Hi PC Members, I am looking to buy my 2nd IP and I'd like to know your thoughts about the above suburbs. Appreciate your advice and insights about them. This is my situation: $450K budget. I might be able to increase to $500k but I'd like to stick to $450K. $405K on a pre-approved loan + $140K in cash for deposit (I will use only $90K and the remaining will be used for another IP later this year) looking to buy a house 3b, 2Ba, with steady capital growth potential (investment grade property) Family income > $200k first IP is an apartment in Mill Park (its performance has been quite normal) Preference is Melbourne Questions: Are those locations considered good suburbs for an IP? Should I use an BA to look elsewhere? my wife is not quite happy with having BA as they are very expensive (however I think I would use one as it might be beneficial in the end) Any suggestions with regards other suburbs Appreciate your help
You know the area - so IMHO if you see a good deal, pick it up - coz you'll be bale to recognise it. I'm still puzzled by wollert (like why does anyone rent there....???) but Doreen / Mernda I get with the new stations going in - but this has pushed prices already, so at that price, you are prob looking at those 2BR townhouses (I mentioned in a couple of other threads) near PV Westfield. The Y-man
Thank you Y, What do you think about Wallan? There are still decent houses circa $450K however that area needs more development.
Looked at purchasing a house(4/2/2) ~200-300m south of the New shopping centre train station in Mernda back in 2015 for $374K. Regret it now that similar houses in the same pocket are up around 550K!
Wollert, Mernda and Doreen have all grown quite well over the last couple of years. Wallan has probably been the slowest of them all in terms of growth but it's starting to pick up. Because it's considered a regional area and offers $20k first home grant instead of $10k as is the case with metro Melbourne, it's becoming quite popular with first home buyers and those wanting a bit of a rural lifestyle without being too far from the city. It also has a train station. A first home buyer client of mine just bought a house and land package there in the $430ks. It's 360m2 land with 4x2x2 house. In Wollert you can easily get a new 3 bed between $450k-500k. In Doreen and Mernda it's still possible but you would need to look at established, which also means you won't be able to claim depreciation on plant & equipment. Another option you could consider would be to look at land sold via nomination. You can save quite a bit of money if you find the right land. Normally anywhere from $20k to $60k. Another client purchased a house and land in Exford Waters estate in Melton South with land around 50k cheaper than what the developer was selling. If you're not sure how nomination works, it's when the original purchaser wants to sell the land before it's titled for the contract price plus something on top for them. For example they bought the land for $180k 12 months ago and through the land developer it's selling for $240k but you pay $200k to the first buyer. You pay them the deposit amount they paid to the developer, normally 10% plus the $20k on top. Keep in mind that the bank will lend you on the contract price and you may have to pay CGT on the difference between contract price and nomination price if you ever sell but you also save a bit on stamp duty and a lot more on the price. Some other areas you can explore are Mickleham and Donnybrook. Merrifield estate will have a huge business park and Donnybrook has a train station and 10 minutes from Mickleham. A lot of people who want to live in Craigieburn but can't afford it are moving to these areas as they're only 5-10 minutes away from Craigieburn.
Just wondering if they have already reached their pick growth? or there is still future considerablee growth with the upcoming Mernda rail station
The stations are likely already priced in. There may be also some "blackspots" appear as noise, traffic and other conditions appear as the development in the area happens. The Y-man
It's difficult to tell as the market can be unpredictable but Doreen and Mernda are probably close to their peak. I'd personally invest my money in Mickleham and Donnybrook if I wanted to buy in the northern suburbs. Major business park and shopping centres currently getting built there. This area will be huge. https://merrifieldmelbourne.com.au/regional-shopping-hub-planned-merrifield/ https://merrifieldmelbourne.com.au/business-park/ Life at Cloverton
