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VIC First home buyer - 600k budget - where in Melbourne

Discussion in 'Where to Buy' started by ozdreamz16, 9th May, 2016.

  1. ozdreamz16

    ozdreamz16 Member

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    Hello everyone, my first post :)

    I am starting to look for my first property to live(currently renting), with a budget of 550-600k. A 3 bedroom townhouse is my preference close to public transport and a reasonable distance to city (~15km ). My idea is to live in the townhouse for say 1-3 years, and depending on how it grows in value, rent it out and move to a cheaper suburb like Tarneit, Point Cook etc which are still growing and comparatively cheaper, and settle in an independent house.

    Does this approach make any sense? Are there any suburbs where I can get a townhouse for 550k within a reasonable distance from city and good access to public transport? Thank you :)
     
  2. monalisa

    monalisa Well-Known Member Premium Member

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    Hi @ozdreamz16

    Welcome to PC.

    You mentioned you want to see how the townhouse appreciates in value, and then deciding to move else where. What is your thinking behind this? How does increase in value tie in with the move?

    Are you personal circumstances going to change in 3 years? Why would you not want to live close to the city once you have a place so close already?

    You may have done this already, but worthwhile getting an idea on the goals you are trying to achieve, and how this purchase will help you get close to your goals.

    When starting out, it can be challenging determining what your strategy is - it could be a case of you don't know what you don't know.

    Speak to other investors, read up on here and somersoft forums to see what techniques people have applied with real estate investing - this may help you formulate your own strategy.

    Good luck!
     
  3. ashimashi

    ashimashi Well-Known Member

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    I personally wouldn't buy a townhouse if I had a budget of 600k. Then again, tbh in Melbourne townhouses are indeed a very popular style of accomodation for an increasing demographic which makes it a good investment. Specially in the right areas surrounding the CBD because they are always in demand and I don't think that will slow down anytime soon.

    If the approach makes sense to you, that's all that matters. Because what makes sense to you, might not make sense to the next person.

    Ps, in my opinion I don't think Tarneit/Point Cook will be "cheap" in 3 years. Point Cook isn't even that cheap now anyways, let alone in 3 years if the growth continues.
     
  4. ozdreamz16

    ozdreamz16 Member

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    Thank you, and thanks very much monalisa for the quick response.

    I am very new to the property market, so apologies if I am sounding stupid :). My intention of saying 3 years to move is that the rise in price of the first home will give me comfort to venture into buying the bigger second home. But I am open to any alternative suggestions.

    I did read a fair bit of the forums which has a lot of information, but I am struggling to make a decision in the current market.

    My short term goal is a house within 600k with close access to public transport (and freeway if possible) and a reasonable distance to city. A townhouse is the best that will satisfy my conditions in Melbourne at the moment.

    On a medium term basis - 3-5 years?, if I can move to a growing suburb to a bigger block, it would be good but that is not my priority at the moment.



     
  5. ozdreamz16

    ozdreamz16 Member

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    Thanks ashimashi for your response.

    Do you have a suggestion for good locations for townhouses or otherwise, within 600k? it would be great to know.

    I agree about your opinion on PC/ Tarneit - I was only saying on the basis of the current market.


     
  6. ashimashi

    ashimashi Well-Known Member

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    No worries :)

    I would have said Coburg/Footscray etc (because i really like these areas myself), but you are def priced out of those areas with a budget of 600k.

    Pascoe Vale is another one that comes into mind, nice place, around 13kms from cbd and i think you can still pick up a property in the 600k price range. Don't know how long that'll last though.

    West Footscray, I've seen in that price range still. Braybrook, Preston etc also worth a look.

    Ivanhoe/Northcote but i am pretty certain, you'll be priced out of those areas too.

    Then you have suburbs like Heidelberg/Fawkner which i think would be within your price range as well. (more so Fawkner then Heidelberg)

    It all comes down to personal preference tbh and also what your budget even allows you to purchase when you get down to narrowing down where you actually want to live. Those are just some of the suburbs that came to my mind, i have a lot of friends who live in suburbs like Footscray, Seddon, Yaraville, Fitzroy, Brunswick surrounds etc and those suburbs are absolutely magnificent.

    But this is not a typical area of the market i really look into anyways, but i hope that helped.

    Cheers
     
    Last edited: 9th May, 2016
  7. ozdreamz16

    ozdreamz16 Member

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    Thank you for your suggestion ashimashi - it really helps. What is your opinion on Oak Park, Glenroy areas? If I were only to look at CG in the next few years(3-5), what is likely to appreciate quicker in your opinion? A Towhouse in these areas, or a house in point cook/tarneit ?

