VIC First IP In Western Suburbs

I'm currently in the market to buy my first IP for a long term investment (10+ years). Have been looking around western suburbs such as Rockbank, Wyndham Vale and Tarneit. At the moment I'm leaning towards purchasing an OTP land in Tarneit. Prices are around $300K for a 350 to 400sqm block. Thinking of building 22 to 24 squares 4x2x2 home. Rough total comes to around $500K all up.

To all the experts out there, is this a wise move? Have I missed the boat in these areas? Or should I rethink about my investment strategy? Any advise would be much appreciated.

 

I believe you've missed the boat by several months. Buy an established house in Werribee for less than $500k. Always run the maths to see if the figures check out.

 

I'd second the vote on something established in Werribee mate.

 

I do notice Werribee has been mentioned around a lot lately. I will look into this area.

I'm also still trying to understand the pros and cons between buying OTP and established when it comes to IP.

@Westie Would you be able to elaborate more on the calculation that you are referring to. I'm new to IP so I still have a lot of learning to do. Thanks.

 

Other thing with OTP land these days is the titles are so ******** far out, you don't know which way the market's going to head. Rockbank for instance has titles for the next stages at the end of 2019, probably early 2020. That's like 2+ years away. You might think - oh, I may get a free CG ride that way, and you perhaps will, but to me the risk is too great given we've had the boom for so long and like @MTR repeatedly has said, booms don't last forever. @sash believes Melbourne's got a year or so to go, so if you find a block that's due for titles soon and you can make the figures work, go for it. If not, and if I were you, established is the way to go in Melbourne.

 

Depends on your strategy. As an example you can buy established in Werribee for well under 500k and wait for growth (market dependent) or you can do a H&L in the low 400's in the same area and manufacture your growth (equity).
Both will see generic growth if the market continues to rise.

 

Wouldn't think there'd be much land stock left under $250-$280k is there now @Connor ? Riverwalk ask for ridiculous prices. Cornerstone probably better priced, but not premium.

 

Most of the under 250k stock sell out very quick. However that being said I did find a couple of 186k blocks available about 2 weeks ago that came back on the market. Riverwalk will be a great estate, but prices are certainly premium. I do like Cornerstone, especially being next to Harpley.

 

Hello Experts,

If I am getting approx 500sqm, corner block (but not square) in Riverwalk(Werribee) for somewhere around 260K. Is this a good investment. (No plans to build atm).

 

@Newfast, heaps of threads about buying land only here on PC. Look 'em up mate. When does this block title anyway?

 

I do not know 100% but sometimes Next year if I recall correctly.

 

Have you done the math on it yet? If not, see if the figures stack up. So much useful information here on PC mate, look it up mate, you really should.