VIC First IP: Altona Meadows or Point Cook

Discussion in 'Where to Buy' started by Becs, 17th Sep, 2017.

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  1. Becs

    Becs Member

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    Hi everyone. I am hunting for an established house for my first IP and currently looking at Point Cook and Altona Meadows (with budget of around 580K). Any thoughts on which of these two locations is better to buy and will yield better gains in the future? I know no one has the crystal ball to predict the future, but some guidance on what to consider so I can make an informed decision will be great. I am also quite new to property investments and still trying to get my head around my strategy. Any inputs from members of the group is highly appreciated. Thanks in advance.
     
  2. Cimbom

    Cimbom Well-Known Member

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    I think you need to increase your budget for those suburbs
     
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  3. Becs

    Becs Member

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    Good point. With my budget and current search through Domain and REA apps (have not engaged any agent yet), my budget is 'just 'there' to get into those suburbs. So I will try to fit to my budget the type of house that the budget can afford and potentially increase the budget as well.
     
  4. Westie

    Westie Well-Known Member

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    Both will do well in the long run. What you need to do though is ensure you can hold given the rental yield will be poor. Buy under market value, seek to add value (reno for instance) and go from there. If you -ve gear too much you might not be able to purchase another IP any time soon (this is assuming I know nothing of your financial situation). Good luck though!
     
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  5. Becs

    Becs Member

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    Very good point and this is something that I have covered but yeah should not -ve gear too much. Also, I am choosing between Point Cook and Altona Meadows over other suburbs in the west like Tarneit or Truganina because I think PC and AM will yield equity earlier than the other suburbs (based solely on their location being closer to the city). Is this a fair assumption?


    This sounds really good and the way to go. But, pardon a noob question, how do I know that what I am buying is under market value? Is it solely by comparing the selling price to be below the median price for similar type of properties in that suburb? How do I spot those properties being sold under market value?

    Thank you very much!
     
  6. Westie

    Westie Well-Known Member

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    Tarneit and Truganina - aren't the prices too high for what they are worth? This said, they'll both keep rising in value and moreso when the train stations have been built and that new shopping center's completed. Keep in mind the stations are only on paper yet and likely 5-7 years away at the earliest. Were you thinking of H&L packages in these 2 suburbs? Personally, I wouldn't buy in either, the boat's sailed, IMO at least. If you do a build and sell, you might make some $$, but keep in mind titles are 18 or more months out. I wouldn't do it.

    PC and AM - both established suburbs. PC looks more upmarket than AM, both aren't far from the water. PC has the Alamanda (something) school which apparently is popular. I was driving along Sneydes the other day and happened to go past this estate called Life Point Cook and the land was at eye-popping prices. 512 sqm was $500k, 450sqm was $450k. If I were to buy, I'd go established in this school's zone (if it fits your budget, likely wont).

    This house, IMO, was under market value. Most houses in AM are in high 6's, low 7's, some higher. This particular house was listed at $540-$580k - minutes from the trains, close to the freeway. Value to be added - remove the overgrown vegetation at the front of the house (look how bad it looks), carpet's probably okay, remove the ugly fans and install downlights, the bath needs a little love too (maybe a $7-10k reno, likely less?) and this house might be worth $650k. These are the types of houses that are under market value and lower than most other properties on sale.
     
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  7. google boy

    google boy Well-Known Member

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    boat has already sailed in altona meadows, for good property u need the budget of 750 k with stamp duty. even 550m2 block are selling over 650k now.

    personally altona meadows is more nearer to city and easy acees to freeway compare to point cook.
     
  8. Westie

    Westie Well-Known Member

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  9. google boy

    google boy Well-Known Member

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    dont worry about me mate, i have already bought in altona meadows 620 m2 block 4 months ago. around 600k. I recently did property valuation came 685k which is good sign, it is moving fast
     
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  10. Becs

    Becs Member

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    Yes, couldn't agree more.

    I initially contemplated on it but thought it's probably not the best way to go. I don't want to wait months for the titles.

    That's way beyond my budget.

    Thanks for this example. Wow you got lucky there and it is sold not even more than a week ago. I hope I could snap one soon too.
     
  11. melbournian

    melbournian Well-Known Member

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    @Becs - I would just forget pt cook or altona meadows - and go further to Werribee.

    These suburbs have jumped pretty much a lot so I don't expect massive jumps. The schools are a big thing in pt cook as well.
     
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