VIC Footscray vs Collingwood 2020

I am toying with the idea of purchasing an IP in a solid market within Melbourne.

I am looking at a two bedroom OTP in the old infamous suburbs that have been revived through the 'pink economy', cultural diversity and proximity.
Collingwood is emerging from the ripple effect of Fitzroy and polishing its image with it's bordering of the elite East Melbourne.
Footscray's ideal vicinity to the city with a train station that will eventually merge with Melbourne Airport is promising. Barkly is no Smith or Brunswick St however.

Aesthetically, Footscray will always look like an East Berlin haunt but it offers a more affordable price point with views whereas Collingwood is bipolar and more expensive. You can pick up a small two bedroom established Collingwood apartment for 650K where new ones are going for 800K + (e.g. overpriced 'Holme'). On the other side of the spectrum, you can still get a decent quality OTP for 550K (2 bedroom) in Footscray that lands right next to a station, university and freeway access.
I understand Footscray is riddled with its fair share of colourful characters but I've had a motorbike stolen and car broken into in Fitzroy and offered many abusive substances in Richmond. None are perfect and every suburb has its dark-side, except maybe places like Balwyn or Kew.

The sun sets better in the west and I am leaning towards this side.

I love Melbourne and have lived North, South, East & West. These two suburbs are definitely front runners if I was a renter looking to work in the city and say goodbye to commuting. I'm confident i will get just shy of positive cash flow for either investment and CG within eight years with a two bedroom apartment.

Can anyone enlighten me on their purchase/s or experiences with these potential suburbs as investments for a two bedroom apartment?.

It's all about place economics for the future of Melbourne as the infrastructure invested in the outer suburbs has been ruined by our state government as the daily commute will become the main benefactor when choosing where to live.

 

Why must it be OTP?

 

Footscray vs Collingwood 2020
FIRST GAME NEXT SEASON
CAN'T WAIT!!!!

 

The mistake you should avoid is not location.
The mistake is OTP.

 

I second this.
The new OTPs apartments in both areas are often crappy shoebox size apartments with little land value. I don’t foresee good Capital Gains arising from these types of properties.
If your budget doesn’t allow you to buy a property with land in either area, I’d be leaning towards buying an apartment in one of the older brick walk ups and renovating it. The rooms are larger and usually closer to amenities like train stations.

I went to high school in Footscray more than 10 years ago, and there are definitely some parts of Footscray that are gentrifying but there’s still a long way to go. If you have a long time horizon to work with,15-20 years, could be a good play. Less than 5 years, wouldn’t bother. commuting from Footscray to city isn’t as great is it would seem, trains are usually full from the outer suburbs and can be hard to board in peak times.

Collingwood, good opportunities if you can find a unique property, like a warehouse conversion or terrace house. Some of the high rises in Collingwood remind me of the old kengsington commission flats.

 

Footscray and even Seddon are starting to build up and gain the fancy cafes that scream gentrification, OTP always a worry IMO with what we have heard in the media recently.

Footscray some of the most affordable terrace homes in Melbourne, I'd love to jump on one of them.

 

Thanks for this insight. Love hearing from those who have lived in Footscray.

I would agree that Footscray has a very long way to go before it has more appeal but I think it's grit and cultural appeal is what gives it the edge over other places for those wanting to rent in the future that is more affordable. I also agree that apartment quality is dumbing further down. I still can't fathom how someone could buy an apartment without an island bench in the kitchen. Insane and very unappealing. Footscray have many apartments going right up next to the train station which i do not think will come under value from the banks with OTP.

Shame about the platform drama. I can imagine the backlog of commuters as they all bottleneck through Footscray to get into the city. Unfortunately Melbournes town planning is archaic and they are still yet to build more stations that connect new suburbs, instead filling in land with more sprawl.

I believe Collingwoods aesthetic is leaning towards more bohemian. I like what is happening there as glass skyscrapers that we see in Docklands are boring. We should sustain 'gothic' as opposed to 'metropolis' as Melbournes weather compliments this. Gurner was asked to redraw plans in Collingwood with his 'Victoria & Vine' project because his last plans were so out of touch.

Unfortunately any warehouse conversion in Collingwood is in the 1 million plus mark but there is still a huge difference in old and new apartments in Collingwood. A 200K difference for two bedroom apartments of the same size.

 

Offseason needs shortening, its unbearable

 

Even those terraces are becoming out of price point. I do agree Footscray boasts culture but the unsightly dockyards when entering the city will always create an unwelcome feel.

 

Cant really comment on either area as im not there, but OTP is generally a bad idea everywhere.

 

I understand OTP gets a bad wrap with the downturn recently, also the highest amount of dwellings will be proposed to be finished in Melbourne next year. However they will be absorbed and was wondering if OTP is really that bad given it gives you time to save more and gain capital while the property compounds interest? Surely it can give investors some head start.

 

Give an investor a chance to save more once purchased and reap tax depreciation on a new dwelling?

 

Footscray is great place to live imo.

 

Agree with Traveller99 and drfuzzy. You should avoid OTP (or even existing apartments). Both areas have industrial parts that are likely to be rezoned to build more apartments.

Buying a Torrens titled property (which is likely to be a Victorian terrace in the areas you mentioned) might be a better choice, unless it has land tax implications to you.

"The infrastructure invested in the outer suburbs has been ruined by our state government " -> I won't say it was 'ruined' as the state government's plan is to focus on the inner city area and you will continue to see more infrastructure built close to the CBD, which is very different to what was planned for Sydney (three cities with multiple growth nodes).

"Melbourne will be a city of 20-minute neighbourhoods. Residents will still commute out of their area for work, but most of their daily needs will be a short walk, bike ride or public transport trip away."

Source: https://www.planmelbourne.vic.gov.a...9/377127/Plan_Melbourne_2017-2050_Summary.pdf

 

Collingwood and foots are two very different areas. Foots is by far the cheaper alternative due to it being further from the cbd.

For under 700k you may be lucky enough to snag a 2 bed house on small block. Check out adelaide street.

Huge supply glut of high rises about to hit foots catering for the VU student demand which is crazy considering how far it is to the cbd. Also that Egate rail yard area along dynon rd near south kensington is ripe for redevelopment.

The sun can be annoying. Youll cop it right in your face driving to and back from the city.