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Cranbourne West

Discussion in 'Where to Buy' started by macdub, 10th Mar, 2016.

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  1. macdub

    macdub Active Member

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    What are people thoughts on Cranbourne West for investment? I am talking about long term investment (7+ years) and also what do you guys think of these 2 options below in this suburb. Which one would you pick and why? The budget is about 350k.

    1. Buy a cheap land in first stage in a new estate, build 3-2-2 and rent it out OR
    2. Buy old one across the street from new estate with more land

    Interested to hear thoughts/comments/suggestions.
     
  2. roberto

    roberto Member

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    I own an IP in Cranbourne East (Hunt Club). Bought land + house package in 2007 for $265K, currently around $420K. It has had the same relying tenant all this time. Rent for 340pw, so not a great yield, but it has been cashflow positive for me since year 1 (due to depreciation in the first few years and due to low interest at the moment).

    It was my first IP, very good for a set and forget strategy. These days I preferred established properties due to better growth potential.

    I have noted 4Bed houses grew more than 3Bed houses (% wise), so if you can afford looked at 4Bed instead. There is still a lot of land around, so do not expect any spectacular growth in years to come. I base my projection for my property in 5% for the next 7-10 years.

    Hope that helps.
     
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  3. macdub

    macdub Active Member

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    Thats helpful, thanks. I am also looking for set and forget type of strategy so building new might suit me better. Still weighing options.
     
  4. Cactus

    Cactus Well-Known Member

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    I have bought of the plan in Cranbourne North. Land won't be delivered until mid year but I have already experienced 20% increase in value. Just because there is lots of land to come, doesn't mean it will be delivered any quicker than the demand meets it. There is still growth to be had year on year.
     
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  5. macdub

    macdub Active Member

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    PM'd you for some more info if you don't mind, thanks.
     
  6. jippa3000

    jippa3000 Member

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    Hi Macdub,
    Friends of mine have also purchased off the plan in Cranbourne North, this is mainly because the numbers stack up and the developer is holding all the costs until settlement. With a limited budget of $350,000 an off the plan site will be your best bet to make some quick equity at the cost of the developer, you should also be able to get decent rent being new, then onto the next one :)

    There are a few sites currently around the area so won't be hard to find one.

    Good luck
     
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  7. macdub

    macdub Active Member

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  8. tobe

    tobe Well-Known Member

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    Maybe. Just because the subsequent releases are priced higher than yours doesn't mean yours is worth more than you purchased for. Developers routinely offer rebates and incentives which cloud the real prices paid. To get an idea of current value you need to compare to recent resale blocks, not developer list prices.
     
  9. Cactus

    Cactus Well-Known Member

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    Yes which I do. Since that post my assessment has proven very conservative. I am well aware of rebates promos etc. I have been working in the industry for over a decade. There are very few estates in Melbourne paying them at the moment especially in the SE.
     
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  10. macdub

    macdub Active Member

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    having a bit of analysis paralysis! can people throw some thoughts (good/bad) on cranbourne area for 350-400k price range? any other areas in this bracket for long term investment?
     
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  11. Otie

    Otie Well-Known Member

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    Personally I would buy in an older nice part of Berwick- look for something on a 600m+ block. Nicer area, then you have the option to add a townhouse at the back one day and if you actually wanted to move into it it would be a nice place to live. Cranbourne West is not somewhere I personally would want to live (lived there years ago when saving for a house deposit).
     
  12. macdub

    macdub Active Member

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  13. larrylarry

    larrylarry Well-Known Member

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  14. macdub

    macdub Active Member

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    the lines go across pretty much in the front about 30-40 m away and tower is about 100m away
     
  15. blackship

    blackship Member

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    Get it valued from bank first, some banks do not like these kind of securities
     
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  16. Dwalsh

    Dwalsh Well-Known Member

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    Cranbourne I was actually looking at today. It ticks all my boxes except cashflow isn't that great and land availability. In saying that the population growth is high so it should meet supply and demand. I'm trying to decide if I go cranbourne or Carrum downs as carrum downs supply is low and demand is high.
     
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  17. larrylarry

    larrylarry Well-Known Member

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    Too close for comfort. Also would it be attractive to tenants?
     
  18. macdub

    macdub Active Member

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    may be not..it was tenanted though..also the price just got reduced..its struggling to sell
     
  19. TMNT

    TMNT Well-Known Member

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  20. The Y-man

    The Y-man Moderator Staff Member

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    Do they bring it in on a truck? :eek::D

    The Y-man