VIC First investment property

I am looking at buying first investment property in Melbourne. With a budget of 440k where do you suggest to buy? I am mainly interested in capital growth. I know my budget is low considering prices have gone up recently but any advice on suburbs that I can focus into with my budget.

 

Are you looking for a house or a unit?

With a $440k budge, you might be able to find a house on the fringe suburbs in the west or south east. You might still get something in Werribee or Hoppers Crossing. I think there's still growth potential there.

You should be able to get a unit within that budget, probably in the middle to outer suburbs.

Realistically though with a $440k budget, if wanting a house you might be better to consider Geelong or Ballarat. Melton or Baccus Marsh would also work.

 

This might sound a bit left field but i would look at phillip island / inverloch
st leonards/portarlington/ indented head
And possibly anything on the surf coast out to apollo bay

 

Werribee (just, not if you wait a few months IMO), Norlane or Corio. All of these have picked up recently and they are still relatively cheap when you consider commute times and cost of living.

 

440 max? including stamp duty and legal costs?

 

Thanks for the suggestions. @private_number 440 is purchase budget...stamp duty would be separate.

 

Hi @Jasper16

You can still find ample options.
As already has been suggested, try something in geelong and north east still offers places in this budget.

You need to be quick in making decision mate, else you will loose out on some of theast available opportunities.

Regards

 

Not sure about this

I wouldnt be rushing into melton or norlane (its not even melbourne but for some reason people think its commutable). Plenty of land around melbourne and 18 new 'suburbs' are being released.
One thing you can count on is that when the boom slows / ends is that these new estates/suburbs will be selling houses for around the 300- 350k mark
Thats what they were selling for before the boom - blue collar incomes are on a downward spiral and the cost of building materials are getting lower, once demand slows then these new places will be selling for cost + 20%.

I would.still look at geelong but i wouldnt fixate on norlane because its closer to melbourne.
I would be more inclined to look on the opposite side of geelong as its just as close to geelong cbd and closer to surf coast

 

Yep. Id look towards the eastern side of Geelong as a long term investment for that budget. Stretch your budget closer to the 5s and you may find something in Belmont.

 

I never said norlane or corio or melton. I totally agree with your analogy but there are still places worth considering. Land may be more but the way it has grown in last 10 months. I wonder one wpuld ever see these prices again?

The budget is 400k. The places that i had in mind are growing, amongst the target of fhb (not investors) and have ample growth potential.

Cannot name openly for obvious reasons.


Regards

 

Yeah fair enough , apologies
I get a bit over excited sometimes

I just recall what happened at the end of the last melbourne boom (2011?) in the house and land areas. They were all 400k and then a year later the same product is only 300k.

I dont think anything much has changed, still plenty of land around north and west melbourne

 

Hmmm, maybe I cant beat the experience you have. This is my first boom and i seem to have cashed it.

I give same examples but here are some numbers.

Land bought in 190k north of melb early this year is now 265k
Land bought in west/ south west for 165k early this year is now 225k.

I wonder if we are ever going to see these prices again.


Regards

 

Hi @strongy1986 ,18 new suburbs coming-from where can I get any details (Melbourne planning site perhaps ?)

 

I think op needs to buy strategic plots of sites based on what one wants to achieve- there are still plenty of opportunities

Norlane is another Logan - will take a while before it changes. And end up changing multiple HWS and chasing down tenant damages and rent

I used to do the H&l but no longer do this though there is a lot more higher CG opportunities in Melbourne atm - werribee is one

 

Does any one think buying land and building house in the new estates in melbourne west a good idea for investment?

At the moment there are several land being sold in melbourne west. I was told that it gets sold out just in few minutes. I just wonder who is mostly buying these? Investers or owner occ? They seem to be overly priced.

 

I'd agree with @melbournian. Set a budget, family home, a place nice enough that you'd live in and as close to the train station as you can get.

Werribee can be hit and miss with tenants, but a neat tidy home and you'll be good to go.

Edit: you'd be stretching your budget and it'd be worth noting that you'd be negatively geared. It'd be your best bet for capital gain for that budget in my opinion though.

 

How close to the train station is too close in your opinion?

 

Just my opinion but I go for anything walkable to a station. Unless it's directly on a train line - a block back would be no problem. I lived in a Kensington place a block back from the station and there was no noise or anything from the trains. Super convenient for getting up as late as possible for work too

 

On the same note history has shown that surf coast holiday areas are second to fall in price after big dollar blue chip suburbs.

I think OP should look for 2br 1970's brick (less than 6-8on the block) flat as close to cbd as possible.

 

did you sell them and cashed out?