First Investment Property in South East Melbourne

Hello Members

I have been lookin for the investment property in south east Melbourne from last 2 month.

Budget :475 to 525 K
Preferred: Housr or Unit

I have been to few House and Unit auction in last few week and came to a conclusion that in my budget l can get only a Unit.

I have recently look the below Property and thinking to put an offer for 490000.

2/22 Jackson Street Croydon Vic 3136 - Unit for Sale #126028298 - realestate.com.au

It's a 2 bedroom unit under body Corp and 1 Km from Croydon station.

Can I have your thoughts on this plase.

Regards,

 

Hi, Y Man.

Thanks a lot for your time and comment.Is 490k too much offer for this property? I think in 420K i won't be standing a chance to

 

Unit #1 sold last year for $381,000 is there any particular reason why this is worth $490,000 ??

 

LOL - I got a house for sale. Its advertised for $550k but please offer me $620k.

 

Its called a boom

However, I would also be looking at the rental return on this one? How much out of pocket, especially now that Melb has been running hot for so long and interest rates are on the rise. No fun holding property when markets are close to peak?

 

Not in line with my strategies.

Rent too low. Too small for the money involved.
Much better options in other areas. Any specific reason you want to invest in Croydon and spend this much.

Regards

 

Hello APK
The main reason to offer 490k is to get the chance to acquire the property. But looking at the response I got to admit that I am putting a bit more to offer.

 

Hi eletronic_exp0430

Do you think the property will sell on advertise range?

 

Hi Ashish
The main reason to invest in Croydon as I lived here and liked the area. I agree it's too small for the money involved and rent is 305/Week.

Can you please tell about the other area.

 

Assuming you were to borrow the full amount and buy at $490k (4.89% IO) and rent at the stated $300/wk.. and then taking into account only water, council rates, and a 7% agent fee.. your cashflow would be -$12,500 a year. Then there's strata?, maintenance, insurance, vacancy etc..

 

Hi HT1,

Getting a place to live is a goal for most. I do understand that. I have thought against the notion and went with rentvesting option.

I would suggest you to visit places like Rockbank, Werribee, Tarneit, Armstrong Creek, Mickleham, Geelong.

These places are in high demand and you can get a decent house at a ballpark figure of 420k.
These places have a potential of 360-380 per week rent. So less pressure on your pocket as well.
Lastly, many of these places have grown already and this is the peak of cycle but youve got to buy what youve got to buy. There is still a little room left for growth, i believe.
But you will get a bigger house in the same budget.

Regards

 

Hi Mike
Thanks a lot for your reply and calculation. Really appreciated.

 

It may be worthwhile to pay a professional buyers agent to do the negotiation. If I recall correctly they charge around $500 for just the negotiation service.
I would not love doing this over and over, but if you particularly like a property, it might be an option to consider, especially if it saves you 50 grand (even if it saves you a couple of grand).

 

Thanks Anthony

 

Y Man.I would love your help in this case

 

An update to this post Guys.

Put an offer for mid 4's and property sold above 480 K