VIC Dandenong ?

Hi All

I'm looking at purchasing my first IP and have been wondering what anyone thinks of Dandenong. Can anyone give me some tips, pointers, suggestions etc about growth potential and anything else about this area?

Thanks

brian

 

Hi there

Dandenong is fantastic - however you want to 'know' dandenong before you invest in dandenong. For instance, over the last 5 years, i'll say Dandenong has struggled a little with capital growth, but still achieves a healthy yield. Stay away from apartments as they are struggling to get off the ground. If development, be careful, townhouses are attractive, but planning can take a while - casey is a nightmare.

Before i'd write more, what is your strategy, you say IP - what are you looking for and what is the price range? for instance, a block for development will cost $800k plus the build....so thats a bit of work. A TH is great but will depend on location.

There is a 'stigma' to noble park, people get intimidated by the afghans and sudenese, so be aware remember a IP - you choose the tenant and most if not all of mine are indian/ sri lankan / young professionals so throw the stigma out the window and enjoy middle eastern food - afghan is my favourite (head to Thomas St).

Depending on your price range think about Noble Park which is awesome.....the rail upgrade is having a positive effect on the market and the developers such as myself are still very optimistic on the prospects .....


Hope that helps!

Cheers Ivan

 

will you consider neighbor suburbs ie Dandy north & noble park north as there are better pockets in these suburbs

 

Stumbled across this thread, was wondering where these 'good pockets' were?

 

Is this still the case? Apartments (new ones) and developments seem to have taken off tremendously over the 2 years - which makes me wonder whether older styled apartments that are still less than 300k (for now) should be considered.

 

Agree. So do you think it's worth investing in the older styled complexes there?

 

I'd love to if I could. Unfortunately, I can only obtain finance to purchase an investment property of up to $350k which leaves houses with land component in Melbourne out of the picture entirely.

 

Can you expect much capital growth from 1 bed rooms in the inner subs?

 

Melbourne is going to overtake Sydney in a few years time in terms of population size. Yet, in Dandenong you can still buy a two bedroom apartment/unit well under 300k. There is absolutely nothing in Sydney under 400k and that would be much further from CBD than Dandenong is. I bought a two bed apartment in Noble Park two years ago. Excellent cap growth, especially once the stamp duty exemptions kicked in last July. Not sure how much longer the growth will last, but so far so good.

 

Speaking of timing; units in Melbourne are looking better for growth right now than houses.
There's a few things possibly going on, might make another post on it... Long story short; Dandenong units right now have good momentum.

 

That’s good to know. I’d be interested to read that post and know what your thoughts are.

 

Here you go: VIC - Where is the Capital Growth right now in Melbourne?

By the way, I'm not saying units will out perform houses overall... if you're buying a house vs. a unit in the same suburb, the property with the better quality land to asset ratio (houses) wins the capital growth race every time.

It's just that the data I've got is suggesting that now is still okay to buy a unit in Melbourne because the unit market hasn't done so well and it's showing more signs of life this minute

 

I know its property chat but I think there is better value in investing in shares (even if it means you are gearing up) at those kind of dollars. I don't see much potential of anything at that price range in Melbourne Metro (300-350K)

 

Any updates on the unit market? Are you still expecting prices to boom in this area?