From a local perspective (well a western suburbs perspective...close enough hey) Broady and Glenroy don't really seem that different. What explains the massive price difference? You still hear about assaults and crime in Glenroy, if anything more so than Broady. Both suburbs have large houso areas, is the Glenroy one more isolated and everyone just avoids it (like here in Sunshine West)?

 

All I put it down to is that Glenroy has a concentrated houso area, whereas Broady seems to be almost all commission style house. Glenroy has the old pretty houses that look nice when done up/restored lie you see in upmarket suburbs- From what I have seen in Broady its almost all houso stock

 

Just because a suburbs prices increase doesnt mean its gentrified...
Its just become more expensive

 

Broadie feels dodgy as. I was down ther late last year driving through and every 3rd house had a messy front yard. I can't help but feel it will take close to a decade to gentrify.

Is it a good investment? Probably, but no way would I live there.

Quality of tenants would be something to consider too.

 

I know it is an out of favour suburb at the moment. And the crime rates are bad. And yes I wouldn't live there in a million years. But I'm getting it for 275k and with 5 k spent on a tidy up and a paint. It would be worth some where in the range of 320k.

So the plan is to revalue in 3 months and use the equity to buy again in Geelong or neighboring areas.