VIC First Home Buyer - Where in SE Suburb?

Discussion in 'Where to Buy' started by ryan.tl, 8th Dec, 2020.

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  1. ryan.tl

    ryan.tl Member

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    Hi,

    Just joined this forum as it seemed like a place with a wealth of information!

    I'm in a bit of a debacle, wanting to buy my first home in this COVID market, looking at sub 600k properties.

    Three main areas I am looking for are:
    - Noble Park (Established Unit with big enough kitchen, dining, and 'yard')
    - Dandenong North (Old, Established Houses)
    - Pakenham (New House)

    Wanting to buy in it to live in for a year to get my first home grants and CGT exemption (afaik), and renting it out thereafter. Not too sure what my plans are like in 10 years but I'd think that this home is a home that I can eventually move into should I need to.

    Otherwise, wanting to hopefully buy 1-2 investment properties and use them to buy a house in a location I'd like (Dandenong North area or any place closer to the city along the Pakenham or Glen Waverley line). At this stage, I'm not even sure if that's possible or not, or merely a pipe dream.

    Currently living with parents, but might rent a room somewhere close to the city depending on my job/lifestyle needs. No pressure to move out at the moment, but I'd likely do so within the next 5 years.

    As for my thoughts on the suburbs:

    Noble Park
    - Seems a bit close to Sandown Race Course. I can hear the noise from where I'm living in Dandenong North. Not too much of an issue, depending on how frequent they are.Trying to get hold of the calendar at the moment.
    - Close to the train station. I foresee myself going to/from city as I quite like going out to explore new food places/bars. Might help with rentals too, although, again, a lot of units coming up there. Possibility of renting out room by room? Can't see this being such a viable option though.
    - A lot of units popping up there at the moment, and tenants seem to be of lower socioeconomic status. Unsure of how this will change over the next 5 or so years. Seems like vacancy rates are at 2% in Oct up from ~1.5% a month ago according to SQM research.
    - Nothing much in Noble Park itself. Shops are okay, there's a Coles there, but no redevelopments as far as I can tell (& there hasn't been much activity in the last 5 years in terms of commercial developments afaik). I'm probably better off going to Waverley Gardens (which is quite near) for my grocery needs.
    - Mainly units. Very hard to find a house here with that price. Appreciation for units afaik is usually half that of houses, unsure if it will appreciate much in this market and with new ones popping up.
    - Still accessible to M1 and princess highway, although not super close afaik. My road knowledge is not the best.

    Dandenong North
    - Not close to train station
    - Landed properties with generally higher appreciation, but lower rental yields. Not too sure what kind of demographics I will get for renters but,
    - Vacancy rates relatively stable ~1.7% I think, so I guess purely data-wise that's relatively good news, although probably not a good indication as SQM research data covers the whole postcode, including Dandenong and Dandenong West, South as well
    - Close to M3, M1, and princess highway

    Pakenham
    - New house, cheaper, landed with average growth of ~5% over the last 10 years, comparable to the other two suburbs.
    - Surprisingly very low rental vacancy (0.4%), and has been that way since the past year or so. Unsure of how this will change with many developments currently going on there at the moment.
    - Not somewhere I can foresee living long-term at the moment, although I am sure I will settle down and might live there if I have a family (can't foresee this happening until 35) once I get over the fact that it is very far from the city, as it has shops as well as Asian grocers.

    Considering my goals from above, what would you do? Happy to consider other places too.

    Apologies in advance if it is a bit confusing. Happy to elaborate on any and for you all to pick my brain!
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    You observations are good. Just note: NP has changed a lot

    It WAS a place where the brave would fear to tread - the station was a drug hovel.
    The whole things being cleaned up now.
    As you saw - lot of houses turned into units in recent time - and prices have shot up.
    As people have realised the affordability, many of the CBD workers have moved in, and there's been a change in the social class inhabiting in it IMHO.