     
  8. ashimashi

    ashimashi Well-Known Member

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    Why would you for example choose to go with a townhouse in Glenroy when you can afford to purchase a house on a decent block of land with a budget of 600k in the same suburb? I would buy a house/land over a townhouse every single time if budget allowed me too. (that's just me though)

    Glenroy distance to cbd- 15km
    Oak Park distance to cbd- 11km
    Point Cook distance to cbd- 28km
    Tarneit distance to cbd- 29iish

    It's really tough to say, i think a house/ decent block of land in Glenroy would be the winner. But If we are strictly talking townhouses though and these 4 suburbs alone, i would go with a house in Point Cook/Tarneit over a townhouse. Again, that's just me though.
     
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  9. Air_Bender

    Air_Bender Well-Known Member

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    What about Bundoora? There are plenty of townhouses going up in the area (particularly in Polaris) that might just be in your price range. Great public transport and only 18ks from the city. You shouldn't have any issues finding tenants as the town centre is next to La Trobe Uni and just down the road from RMIT.

    Cheers
     
  10. ozdreamz16

    ozdreamz16 Member

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    Thanks for your suggestion - Bundoora is good but as the 2 of us work in the cbd, we need train station access.

     
  11. ozdreamz16

    ozdreamz16 Member

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    Great - thanks for your inputs.

    Leaving the townhouse option aside - lets consider buying a block of land and a house on it, in your opinion, what would be the best option if the following were the requirements, if they can be met:

    1) 600k budget max
    2) nearness to public transport for city access
    3) best possible CG



     
  12. melbournian

    melbournian Well-Known Member

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    I personally would avoid point cook I think distance wise is a bit far and public transport is limited. I own a few in pt cook. Traffic is crazy and unless you want to take on home and land and want a new house that would be the way to go as it takes some ppl 8-9 months or more with the build which really do u want to spend that time building paying interest on - block of land and stage payments

    For that price range - You better off in looking these suburbs like Fawkner, heidleberg west, Heidelberg heights, Glenroy, Bundoora, reservoir, thomastown in the north east as I feel this has yet to take up compared to the east. I would forget abt getting a townhouse as the only townhouses or cottages that do appreciate are like in south Melbourne Albert park prahan St kilda, Brighton etc. I think it is not too far fetched to drive to the station and then take the train. Just abt Everyone in Doncaster does that.

    Sometimes you have to keep searching on and on and u sometimes come across a good buy.

    Take 32 Tyler street Preston 600sqm for 560k unheard of within the last 6 months in this suburb. Ard 12-13km to the CBD
     
    Last edited: 9th May, 2016
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  13. melbournian

    melbournian Well-Known Member

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  14. househuntn

    househuntn Well-Known Member

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    How much new development is going on in point cook/tarneit/trugagina? I was under the impression that there's a lot of new land/house packages causing an oversupply in the last few years. Has a lot of it been bought up now? The prices have been rising steadily for the last few years?
     
  15. pianissimo

    pianissimo Member

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    I was about to say it. Exactly what I think.
     
  16. melbournian

    melbournian Well-Known Member

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    I would avoid truganina as there is super big tip going in. Point cook was around 370-395k builds home and land last year home and land are around 430-450k now conservatively seen some sold for 470-480k. There is a lot of land though but it is developing with new infrastructure and schools being built. Lots of new migrants
     
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  17. ozdreamz16

    ozdreamz16 Member

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    Thank you so much for your time and inputs.

    All my peers are buying new houses and lands in truganina/ point cook /tarneit and even wyndham vale. Agreed the houses are new and flashy. . But i want some value for the land .. don't need a really new and flashy house ( not a run down one either lol) .. and as you rightly said there is so much of availability. In these areas ..

    Hence my attempt to get some alternate options

     
  18. ozdreamz16

    ozdreamz16 Member

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    @melbournian or others. . What is the minimum requirement for a decent block of land? 350 sqm? 500? Also any specific dimensions .. minimums for width or length etc that i should look for?

    Also are there any issues with living in a weatherboard house compared to bricks?
     
  19. dabbler

    dabbler Well-Known Member

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    I do not know melbourne well so take this with a grain of salt.....but......

    I think your thinking is backwards.....you should just buy a decent place well positioned further out in the area you like now.....why ?

    Because closer in has already gone up a lot and while it may still creep up, the outer area will probably close the gap faster.....you may find if you do it the other way that there is not enough growth in short term to carry out buying the second place.

    Your also talking about a million worth in these 2 which is ok if you have the money but may be a killer later if income is not enough.
     
  20. househuntn

    househuntn Well-Known Member

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    It seems quite attractive from a long term capital gain point of view, even if it takes a while to grow. But it might not be so good for investment? The price at the moment is quite accessible for owner occupiers...