VIC First IP in Melbourne/interstate, Where to buy?

Hi All

Much Appreciate if you can share your idea here.

I am in Perth, looking to diversify my IP portfolio. Currently, I only have 1 IP in Perth. I used to live in Melbourne and thinking to buy a seond IP in Melbourne. I noted Melbourne will build a new Freeway to link the North Freeway and the Eastern Freeway (or Eastern Link) If this is going to happen, will the suburbs (e.g. Greensborough, Wastonia) along the new Freeway will have a brilliant future? Some basic information of my position.

1. Mainly looking for capital growth IP (6%+). Can afford 3% yield/rent.
2. Family income b4 tax 200k. 100k each. So can play negative gain game.
3. looking to buy 600k to 1m IP. preferably with 700-900m2 land with potential to subdividing/redevelopment.
4. 20% deposit (120-200K). 4-4.5% interest rate.
5. I am actually open for any suggestion. Western of Melbourne? Brisbane? Hobart? Sydney maybe too high?

Again, Appreciate your shares!!!

 

I would be looking at Brisbane inner to middle rings, splitter with a good aspect, under the 1 mil mark IF the area for resale modern splitters is around the 1.3-1.7m . Worth investigating imo. Just need to make sure it matches your risk profile and you plan for the holding costs until you are ready to develop. Main thing though, you need it under a mil (preferably with a good aspect eg views) and the end stock value for each splitter to be 1.3-1.7m. There are probably other viable propositions around Oz to investigate. This is just one possible avenue. It wont be easy, but not impossible for the hungry, relentless chaser.

 

The North - East link is still only proposal stage with I believe 4? possible routes.
Opposition has also announced this week they will revive East - West link (state election next year) to cross city and link freeways to the West from end of Eastern Freeway.
Lots of proposals and will also depend on election result for possible outcomes.
Good luck with your search

 

Brisbane if your looking for 3+ years of holding. Its gonna come.

 

Thank you Leo, do you have any recommended suburb in Brisbane? Appreciate your respond.

 

thank you for your reply, any suggestion suburb? Appreciate your respond

 

take a look of this house is it worth to beat?
34 Scotland Avenue Greensborough Vic 3088 - House for Sale #126944754 - realestate.com.au

 

@craigc Do you have a link to the routes? I am starting to panic as I bought a property last year that I think is in the path. I have only realised this now! I am freaking out over the compulsory acquisition now as I probably wouldn't be able to borrow the same amount to buy somewhere comparable if I were bought out.

 

North East Link: Eastern Freeway, Greensborough route chosen for $16.5b Melbourne road project - ABC News (Australian Broadcasting Corporation)

A revised route through Greensborough announced.
Not sure of opposition route but I believe they support both NE link and EW link which has electorate support.
Will depend on election result this year.

 

I would just buy another in Perth
it ain't going any lower
600-1 mill can get you a house in Scarborough, Claremont , freo - heaps of nice / cool places
why you would consider greensborough and others for the same money is not making much sense to me. you also have to realise that the horse has bolted here in melbourne and the likelihood of decent gains in the next few years is slim

 

also it' impossible to get well priced development blocks in a hot / booming market. all the blocks with dev potential in melbourne are priced in / overpriced whereas the blocks with development potential in Perth are not much more than a normal block