    The Y-man
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    I'd probably look at EITHER
    • close to DDG hospy
    • or in DDG south of the stn

    Again, like NP, a whole heap of devs have happened in DDG near the stn (along Chelt rd is most noticeable) pushing prices up, but you can still get a 3BR unit (prob not house any more) in the area.

    Besides the train, there are a lot of employers in the area.

    Have you spent much time in DDG?

    The Y-man
     
  4. ryan.tl

    ryan.tl Member

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    Thanks for the input! I haven't closely monitored Noble Park prior to 2020 so I'm not too sure. I know it was bad before, but I just had the opinion that things will likely plateau from here in terms of development after the train station was built. For shopping centres, there's Parkmore and Waverley Gardens closeby, and for Asian groceries, and food, there's Clayton, Waverley Gardens, and Springvale closeby.

    When you mentioned CBD workers moving in, do you mean renting or buying?
     
  5. ryan.tl

    ryan.tl Member

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    By DDG you mean Dandenong?

    Definitely improving, but seems like a long way off before the demographics of that area changes, is my concern. So far I haven't had much to worry about regarding crime etc during the day, however, I still feel like the station has a bad rep especially at night, but I admit there's quite a lot of bias to this.

    Crime rates over there seem to be worse to, according to RACV's data here:
    RACV Burglary Statistics in Victoria: How Does Your Suburb Fare?

    I guess the reason why I'm choosing farther away from the main station is that I will be able to buy landed properties there for cheaper prices whilst still avoid the potential (keyword being potential) of being too close to the area.

    If I were to choose between units, I still think I'm leaning towards Noble Park just for increased shorter term ease of mind re: demographics.

    I'll take a closer look at the sections you recommended!

    On a side note, thanks for the fast reply! Since you are a moderator here, can I know why some posts have a state designated to them next to the thread name, whilst mine doesn't? Just wondering if I'm doing something wrong.
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    I'd say both.

    The Y-man
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    You set a prefix when you create the thread. Have done it for you.

    The Y-man
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    Yes - you'll notice I can't be bothered typing in the whole name across all my threads. I generally try to keep to IATA codes for capitals, but subs are a bit random!!

    And I don't always agree with the gov - eg Clayton Stn is designated CLA, my pref is CLY (no idea why - it's the code I've always used.... o_O)

    Burglary stats aren't the greatest to work from - let's face it it's very high in some desirable subs because there's more to steal. Street crimes, robberies, assaults ect would be a better indicator.

    Speaking of bias, I have a lot more bias against DDG North and Doveton for instance - just form many years ago when we used to joke about cars getting stolen within 5 min of parking etc....
    I only had a bit of a look at the area around Hammond Rd as my mrs got a job near there a few years back. Even over those 2 years, prices have mooooved.

    That's cool - I think it's really a matter of keeping an eye on that whole area and jumping onto a deal when you recognise one.

    The Y-man
     
  9. Pev

    Pev Member

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  10. ryan.tl

    ryan.tl Member

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    Thanks! All this looking at properties has gotten my head spinning

    Interesting no one spoke/elaborated on Pakenham.

    On a side note, in this market would you personally buy a unit or house?

    Regards.
     
  11. ryan.tl

    ryan.tl Member

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    Thanks for the info! Yeah that's a good spot too! I'd say not so cheap any more i feel that all the houses that are near the station are way out my price range, unless you could direct me to specific spots?

    If I were to buy there is probably made up my mind to disjoin myself from the city/inner suburbs.

    Fountain gate shopping centre does have it all for most people with families I'd think, and definitely booking form the link you sent me! Gonna be much more of a hub than if is now for sure. I'll keep a lookout!

    Do you have any other thoughts on units vs houses, of on the areas I mentioned above?
     
