VIC First IP Melbourne

Hey Everyone,

I am local westie still living at home in Yarraville looking to purchase my first IP. I have a $550 - $650k budget. Looking to purchase a rental property in the west. I have had a look at Altona meadows, Point Cook and Hoppers Crossing.

Have only recently had interest in hoppers crossing as properties are quiet substantial in size and some have been built within 15 years.

Any feedback and advice would be greatly appreciated.

Thank you !!

 

Look at Wyndham Vale

 

Curious, how do you have a $100,000 variance in budget? This seems a lot.

 

Thanks will look at Wyndham Vale.

 

550k being ideal budget, 650 being max?

I've had 200k+ variance in budgets depending on location, property and future potential.

 

Yes, but you are not the OP, who said this is their first IP. I would of thought they would be a little narrower in range. I know I was with my initial purchase.

 

No i am not. I was merely suggesting a reason why the OP had such a wide price bracket

 

Time will tell if it's a good idea or not, but I bought my first Investment property in Hoppers Crossing a couple of months ago. Bought a 3br on almost 900m2 for under $680k.

Chose Hoppers as I wanted a large block and I was priced out of more preferable locations closer to the CBD on 600m2 as I wasn't comfortable with the higher holding costs in the current market.

The old 'land appreciates - buildings depreciate' quote resonated with me which is why I was focussed on land. Always wanted something I can add value to.

Once I was happy with Hoppers - I wanted to be close as possible to train station and close to the proposed Education City in Werribbe (hopefully there will be an announcement soon that this is going ahead) as this is what I feel will be the growth driver in the area over the next 10 - 20 years.

Not sure what the growth will be like in the next few years, but I bought with the intention of putting units on the block way down the track and keeping them for the income when it's time to retire.

Depending on how it performs over the next 10 years will depend on what I end up doing with it.

I am a complete novice, this is my first IP, but the feeling of buying and now switching off all my alerts from the real estate . com has been a huge relief.

I know I haven't made the best possible decision but I was sick of doing nothing. Plus since I don't know if it's been a good call for quite some time - I'm happy to sit tight and get my weekends back!

Good luck to you and whatever call you make.

 

Good on you!

At least you made a decision and followed through. Some people go their whole lives without doing what you've done. Too many people wait for the perfect, risk-free investment.

And your property doesn't sound too bad at all...

 

Thanks, Kate - I was at a risk of not taking action myself...

What helped was understanding that with so many options out there, and so many variables - it is near impossible to choose the property/location that will give you the absoulte best return on your investment...

Marinating on that for a while took the pressure off and helped me decide to jump in...

Please don't interpret that as not doing due diligence. The more research you do the better - but once you are comfortable with a strategy, and the location, just wait for something that matches your critera.. the house itself is the easy part. The research that you should undertake in selecting the right location is what takes time. At least it did for me.

 

Sounds like you've got a good head on your shoulders. Grats on the property!

 

Almost a year on and still in the same position. After many auctions and inspections earlier this year I couldn't bite the bullet and purchase a property due to uncertainty in the market. I was mainly focused on properties in Altona Meadows and in the past year it seems that property value has fallen / settled in this suburb. Where you would you buy your first IP for up to $650k ? Looking for minimum 2 bedroom & garage, that is semi close to Spotswood. Ideally first IP to live in with a room mate/s paying rent.

 

Might as well hold off another year or so now, there should be buying opportunities in 2019/2020.

 

Can I please seek your opinion about South Werribee and Sunbury. I looking for buying an IP in 2019. Thank you

 

Looking for investment to live in?
So you mean a PPOR?
Why wouldn’t you then be leveraging the FHB grant?

 

It is very odd that you think it is odd or that 100,00k is a lot. You should buy a property on it merits and have an open mind. I think it is odd anybody would just blindly spend as much as they could borrow and not on potential total returns, how it fits with strategy and other options for funds.

 

What's your buying criteria? Generally, closer to the trains (or other vital amenities) as possible.

 

Completely agree. A value investor will buy based on whether it's a good deal, not whether it it fits into their 'budget". In terms of serviceability it is also going to be dependent on yield, which may be very different at the 2 ends of the budget.

Plenty of experienced investors on here have chosen to buy multiple cheaper properties where they could have instead just bought one expensive one. What does that tell you?

 

I would like a place with easy access to train, good schools , established house with as much land as possible , close to employment hubs would be ideal. I do also consider the distance to CBD or to the beach.

 

Geelong ticks literally all those boxes.