VIC First IP for $450k Western Melbourne (Werribee/ WV) or Geelong

I currently live in Sydney and I was looking to buy my first investment property. My options in NSW are quite limited given the existing housing prices here.

I currently have around 10% of the down payment saved up and want to go up to $475,000. I am quite young in my mid-20s, and my goal is to hold the property for the next 10-15 years without touching it and aiming for capital returns, while renting it out in the mean time.

The suburbs I am considering currently are-

1) Werribee, Wyndham Vale, Hoppers Crossing in Western Melbourne, they seem to be within 30 mins drive from the city and in the last few years have experienced high population growth. I am mainly looking at older houses that are selling close to land costs and are within 1km of schools and station. Might subdivide in the future, so will explore options when buying but not a priority for now.

Something like
29 Mopane CCT, Wyndham Vale (though this is a bit over my budget, 500m^2+ land)
15 Rock St, Werribee (1 km from Werribee station, 500m^2+ land, within my budget)

2) I was looking at Norlane and Corio. Geelong seems to be a high demand market right now and I can easily find properties in these 2 suburbs within my budget. Both these suburbs have train stations and a fast train service from Geelong to Southern Cross is planned. But I am kind of unsure if it is a good idea to invest in regional markets.

Any advice or resource recommendation would be greatly appreciated. Thanks in advance.

 

Norlane and Corio are some of the lowest socio-economic areas in Victoria. Not saying everyone's bogan there, but if you bought there just make sure you have a gun PM (no pun there!). Personally, I wouldn't buy there.

That budget is low for Werribee and Hoppers. You're going to need to be lucky to be able to bag a house for that money. I live about 10-15 kms from Hoppers, so ask as many questions as you want for particular areas after you've started to do some more research. 15 Rock St is probably going to pull about $500k I reckon.

 

Someone bought 15 Rock St, Werribee for 456k. I think that is very good price. Was it one of you @Westie or @Brad86 ?

 

What about Point Cook?

 

I wish it was me. That looks to be a bit of a steal, unless we're are missing something.

 

What about it? AMA about PC.

 

It seems like there are mostly new houses there, 450m^2 or smaller blocks going for $600k+ outside of my budget. I'm looking at existing properties around Hoppers Crossing, Wyndham Vale and Werribee for around $450-500k

No haha. I had been following it though, and it seems like a good price. I am looking to buy in 2 months time, I'm taking my time doing more research.

 

Thanks Westie, I'll ping you once I do more research. I am willing to go up to $500k, I know I can get something in that area (HC/ WV/ Werribee) within my budget.

 

As someone who is from Sydney and went to Melbourne, I strongly suggest you get yourself there and experience the areas you intend to invest in yourself. The Melbourne market can be vastly different to Sydney's - the rules of real estate that that you may have heard or been told could apply specifically to Sydney and may not apply to Melb/VIC. There are aspects of Melbourne's western suburbs that becomes salient when you visit in person that nobody could describe in words or summarised on paper that exists. One especially is travel time/distance to CBD. Melbourne is a lot more decentralised and the metro area is blessed with or suffers from (dep on your POV) from urban sprawl.

I personally like Corio and Norlane as potential investments (perhaps the train has left the station already in terms of CG) compare it to Mt Druitt, infamously known as the lowest socio economic area of western Sydney that even sprouted a television series and numerous parodies; is now undergoing growth outpacing the traditionally better areas of Sydney.

 

All the best with your search @Brad86

I had been looking around the West due to entry point, but was deterred by the current vacancy levels.

For example, Wyndham Vale has a vacancy rate of 5.5% according to SQM and a whole lotta rental stock listed!!! My preferred vacancy rate is less than 2% so I'm not having to compete against other rentals and continually dropping my rent, and this has always worked for me.

Another factor that you may wish to consider is the competition from newer homes - and there is AN ABUNDANCE of estates in these areas. All the way up to Manor Lakes, Melton South and beyond. From a tenant's perspective, would you prefer a run down but clean home on a larger block that you'd have to look after for, or a newer 4 bedroom, 2 bathroom home with aircon and a smaller backyard just around the corner for $10-20 more? I know which I'd prefer.

So definitely keep an eye out and as @Onyx_OCAU suggested, head down and look around the areas yourself to get a better sense of what it's like and also what to expect if you then take the leap before dropping 500k.

 

Thanks for the advice @Onyx_OCAU and @DoAndroidsDream

I am still considering Geelong, seems like they are Avalon Airport is an international airport now (but yeah, Covid happened), and with the faster train route planned to Southern Cross there seems to be high demand in Geelong now. Some people I know have bought in North Geelong and Belmont recently at $650k mark, big blocks of land, close to stations and other existing infrastructures. Corio and Norlane seem more affordable at this stage and has a lot of existing infrastructure like train stations. Sure it might be a bit of a hole now but might be good for CG in 10+ years time.

I think it might go the same route as San Remo in Central Coast (Mt Druitt by the beach), but overtime property prices shot up there.

 

Geelong is going nuts
People moving from Melb
Example, a property (duplex/divided house) on Eastern Beach rd Geelong went to Auction on Sat, listed price range 730-1125k, sold 1.93M....

Your budget may not allow it, but surely with this exodus there must be an oversupply developing closed in to the CBD ???
Maybe you can find a bargain there

 

Norlane West is worth considering, there's more OO's in this area than other parts of Norlane and sections of Corio, and it's very well positioned for just about any amenity you'd like. Close to the Ring Road brings the coastal areas into the picture, and it's maybe 15 mins to the Geelong CBD (unless you're stuck in traffic on LaTrobe Tce or Mercer St!)

If you check out the work of David Shih, he's done extensive groundwork in areas of Geelong, and he's bought in Newcomb about 5 years ago before it took off. Indeed Newcomb may still be of value, especially some of the planet streets which are generally all 60's brick ex-commission houses and it's a suburb close to everything and only 4 K's to Geelong.

 

I have one in wyndham 1.5km from the station i built it in 2017/2018 gone up alot in that time but still has a long way to go. $430k to build $600k - $650k currently The shopping centre extension is having an impact. I would have bought more there if i could!

 

I’d go the south side of Werribee if you can. The infrastructure built around it now makes it very appealing. The Duncan Rd interchange and proximity to Watton St are a big plus. Undervalued IMHO.

 

Was it a Buxton listed property? Those mutts are notorious for underquoting.

 

The OP would need a time machine to get to $500k prices for the “south of Synnot” area.

 

McGrath

 

Have you looked at eastern Geelong along the Bellarine Peninsula? Although it might be a bit higher than the 450-500k budget.

 

Also, do you have any thoughts on Ashford Park Estate at Werribee? I can build a 4-2-2 in sub-400 sqm block for low-5s, estimated rent of $400 per week. It's on the newer side of Werribee, though I don't see any existing infrastructure nearby.