  12. The Y-man

    The Y-man Moderator Staff Member

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  13. DivndBuild

    DivndBuild New Member

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    I took the time to read all the above discussions. I wouldn't have given attention to some of them.
    Few things spotted in my eyes and thought i would say.
    Dandenong Nth is not too bad as convenience is always there in terms of commute . Price wise for house, its good (Considering the old houses)
    Well, you can get tenants, if you are looking to rent out after an year.

    I am not too fuzzy about Noble Park.

    Pakenham, As you said new houses again if you are thinking for renting out after an year, you can get it rented. But, it takes more time to find a tenant.
    Good, if you can buy an established house within 5 years old.
    If i am you, my preference would be Pakenham.
     
  14. The Y-man

    The Y-man Moderator Staff Member

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    Ok here is a completely left field suggestion:

    https://www.realestate.com.au/property-apartment-vic-clayton-134672322

    Got passed in for $360k today.

    In days gone by I would have said "forget it - it's in the middle of nowhere".

    By chance, I needed to pop into Woolies, so I thought I would check the new one at M-City (700m from this apartment). To quote Borat "I like it"! Full size woolies, food court, asian groceries and a Kmart. Shopping used ot be a sheer pain in the area - not so any more.

    Transport - 900 smart bus runs to huntingdale stn.

    NEW hospital being built across the road! (tenants in the future as well a monsh students!!)
    Victorian Heart Hospital – Monash Heart

    The Y-man
     
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  15. ryan.tl

    ryan.tl Member

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    Thanks for the input! Will consider it
     
  16. ryan.tl

    ryan.tl Member

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    Oh interesting! Yeah that would seem good for an investment! Not too sure what apartment renovation rules will be like because it could definitely use a touch up

    At this point I don't think I'll consider it though, although the proposition would be very interesting should my plans change!

    I am now keeping my eyes open for a specific small pocket around Narre warren still around 15 mins walking distance to the train station around shrives road to see if anything interesting there pops up!

    Seems more affordable and I can still possibly get a house (or a unit for much cheaper) and is not as far as Pakenham + with fountain gate in the vicinity

    The train station and the immediate surroundings, at least from a visual perspective, still seems a bit seedy from my recent memory.

    PS: sorry for the late reply. Not sure why but I don't always get an email notification re: replies, unless I somehow changed the setting.
     
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  17. Baza

    Baza Member

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    I grew up in the greater Dandenong area so I know Noble Park and Dandenong North very well. Based on what you mentioned, if you are comparing a unit v established house then the house wins. Like for like Nobel Park has better potential for growth if you’ve got land, but there are a lot of units there and a lot of supply on the market. Having a block of land and house in Dandenong will outperform.

    In terms of the suburb like Y-Man correctly stated, Noble was very rough area, especially around the station. Dandenong station is similar, probably even worse since it’s a main interchange. This has been cleaned up a bit now by the constant police presence at the stations. The nice part of buying in Dandenong North is that it’s not close to the station and low income units compressed together, it’s predominantly freestanding houses. To me it has a much more family feel especially north of Mcfees Rd and it’s very nice in the Rosewood Downs part that is predominantly owner occupied. You can still drive to Yarraman or Sandown station in 10mins if you need to.
     
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  18. The Y-man

    The Y-man Moderator Staff Member

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    I was a patient at Dandy Hosp when I was a kid and busted 4 bones in my arm :D

    The Y-man
     
  19. craigc

    craigc Well-Known Member

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    Agree with the comments above, I’d aim for established house around Dandenong North or Narre Warren if the train is an important consideration.
     
  20. Ben JH

    Ben JH Well-Known Member Business Member

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    Just took a look at the FY19 vs FY20 official crime stats of the relevant LGAs and suburbs:

    - Cardinia Up 17% | Pakenham up 24%

    - Greater Dandenong up 4% | Noble Park up 7% | Dandy up 3% | Dandy North up 19%


    - Casey Up 7% | Narre Warren down 3%

    Kinda surprised that crime rate actually went up fair bit given there was lockdown during Q4.
     
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