Hi, I was wondering if anybody could share any insight or opinions on Clyde (3978) for residential investment, and whether you would prefer any other areas/suburbs in Melbourne? In the market for a new (or very recently built) 4-2-2 on minimum 400m2 (closer to 600m2 would be ideal) in the $500-700 range that would be cashflow neutral/positive and give the best chance to achieve better than market average growth over the next 5-10 years. I'm not quite sure what data/factors to be looking at, which would give a good indication of expected price growth over the coming decade or two?! Some high-level stats on the City of Casey and Clyde: Clyde sits in SA-3 (Casey South). City of Casey is one of the fastest growing regions in Australia. 3rd fastest growing municipality in Victoria, behind Wyndham and Whittlesea. 8th fastest growing municipality in Australia. peopePopulation is forecast to grow from approximately 323,604 in 2017 to 514,800 by 2041. That's ~2%/year. New Train Station in Clyde likely to be delivered after Cranbourne Line Upgrade works - duplication of line between Dandenong and Cranbourne, and level crossing, are complete (timeline indicates 2023-2025 completion, so some time/years after that?!) Clyde is planned to become one of the 121 Major Activity Centres in Melbourne and is in the middle of three Metropolitan Activity Centres (Dandenong, Fountain Gate (Narre Warren) and Frankston). 15-25 minutes or km's to each. Some Property stats on Clyde: House Inventory now: 10.99 House Inventory (-12m): 11.72 House Days On Market (now): 49 House Listing price median (according to thepropertynerds): $523,674 House Listing price median (according to realestate.com.au): $570,000 House Listing price 3bed median (according to realestate.com.au): $519,900 House Listing price 4bed median (according to realestate.com.au): $600,000 House Lease price median (now): $400/w House Lease price 3bed median (now): $380/w House Lease price 4bed median (now): $410/w House Gross Yield median (now): 3.6% Lease Over 21 Day Listings (now): 2 Vacancy Rate (now): 1.71% Owner Occupied: 77% Inventory House Conditions: Strong buyers market? All thoughts and feedback welcome. Thanks.
Clyde I think is mostly fhb market...new homes on small blocks. The developer already had his share of the profit and capital gains would be a long time coming..imho. Probably better off looking at older properties in Narre Warren with land component for later subdivision.
When Clyde area was built, houses were relatively cheap but it was almost all about OO rather than IPs. After that, prices grew up very fast and now Clyde is relatively expensive, whereas I’m not sure it’s attractive to renters. I do remember times I saw dozens of new houses for rent, probably not anymore but I still think the transport links are not good enough. When you talk about metro, trey are still struggling to do anything decent with Cranbourne line and have been struggling for decades. If anything related to Clyde is gonna go after that, this means never. in terms of Narre Warren, this suburb is having low rental return and rents don’t go up too much over the years. I have an IP in there (North part) and wouldn’t buy anything in there now but that’s my opinion..,
I agree with the above posts - if I were looking for an IP in Melbourne, it wouldn't be in Clyde. Or any of the other typical FHB areas as these are relatively new estates with fairly generic 3 and4 bedroom houses on rather small blocks - no scarcity value. While they may have wetlands and neighbourhood parklets, they have poor public transport and amenities.
Close friend bought in Clyde North and I visit them frequently. Agree with all the points above. Everything is nice and new but they are try to sell to move to a place with better transport options. The key stat I think matters is how many new houses will be built in the area over the next few years. I think there will be a lot of supply.
Thank you all for your input. In Clyde, infrastructure generally and public transport more specifically do seem to be a little problematic currently, but the added infrastructure appears to be expected (promised by both parties, but not committed and no specific timeline?!) in the next few years. Land/Building supply will continue for the next couple of decades, but seems to be mostly picked up by FHB/OO, leaving around 20% for rentals, which seems reasonable given the population growth expected in Casey/Clyde is above the average for Melbourne. Looking more generally around Melbourne (city, not regional), where else would you recommend looking within the Melbourne market in this sort of range: $500-600k ideally, or up to 700k max. minimum 400m2 (ideally 600m2+ and/or 60%+ land content) 0-5 years old. To minimize maintenance and maximized depreciation/cashflow. ideally 4-bedroom. not terrible/low yields. In the cashflow neutral/positive range on IO at current rates. anticipated capital growth at least on par with Melbourne-market average over the next 5-10 years.
I had a glimpse on this other day Clyde sits very top in Victoria's home burglary hotspots for 2019 | RoyalAuto | RACV
One or more of these factors need to be adjusted to narrow down a suburb $500-600k ideally, or up to 700k max. 0-5 years old. To minimize maintenance and maximized depreciation/cashflow. ideally 4-bedroom.
That may be due to the fact that there would be a lot of homes vacant from early morning when owners head off to work until evenng when they return. Burglars would be able to work out which homeowners are gone for most of the day. I saw a show on tv recently about this very thing - a FHB/family area (but I can't remember which area it was ) where lots of people head off to work so that even those who stay at home can feel vulnerable because there are few neighbours around.
That sounds about right, highly leveraged suburb so lots of double income families I suspect meaning lots of vacant houses during the day
- Homes in these new areas have similiar floorplans and similiar windows and door mechanisms, once they've broken into one they can rinse and repeat - New homes are filled with new goods, generic brand stuff that is easy to onsell and hard to track
I know a few families moving out of there due to safety. Also another friend had a shotgun pulled on him and car got stolen. Another friend had a gang target his car when exiting the driveway chasing him down he managed to lose them. Like others have said it’s more of a FHB hotspot.
