VIC First IP with $500 - $550K West Melbourne or...

Hi Everyone,

After saving for some years, I have enough deposit to get my first IP. I have always been keen on properties but saving has been the biggest challenge.

I have been reading a lot on where everyone is investing/what are the best suburbs and now that I am ready, i am totally confused!

I started inspecting this Saturday and went to Laverton and then to Reservoir. I live in Truganina. Took me 45mins to drive to Reservior and I viewed three properties. I have read Reservoir has great potential but the houses are kind of getting out of my budget. I am questioning myself - Should I be driving all over Melbourne to look IPs? Or look at IPs in western suburbs as I am familiar with the area. For example a lot of people are talking about housing commissions around Reservoir (near Thomastown), how do I know where not to look? What part of reservoir is not the best for investment? Should I stick to one suburb and keep looking at the available properties?

Some of the suburbs that I have in mind are:

Reservoir
Sunshine west
Epping
Tarneit
Truganina
Laverton
Noble Park
Norlane (have been reading a lot on this suburb on property chat. My questions is, will the house go on rent due to low population?)

My goal is:

- Get an IP within my budget
- Hold it for long term
- 3 bedroom with a minimum of 500+sqm land
- Take equity out after 3 years
- Get another IP
- Rental return should be good


Any advice/tips from some experienced investors are appreciated.

I just want to make a sensible decision.

Thanks

 

Any advice guys?

 

Sorry but you can forget about Reservoir. That suburb has sailed and I doubt you'll find what you're looking for that price.

You can probably get something decent in Epping, close to the train station, hospital and shopping centre.

Not too sure about those other suburbs.

Good luck.

 

Thanks for the reply. Its interesting as I have been noticing that all the three properties that I have inspected in Reservoir, the agent mentioned the house would sell between 500k-560k but I dont find that correct. Looks like it is a strategy to get the buyer to attend the auction.

I have also noticed that most of the house coming up Reservoir and other close suburbs (including Sunshine West) are listed as 'auction'. Is this because Auctions are always profitable for the seller?

Thanks for your advice about Epping, i will check the area.

 

Of course they'll under-quote you a figure they know will entice you to turn up to the auction. Their whole game is to attract as many potential buyers as possible hoping for some spirited, emotional bidding which usually results in the property selling for way over asking price.

Check out recently sold properties in Reservoir on realestate.com.au and see exactly what you can afford with your budget. I think you'll soon find out it won't get you far.

Epping still has some stigma associated with it but this is rapidly changing. Go to any auction for a property on a 600m²+ piece of land and 90% of your competition will be Asian buyers/investors. The same with Mill Park (where I live).

But I still think you can find something decent in Epping. Look at properties around the train station.

Good luck with your search.

 

Yes but you need to consider the type of houses being built in Epping and the competition you will have with this relatively new estate. You may find it difficult to rent it our at a price you want as every other investor will have a spec home in Epping who will be competing for the same market share.
You may find a good home with the things that fit the bill but the rental income or finding the right tenant may be difficult. If you can look into the more established areas which are closer to CBD it may work out better in the long run.

 

I was actually referring to the established part of Epping (i.e close to the train station).

Definitely forget about the new estates.