Hello Property Gurus Looking to jump into the property market and wanted your opinions on your thoughts on which suburb you will pick for longterm future capital growth based on historical growth but predicted future trends i.e. demographic changes and developments that will make these suburbs more popular. The lowdown: Property Type: - Single frontage Victorian/Edwardian terrace 2 bed/1 bath - Land Size 150 SQM+ - Condition Liveable with scope to value add (either working within current layout or addition upwards). Locations: Prahran, South Yarra, Windsor, Armadale, Hawthorn, Fitzroy, North Fitzroy Location parameters: Within 1km of train station and walking distance to supermarkets/cafes. Budget: Up to mid 1.4m Property to serve as PPOR likely for 3-5 years and either looking to sell after renovations or hold (thus considerations for potential yield in these suburbs as well). Your advise, thoughts and considerations as well as potential sources to do further research would be greatly appreciated!
You would probably want to check the heritage overlays and streetscape to see what is possible. If you cannot add value yourself it may also cost an arm and leg finding a custom builder. You will need to do your numbers to make sure the end sale value works out to be much more than it will all cost. As you are playing at the upper end of the market it may be though going finding a buyer, not many id assume would settle for 150sqm if you are pushing $1.4m to recoup your costs. On the rental side. I presume a 2 b edder wouldnt yield at most $600pw ish vs say $1.1m purchase price would give around 2.2% net. So depends if that works for you. These small blocks are also prone to dampness due to lack of natural light and pest issues. At $1.4m youd be basically free to buy in most places in melbourne. Subdivisions im glen iris/malvern east may be another option because atleast if you develop you can have the added upside of flogging off new homes to foreigners who can pay over the odds. But if you want to live there then its not really an investment decision rather a lifestyle decision for you. Dont mix the two otherwise youll end up doing subpar in both. Hope it helps
Also have a look at Ascot Vale (although the train is impractical at AV station I am told - tram along Mt Alex is ok) A new woolies is going in along Mt Alex rd. The Y-man
How is Brunswick, Brunswick East (and West), Carlton, Carlton North, Parkville, North Melb, West Melb, Collingwood, Abbotsford etc not in a 150sqm Vic terrace suburb list with good cap growth?
I would also suggest Port Melbourne would be a good area to consider. A quick search shows these type of 2 or occasionally 3 beds seem to be around the 1 - 1.3M range unless fully done up. No train though but the regular light rail going to station pier along the old train line & plenty of cafes / shops / supermarket on Bay St & also Beaconsfield parade & beach access. Would suggest for easier city access via light rail stations, search between Bay St and the light rail, it makes a flat / easy walk to everything. Even the CBD if you’re energetic or ride a bike. Almost as always - keep away from the new high rises under construction towards Webb Dock / Lorbeks (I know not in your brief) as quality is apparently rubbish. E.g. 47 Farrell Street, Port Melbourne, Vic 3207 https://www.realestate.com.au/property-house-vic-port+melbourne-133791830 43 Heath Street, Port Melbourne, Vic 3207 https://www.realestate.com.au/property-house-vic-port+melbourne-133767270 Beware of heritage overlays, neighbours planning etc. Just my 2c and good luck!
Sunshine North? Due to proximity to the city ? River Valley: Land for sale Sunshine North | 11km from Melbourne CBD
Thanks for the words of wisdom! Would love your opinion on determining the cost feasibility of of a renovation in the future. What I mean by this i.e. single frontage Edwardian house available to purchase for lets say 2 mil that has a 10 year old renovation. Back then I'd assume costs of renovation would be less. How would you go about assessing that your renovation in 10 years will yield X result. Hopefully that makes sense?
why do you want a victorian terrace? they're nice to look at, but having lived in one for a shorttime, the insulation is terrible. as said reno may also be an issue. carlton, north melb, brunswick, some pockets in fitzroy/collingwood have a high concentration of these. there are some across fawkner park but i believe those are around 2m....
You could probably pick up an already built mcmansion across the river in avondale heights for not much more. No worries. Im no expert but would assume it would work something like this: you do your due diligence on an area to determine (a) what an unrenovated one would sell for at present, then (b) what a renovated one would sell for at present. If you think the purchase cost of (a) + cost of rennovation (you would need to estimate) comes in at less than buying (b) outright then you might be better off buying (a) and going through with the renos. More often than not going for the unrenovated property always works out best financially especially if you can do some small jobs yourself. Cons include risks of cost overruns especially if you are not experienced in the area and potential health impacts of asbestos. However, if you intend to live there then atleast you can add your own touch, know what materials are being used and do a design that works for you rather than overpay for someone else's potential cheap hack job which after a few months may start falling apart..
