VIC First house/investment melbourne

So I am 27 years old and feel as though I am getting further and further away from getting into the market. I am big on investing, all of it stock market but looking at getting into the property market. Budget is 500k, I am from south east suburbs and the prices down here for the house you get and distance from city is crazy!!

So I have been looking at northern suburbs, mainly epping for my budget. It will be an investment for my future as I am still young. Does anyone have any thoughts/tips on investment in epping?

My biggest concern is not being able to get it rented out, but if i can rent it out 90-100% of the time then I won't have any problem paying it off.

Thanks everyone.

 

Hey @Markfrazer89,

I would make sure you have a good amount of emergency savings instead of using all your money on the deposit. I would suggest that you wouldn't have too many issues renting it out but you can always get vacant periods, tenants not paying rent etc - you don't want to get caught out.

Also make sure you've calculated that you can pay back the mortgage even if the interest rates rise a couple percent.

Good luck!

 

I won't be using much of a deposit, I want to keep most of my money in the stock market, so will always have it if I ever need it Do you know much about the northern suburbs? Also do you know where the best place to go would be to find out future developments/projects for the area, as in transport/shops/leisure etc?

 

you can find some valuable information from council website and home | .id the population experts

 

you can rent out anything at the right price. if you're going for a high LVR then you will most definitely be negative geared at current prices so make sure you know how much you can afford to pay out each week. Don't expect rent to go up considerably anytime soon, you're buying in a mid-lower socio-economic area amid lowest wage growth on record.

As your stock market money is now not offsetting a loan, consider that you will need to make a solid 5-6% to even break even on not offsetting your investor loan.

I live middle-north and can say that tenants will vary massively in this corridor. considering an Epping house will be relatively new, you dont want damage/tenant not paying so choose wisely.

Townhouses and units there seem over-priced.Odds are people choosing a unit are doing so purely for cost purposes out there, and when the basis a product's value offering is that it is cheap, don't expect it to go up in price.

Personally i'd focus on detached houses. Its a family area so imagine you have 2 kids and a partner and choose the house that suits. ie. buy something that people would want to live in.

 

Cheers everyone, appreciate all the replies. Definately going for a house and not a unit/townhouse that's for sure.
Thinking about taking a look at some houses down there soon.

My only concern is if the housing market decides to correct itself a little, but it is a 10-20+ year investment so shouldn't matter too much. Would just be abit frustrating I guess.

 

Why limit to melbourne? Many other parts of Aus in different parts of the cycle.. especially with your situation/goals

 

Each situation is different - I think epping is a good suburb which is in the same discussions as sunshine was couple years ago and st albans. From a rental perspective - agree with @y-man
it is not an issue to rent out - there are plenty of renters (just get something walking distance to the train station)

As for low socio economic issues comments by other posters - epping is a combo of new housing (h&L) and older houses. it does not have the appearances in the inner north like preston, Northcote, thornbury, reservoir which has large scale housing commission or social housing grouped together or across the board which is normally of low socio economic . So the information is really not correct and shows the difference if someone actually who has been there to see the suburb go to auctions and see the surroundings.

Also it is one of the nominated ACZs which is promoting re-development. It has pacific Werribee and also the northern hospital and there is plans for a new hospital by riverlee. I didn't realize medical workers such as doctors or sonographers are of low socio economic background. BUt anyway, I have a cousin who lives around there who works in northern hospital.




There is also the fruit market and Costco coming in. the h&L markets are also selling like hot potatoes.

Melbourne's Wholesale Fruit, Vegetable and Flower Market
The market is being relocated to a new site in Cooper Street, Epping
The market will have capacity to provide more than 100,000 square metres of warehousing and users will be able to enjoy the opportunities and benefits of being part of a fresh food-related business.

Costco
We approved for retailer Costco to establish its third Victorian outlet in Epping. The site at 20 Jovic Road, Epping will include a petrol station, tyre outlet, bottle shop, hearing centre, optometrist and car parking. This is another great boost for the local economy and the Epping community and will bring over 300 direct jobs and 200 indirect jobs to the area.

Northern Hospital
Construction of stage 1 of the south tower development is currently underway and visible from Cooper Street. This will provide 32 additional inpatient beds and 2 'shell' floors slated to become a new intensive care ward and office space/back-of-house services in the future.

 

I think you meant Pacific Epping.

Also don't forget Westfield Plenty Valley which is only a 5 minute drive away. The new restaurants and Village Cinema additions to the complex are almost complete.

Epping is a great suburb. I live in Mill Park but a lot of my colleagues reside in Epping and they're all very positive about the massive infrastructure spending going on here at the moment.

 

I'm seeing a lot of investor activity in Mill Park at the moment (freestanding brick homes and potential development sites are favoured), as well as houses in the surrounding new estates. Not much in Epping itself.

 

As a local resident I can confirm this.

I'd also add that the majority of winning bidders (that I have observed) are Indian nationals or from an Indian background. Chinese/other Asian buyers would come in close second.

 

Really looking forward to this. Can't wait!

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