VIC Buying 1st investment property in Melbourne

Discussion in 'Where to Buy' started by Azzy, 4th Nov, 2019.

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  1. Azzy

    Azzy Member

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    Hi every one. I just joined this forum and I am Getting a lot of useful information about investing. I am not very happy with My journey so far. Came to Australia 9 years ago. I Was able to buy ppor (3 bed brick home) 3 years ago with 20% deposit around 600k near bundoora mill park area. Last year I had a deposit of investment home around 150k with 450k loan approved but was waiting to buy as markets were slowing down. Overall I feel I have not achieved anything perhaps missed many opportunities just by looking and not actually investing in areas like mernda, doreen and wollert where land prices almost doubled in last 4 to 5 years. However now I am thinking to buy first investment quickly. My goal is capital growth and can afford around 1k negative gearing max.
    Looking at few options .
    1. House and land in mernda or doreen for 550k. 4.2.2 home. Thinking of buying new so can claim depreciation to save tax and rely on capital growth long term.
    2.donnybrook lands 400sq for 285k with title next year. I am assuming land price will increase. Can sell land after title if goes up big time. Just need to pay 5% now.
    2. 3 bed townhouse in South morang near station or a 2 bed townhouse near reservoir under 550k.

    Any advice which can help me go to right direction will be appreciated.
     
  2. Westie

    Westie Well-Known Member

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    None of the above.

    Welcome to the forum.

    Look at Epping, near the trains.

    Or look around Geelong.
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    There's 2 x option 2's..... :D

    Out of those, I'd only be comfortable with the second option 2 - 3br t/h Sth Morang, but house as per @Westie would be better - as long as it's in reach of the stations or a 7-day-dawn-to-late-night bus. Sth morang station basically touches Epping, South Morang, and Mill Park.

    The Y-man
     
  4. Azzy

    Azzy Member

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    Thank you guys for your advices. I will keep an eye on epping old homes. I saw a few on sale with big lands but they in court so need to enquire with council if it can be subdivided.
    I have also noticed thomastown had biggest hit last year with 8% drop and still struggling a bit. It's next suburb to reservoir with 2 freeway entrances. Close to cbd. May be good option for long term investment in a old house with decent land. People will be priced out of reservoir and will move to thomo one day.
     
  5. Azzy

    Azzy Member

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    Welcome to the forum.

    Look at Epping, near the trains.

    Or look around Geelong.[/QUOTE]
    Which part of Geelong do you think?
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    There's no way in heck I wold have picked those areas either!! Granted Mernda/Doreen now have trains, but I still don't get Wollert (hey don't get me wrong, I have Stockland shares but still...)

    The Y-man
     
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  7. ashish1137

    ashish1137 Well-Known Member

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    if you have missed the boat, what makes you think you would see the same growth as you have seen already.

    donnybrook: can you target a seller in need to move out of a contract where the contract was signed end 2017 to mid 2018 and below or at contract price, by all means, go for it.

    south morang is always in demand, you will not go wrong with it but no one can predict growth and yield. And I am not an inner or middle ring guy. I love outskirts. :D

    What happens if assumption goes wrong? May be check more Victoria threads to see what others are doing in similar boat as you.

    Regards
     
  8. ashish1137

    ashish1137 Well-Known Member

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    :mad:

    I bought a 287 sq mt lot in Jan 2017 and building an 18 square home for 390k. :p
    I know the growth is slow and no sign if it is going to be rented out. But I might have got about 15% to 20% still on purchase price, I reckon. ;)
    I myself have a better example to give but it is not bad ehh!
     
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  9. Westie

    Westie Well-Known Member

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    Do your homework first, once you've narrowed things down, come back to this thread and ask.
     
  10. Azzy

    Azzy Member

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    Ok
     
  11. househuntn

    househuntn Well-Known Member

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    Sis is looking in Epping atm. Apart from the central area near the centre and train (probably too expensive), so much of Epping is courts and odd shaped land, I don't see much growth drivers or potential (eg subdivide) aside from riding the wave of growth from Reservoir/Thomastown?
     
  12. Azzy

    Azzy Member

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    Hi. Agree with last line you said. Over the years prices will be up no matter what. I give you an example. 3 years ago 1 home in mill park passed in .asking was 570. They were happy to sell at 525. They couldn't sell. Same owners done little reno and sold last week for 745000. House is 4 bed 25 years old. Land is 600. I end up buying another property in same area at that time which is still not bad as its grown over 120k.
     
  13. The Y-man

    The Y-man Moderator Staff Member

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    One thing I think I have learnt over the years (and you have I think discovered) is NOT to wait "in case the market goes down", but to find somewhere where the market IS down.... it's the old go to an open and if you hear crickets and a lonely agent, that's the place :)

    The Y-man
     

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