VIC Ferntree Gully or Boronia or Bayswater? What are my options?

Long time lurker, newbie's first post here. I want to ask for your honest opinion here on my thoughts and may be your suggestions on what I should do.

I am pretty new on PI. I read a few books and the posts here and attended a few seminars. That is as far as my education went on PI. I have been saving for a bit but probably only enough for something around 600K mark. With the interest rise and the more strict rules on overseas money coming in (from China in particular), I probably want to wait and see how it is going to effect the market (there is this big talk around about interest rate rise causing psychological effect on the market) and at the same time to save another 6 months before getting my first IP. 6 month later I will probably have enough to get something around 750k.

I live in Wantirna South, this place is well out of my price range (any half decent double story 1mil+ easily). The ripple effect has set in for this outer ring for a while now, Wantirna, Wantirna South, Scoresby, Knoxfield, Ferntree Gully, Boronia, Bayswater.

I liked Ferntree Gully, Boronia, Bayswater 2,3 years back (unfortunately no money then), they are the only suburbs in the outer east that have major train stations and good shopping complex, also 10 minutes away from the second largest shopping center in the country on Burwood Hwy. More importantly, the will hopefully still be within my price range in 6 months time. The other reason for these areas are they are close to work, so worst case scenario, I can always turn it to PPOR.

Here is my situation. I live with parents for now to save more so apart from all the bills and council fees and grocery I don't pay rent. My daily job pre-tax at little over 100K and I do not touch it at all, my little side business can support me and my parents ok. I think I can say I am a good saver. So taking these into consideration, I would like to ask for your honest opinion.

My questions are
1. Ferntree Gully, Boronia, Bayswater have experienced some good growth in the past 2-3 years (8-9% per year), do they still have potential? I don't think they have performed significantly better than any other average suburb in Melbourne. If it is the three you will choose, which one would you choose and why...
2. Should I get one in the above mentioned three areas or similar areas or get one in places like Cranbourne or officer and get another one the year after in similar areas?
3. Is there any other suburb you would recommend? I was also looking at Epping.
4. I was looking at the ads from Metropole buyer's agent,,,would things like this be necessary?


Sorry about the long post and thanks in advance for taking the time to respond.

 

I would look at other threads and opinions as well. In the end it depends if u intend to subdivide etc as well and how much units go for their. Best of luck. Keep in mind itd jan and it will be a while until things pick up so your capacity may change when market starts

 

Thanks for the detailed reply, Y-man, much appreciated. Any chance of PM me the detail for the meetup? Tbh, I want to get more confused so that I can learn more.

 

I'm going to give you some advice that I probably should've listened to myself 2 years ago

1. Sit tight and hold onto your money - there is no need to rush out and buy within the next 6 months, let alone 12 months. Don't let a fear of missing out motivate you to buy.

2. Educate yourself on property investing - read every single book, magazine, every thread on this forum and visit the interview section at 'Somersoft Forums', check out Margaret Lomas, Michael Yardney, etc and all the property gurus but do not sign up to anything at seminars or free information sessions. Research and then understand yield, what are the drivers behind capital growth, etc.

3. After 12 months of education, learning and research, come back, read what the experience investors are up to now (notice themes) and start asking more questions.

4. Finally, take on board people's ideas and suggestions who are experienced, knowledgeable and investigate their input but make your own decisions based on your own research. An investment is a very different decision to buying a property that you will eventually live in. Very important not to confuse the two.

Then you'll be in a much stronger position to start investing, and particularly in the areas you've mentioned, which have experienced large amounts of growth already.

All the best!

 

Thanks for the reply. No subdividing for me at this stage, too complicated for me, nor do I have the financial capacity to do so. You are right, that is my worry, when the market picks up, I will be chasing it again.

 

Thank you so much for such detailed reply. Thanks for the advice as well. I read a few Margaret's book as well as Michael Yardney's. But liked the former better and read some of them three times, actually it was her book got me into learning and thinking about PI. I bought four years of second hand API magazine, I am in the process of digging through almost every single article. Interview section at 'Somersoft Forums' will be my new homework now, thanks for your recommendation.

Now I am just regretting that I haven't post this thread early. Thanks again.

 

Thanks Y Man - I'm new to the forum as well and would like to attend the next Melbourne Eat Get Together in Feb(?). What date and is it the same location?