Carrum Downs, Werribee in VIC or Rokeby TAS?

Hi All,

What would you buy out of three options with a budget of 400-450K:

1. One 3 bdr house in Carrum Downs, VIC
2. One 3 bdr house in Werribee, VIC
both with low rental yield, but potential to grow in next 3 to 5 years(?) or

3. Two 3 bdr houses in Rokeby, TAS with higher yield

Thanks for your comments/thoughts!

 

Werribee is coming off a lower base and IMO will see better growth. If you can find a decent 3 bedder in the high 300's you should do well over the next 3 years.
Alternatively, if you could do a 3/2/2 house and land build for mid 300's, you should see some decent growth by completion, and get a better yield too.

Carrum Downs is hitting its straps around the 450-500k mark. I recently sold one after the decent growth seen over the last 2 years. Wouldn't buy in at today's prices and expect massive CG

Can't comment on tassie

 

Not Rokeby! Returns will be eaten up in repairs, vacancies ect and there is next to zero growth projected.

 

Thank you. It's not that easy to find a 3 bdr in Werribee in mid 300s.
More around 400K mark plus minus 10 to 20K. Is it still worth it at such prices?
Although it was not included in my original post/question, what do you think of Rosebud with reasonable blocks (700 to 800m2)?

 

I would say purely werribee due to infrastructure changes - that round circle in the middle is the NEC (national Employment cluster). I recall similar stuff in sunshine 2015 (I was too late to react) when investments were being done and look at it now.

 

Hi melbournian, any areas you can recommend? Closer to shopping centre or? Thank you.

 

Carrum Downs offers good access to employment, good shopping, 15 minutes drive to the beach. Frankston has done well and Seaford was also on the rise. Sandhurst is exy...and Carrum Downs is basically in the centre of them.

Can't say I know much about Tassie and Werribee while closer to the city seems to have a lot of vacant land between itvand the city.

 

Obviously where you but depends on strategy and cash flow. But do not ever buy any IP in Rokeby. Ever!

 

Hi Ghoti,

I'm curious to find out what makes Sandhurst so much more expensive than CD?

 

It's a premium golf course estate. Many homes backing onto the golf course, or with easy access to the parks and lakes.
Many spent big $$ on quality home builds.

Does have a Body Corp though. But the upkeep of the parks, lawns, lakes is immaculate.

 

Who would say that would be enough for a 250k difference in price between Sandhurst and CD. Do you think CD might benefit from some ripple effect?

 

Sandhurst always surprised me as the golf course is all it has...shopping is CD or Frankston, Seaford is nearest railway and Thompson Rd is a bottleneck most days. CD is a good place for young families so should always have a demand. Rising values in Frankston/Seaford certainly wont hurt!

 

I'm considering suburbs in the north west and suburbs in the south east. I had a look into Core Logic reports and the average 10 year growth for the suburbs I'm interested in is (houses only):

Carrum Downs: 6%
Frankston: 6.8%
Frankston North: 7.5%
Deer Park: 7.4%
Albanvale: 7.8%
Kings park: 7%

Interestingly CD have had the lowest growth amongst the mentioned suburbs. The suburbs in the north west have performed better as well.

 

Id be wary of the ones that have had high growth til now. You want one that hasn't had a boom so you can get in and watch it boom.
I'd look for surrounding suburbs that are yet to boom but haven't yet. Of your poll I'd go Werribee. Or if budget allowed Frankston Sth. I think FS may have just bolted though

 

@melbournian i also missed the sunshine boat in 2015 but will not make the same mistake twice i just locked in land in manor lakes next werribee huge potential

 

yup - people always talk abt how bad some suburbs in Melbourne better to buy interstate where yield. although that 82 Alfrieda did not get sold still - look at the St Albans (these properties were 600Kish or 700K last yeah max. (that is a boat that also has left) - the key is which suburb in Melbourne now will experience this kind of jumps not interstate just chasing yield.

 

Inspected several properties today at Werribee. At the moment still deciding between two properties:
1) 2 bdr, 1 bathroom, garage for 1 car house (no body corp.) in a good area in excellent condition, with no maintenance required and with a tenant and
2) 3 bdr, 2 bathrooms (cars can be parked at the back, no car port) house, that requires some work and not in the best area. Indicative price difference is around 50 to 70 K. I will be submitting offers for both tomorrow. Which one would you choose and why? Thanks.

 

How big is the block for no2?

 

567m2, but the way the house is situated, not a chance to build at the back...

 

I'd still go the no 2. If budget allows spend 15-20k - polish floor boards, paint, new kitchen, new bathroom. Then maintenance free on par with no1, but you will always have the option in 10/15 years to knockdown and build 2 or who knows even more depending on planning regs in the future.
With the 2bedder you probably don't have the land there for that option.