VIC First IP Melbourne

Thank you very much . I have been to Melbourne few times but never to Geelong which I reckon I should visit asap.

 

Yep, you should! Geelong’s a great lifestyle choice.

 

You should definitely visit!

Geelong is chock full of employment opportunities, with it’s own CBD serving 200k people being in close proximity to every Geelong suburb. Plenty of public sector jobs have moved there as of late.

It’s close to beaches - not only is it a coastal city in itself, with beautiful views across to the You Yangs, but you get to be in close proximity to plenty of world renowned surf beaches as well.

Train acces is easy, with Geelong having a high frequency VLine service that takes an hour to get to Melb CBD. Not to mention, due to the marginal nature of South Barwon and Corangamite districts, Geelong gets used as a political football and isn’t ignored the way Melbourne’s West often is. Both parties are promising improvements to the train service, and the Coalition has pledged to increase speed limits to 110 on the freeway up to Hoppers Crossing.

Prices are well and truly within your range. Hamlyn Heights, Bell Post Hill, Herne Hill, Belmont, old Highton all worth a look. That’s just off the top of my head. I like your thinking about established house on big land. Don’t get sucked into buying new flashy properties, buy something which you can add value to.

Geelong also has low unemployment, and as I’ve just found out, a higher median weekly wage than Melbourne.

 

Thanks heap for your advice

 

My budget's based on what I would spend on my first investment as this range is serviceable. If I were to spend as much as I could borrow I'd be looking at around $800 - $850k however I wouldn't be able to service my repayments

 

Have previously been on the fence on whether I want an investment property or PPOR. This time last year I had plans to purchase an investment while still living with my parents however I am now leaning towards a PPOR with room mate system as this would help me service loans and tick the box of moving me out of home. I've always had intentions of living in the property for a year prior to leasing.

What do you mean by why wouldn't you than be leveraging the FHB grant?

 

I bought my first IP in Melbourne last year and similar to you, felt like I needed to 'spend as much as I could borrow' but this kind of thinking is what hurts you down the track...

So now onto IP2, I'm keeping a close eye on yields, value add potential and current/future infrastructure. With a strict checklist in hand, I'm letting the numbers do the talking. It was hard to get to this stage, but I realised I do need to be completely unemotional- it's simply a numbers game.

Tried sending you a PM to share my broker's details but wouldn't work. Send me a message and I'll pass on. Sounds like you need to get onto a good broker to map things out for you.

 

Thanks for sharing your progress. Sorry you must of misunderstood what I was saying, I'm definitely not looking to spend as much as I could borrow, I'm actually looking at borrowing as little as possible. Value add potentials is a big one for me as construction is my field.

 

All good. Given you've been looking for a year and the market has moved a lot since - you may be best to use this 'downtime' looking to invest in a different state perhaps? Then revisit Melb in 1-2 years like others have mentioned.

 

You said your looking for an investment to live in which to me doesn’t means it’s an investment (now) it means it’s a PPOR.
So because it’s your first PPOR you are eligible for the First Home Owners Grant. Pending what state you are in, how much the property is and whether it’s new or not can be worth a saving of up to 40k.

Just a head ups regarding your mate renting a room. Whilst this will definitely help YOU service the loan, no bank is going to factor this into their servicing calculator so you need to show you can service the loan on your own.
In the banks eyes you can’t have your cake and eat it too. The only exception to this rule would be if you provided years of tax returns to prove the income, which simply isn’t possible when first purchasing.

 

Still haven't pulled the trigger but I am clearer on what I want.

Decided I am looking for a PPOR somewhat close to work which is based in Yarraville 3013. Minimum 2 bedrooms & garage and roughly $650k spending cap as I want to maximise first home buyers duty concession. I can front 40 - 50% of the property but I am unsure whether I should maximise or minimise loan amount.

What area would you buy in that meets this criteria ? Avondale Heights, Altona Meadows, St Albans & Sunshine North seem to be the only suburbs that fit the bill.

 

Well a lot has changed from this post, one being I didn't secure a property. I am finally back on the market Jan 22, looking at up to 850k spend + stamps.

I was set on Brooklyn Vic prior to the last lockdown as block sizes are 700m2 and future dev potential (duplex or 3 units pending town planning). Then lockdown happened and I was out of work.

Plan is to live in it for a year as its closer to work and pay it down, then rentvest.

Where is everyone buying in Victoria ? Is anyone buying in Victoria anymore... ?

Thanks,

 

I'd target Seabrook for that money. Largest block you can find.

 

I probably missed the boat but Sunshine West seems decent. Not a lot of supply currently in Seabrook. Couple years back I was adamant on buying in Altona Meadows so am familiar with Seabrook, have attended many inspections there. Not a bad area, just prefer closer to CBD (even though everyone works from home lol)

Thoughts on letter dropping properties that aren't for sale in a bid to purchase privately / off market?

 

There's never a lot of supply in Seabrook. It's a smaller suburb and fairly tightly held. To me, Seabrook appeals more because of proximity to water.

 

My thoughts exactly

 

True, just want to reduce capital gains tax by living in it for the year.