First Home/Apartment Advice

Hi All

First post and need some advice regarding my first Property. I am look at properties in Melbourne around $400k.

I am currently still living at home will move out in a few years and deciding between:

1. Buying an apartment (1 or 2 bedroom) on the fringe of Melbourne CBD (Renting it out for a few years before making it my primary home)
- So far I have looked at Apartments in Travancore (approx $350k) great location.but high density and mixed reviews regarding the apartment building .
- Apartments in Abbotsford, but similar to Travancore, is high density (appox. $380k)
- A unit in West Footscray/Footscray/Yarraville/Seddon area

2. Buying an investment property further out of Melbourne
- Werribee due to the pricing being around what I am looking for and most significantly the growth currently in the area
- Melton, yet again due to price point and growth around the area

What do you all recommend, and are there any areas that I haven't listed that I should look into?

 

Land is what increases in value so ideally a H&L would be the preferred option but then it means living further out so will be a lifestyle choice at the end of the day.

If you go the apartment route look for a boutique complex (16 or less units) on a large parcel of land which was typical for 1950s to 1970s style complexes.

Be aware that older complexes usually require more maintenance and are subject to expensive repairs such as concrete cancer.

Always ask for the last 2 years AGM minutes and financials as this will tell a tale you will want to know.

 

I currently work in the CBD, and in the future would like to live around the CBD.

 

You have answered your own question

 

Thanks Colin, some really great advice! I do want to get into property investment in the future, really passionate about it and which is why I am tossing up between starting the journey now, or focusing on that first home (even if it means sacrificing the capital growth over the next few years). What would your advice be on that? It is probably a question for me to answer but it would be great to see other opinions.

 

Maybe consider an inner city apartment in as small a size complex with max land portion as your budget allows with the goal to convert it to a rental property down the track. Dont overlook properties that may need some TLC that are structurally sound as if done right you can add vale back for at least every $ you spend x2 or 3 or more.

 

having needed to make same considerations a few years back, in hindsight I would say put more emphasis on your personal preference - ie how keen are you to move out and have your own space in a few years ? If it is very important, how prepared are you to rent (and maybe move about) for potentially a longish time ?

may not be fun (but not end of the world) of being stuck in a position a few years down the track of having property you can't move into and don't want to sell yet and can't borrow any more yet to buy another place. At which point you need to decide if you have to rent (if you're single, there's a lot less value for money in renting a 1 or 2 bdr on your own in city) or save save save that rent for another deposit by remaining at home

whilst you may think you're okay with living at home now, your perspective may change in a few years when you want to be able to have friends over on a whim, rule your own kitchen etc
hard to put a price on freedom and indepedence some times

 

As @Colin Rice said in post 3, H&L is better long term, even if you have to commute for a time when/if you choose to move into it.
Plenty of people live in Geelong and commute daily to Melb CBD (my old neighbor did for 20 years, geelong west, geelong station train to Melb, tram down St Kilda road)..
Or, Rentvest down the track !
You havent touched on future plans for relationships, income (possible negative gearing) .....

Keep in mind that the larger the unit floor area the more your strata fee's will be also

Better to have a toe in the market than sit on the side lines saving forever.........

 

Nice.
I admit I got tired of the Victorian rates structure
The nicer your property clearly the more you can afford and so the rates increase

 

Tempting as living near the city maybe, if you are doing this to invest, go for a house in Werribee (closer to city by public transport) or Melton.
You can also look at Wyndham Vale in that price range. Maybe even Sunbury?

 

5/1 Looker Street Murrumbeena Vic 3163 - Apartment for Sale #127731490 - realestate.com.au

You'd do well with something like the above - older block, no lifts, good land content, 1 minute walk to the train that gets you into the city in 15 minutes at peak hour.