VIC Dandenong ?

Discussion in 'Where to Buy' started by ibanez01, 22nd Jun, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. ibanez01

    ibanez01 New Member

    Joined:
    11th Apr, 2016
    Posts:
    3
    Location:
    NSW
    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
     
  2. Redwood

    Redwood Well-Known Member Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    483
    Location:
    Melbourne
    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
     
    Lone_Wolf, The Y-man and Cactus like this.
  3. Tinaandalex

    Tinaandalex Well-Known Member

    Joined:
    11th Aug, 2015
    Posts:
    108
    Location:
    Melbourne VIC
    will you consider neighbor suburbs ie Dandy north & noble park north as there are better pockets in these suburbs
     
  4. Link93

    Link93 Member

    Joined:
    19th Dec, 2015
    Posts:
    15
    Location:
    Melbourne
    Stumbled across this thread, was wondering where these 'good pockets' were?
     
  5. Pow wow

    Pow wow Member

    Joined:
    4th Jun, 2017
    Posts:
    8
    Location:
    Melbourne
    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.
     
  6. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
    I still argue that one of the major rental attractions in the area is the hospital (for staff). Also look at the possibility of conversion into medical (and related) practice - as there is usually a host of specialists and consulting rooms adjoining.

    The Y-man
     
  7. Pow wow

    Pow wow Member

    Joined:
    4th Jun, 2017
    Posts:
    8
    Location:
    Melbourne
    Agree. So do you think it's worth investing in the older styled complexes there?
     
  8. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
    I'd say go house with a decent block of land.

    The Y-man
     
  9. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
    Where there be newer devs, the older will be less desirable, and therefore necessarily cheaper to get tenants. So you yield will be hit.

    The Y-man
     
  10. Pow wow

    Pow wow Member

    Joined:
    4th Jun, 2017
    Posts:
    8
    Location:
    Melbourne
    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.
     
  11. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
    I would actually look at a 1BR in the inner subs for that pricing (NOT CBD).

    The Y-man
     
    G TOWN likes this.
  12. Pow wow

    Pow wow Member

    Joined:
    4th Jun, 2017
    Posts:
    8
    Location:
    Melbourne
    Can you expect much capital growth from 1 bed rooms in the inner subs?
     
  13. meme plecko

    meme plecko Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    251
    Location:
    sydney
    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.
     
    The Y-man likes this.
  14. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
    All in the timing.
    I bought at $150k, went to $300k in less than 3 years (boom time). Then it went from $300k to $320k over the next 13 years..... (called stagnation!) :(

    Will it keep stagnating for the next 15 years? Who knows - I hope not.
    Will it grow better than a 2 BR in Dandy? I'm not sure - I just don't know the tenant market in Dandy for 2BR aparts as rental yield also comes into the equation.



    The Y-man
     
  15. Jake Milne

    Jake Milne Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    235
    Location:
    Melbourne
    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.
     
  16. Pow wow

    Pow wow Member

    Joined:
    4th Jun, 2017
    Posts:
    8
    Location:
    Melbourne
    That’s good to know. I’d be interested to read that post and know what your thoughts are.
     
  17. Jake Milne

    Jake Milne Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    235
    Location:
    Melbourne
    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 :)
     
  18. kaibo

    kaibo Well-Known Member

    Joined:
    30th Jul, 2017
    Posts:
    122
    Location:
    Melbourne
    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)
     
  19. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,025
    Location:
    Melbourne
  20. DrunkSailor

    DrunkSailor Well-Known Member

    Joined:
    25th Jun, 2017
    Posts:
    288
    Location:
    Melbourne
    Any updates on the unit market? Are you still expecting prices to boom in this area?