VIC Footscray?

To me ( as a non melbournian ) Footscray is a no brainer .

Working class suburb 5km from the centre of the centre of Melbourne . Ripe for ( and already undergoing ) gentrification.

You can get a 2 bed unit for under 300 that grosses over 5 % .

Interesting thing is that while houses have gone up a fair amount from their pre GFC peaks , units haven't and are around that peak , so that suggests there may be room to go in the current cycle .

We've been having a serious debate about whether we buy there or not . Only reason we've decided not to is widespread opinions that Melbourne is peaking ( but it hasn't gone up as much as Sydney ) and our familiarity with Brisbane ( which hasn't gone up as much ) so it seems a more sure thing .

If I was buying in Melbourne , Footscray would be close to the top of my areas of interest . I might change my mind once I saw it , but the first area I'd be looking would be the Eldridge / empire rd . Cheap entry level . Might not set the world afire in the next five years but .... That cheap , that close to the CBD

Cliff

 

Yeah I saw the riverside project which looks really nice but again, plenty of articles warning about over supplying of apartments in inner city... That makes things more confusing.

 

Personally I wouldn't be buying new .

There will always be demand for properties at the lower end of the spectrum . They're unlikely to build too many 2-3 story walk ups ..

Cliff

 

Yeah, I like those old two three storeys unit, they are so spacious, but I am not familiar with that market whether they have solid growth history ...

 

I had a look at some and there were sales for similar price around 2009 .

Cliff

 

I'm curious to know about the future investment potential of Footscray.

There are many units being planned for Footscray (I believe the number of units to be built in Footscray was in the top 10 in Australia) and have also read about plans for Footscray to become the first University town in Australia.

I know there would be an oversupply of units in Footscray which would probably lead to a decrease in unit value, but would this typically have a flow on effect to house prices as well?

 

Footscray is good however already quite expensive as it is and so is yarraville. there was a house sold 2m couple weeks ago. It has a very strong ethnic vietnamese demographic. i've been watching maidstone quite a bit been to a lot of auctions etc. it is quite a good suburb close to highpoint SC less than 12kms to the CBD and lots of sub-div sites.

 

Units dun do well in the west - they are more better geared to the east where properties are in the millions than many who wish to live there have to go with the units, villa, townhouses. examples of this are camberwell, armadale etc. Even small old 2 bedroom apartments in armadale in some streets are selling close to 800-900K.

 

The ship has probably sailed on the inner west in some ways (particularly for Yarraville and Seddon) however the gentrification process in Footscray CBD has only really kicked off in the last few years so may have some legs yet. The hipsters and associated burger/BBQ/bar/barista places have started to filter into Footscray CBD since the Laneway festival moved to Footscray a few years back if you consider this some kind of sign of change for inner suburban locations. Seddon in particular has gone gangbusters in the last 2-3 years - property prices have skyrockets and Victoria St in particular is teeming with twenty-somethings and edgy restaurants/cafes; it wasn't that long ago when the street did not have a single food option on it.

I bought my first property in West Footscray (north of train line, 3.5 bedroom californian on one of the nicest streets) for $342k back in 06, easily worth $800+ now. My other property is a 2 story new build in Banbury estate (West Footscray station) bought 3 years after build for $789k; an identical property just behind sold for $1.2m at auction only a few months back. I feel pretty lucky to have gotten my foot in the door reasonably early.

 

I like seddon it has quality cafes and the feel is like Albert park, south Melbourne and middle park, good buys in btw being a Westie what's ur views on Maidstone braybook and sunshine area s? They're not seddon or yarraville

 

Would not live in Braybrook personally but it might stack up for a cheap IP if the return was right. It's always been the wrong side of Ashely st.

Sunshine (particular parts of it like Matthew hill where there is a good housing stock) is doing well, further out obviously but people who would have bought closer in a few years ago and are priced out are definitely moving out there.

 

Just having a look at some low-entry cost options around Melbourne - have come across the old low-rise apartments on Eldridge & Empire in Footscray... does anyone out there own in this little part of town, or has anyone been through and checked them out?? I'm wondering if this area is as ghetto as it looks in the pictures don't google maps?

On appearance it reminds me of Campsie in Sydney - streets and streets of old 60's & 70's brick blocks.

 

Is the shopping centre still nicknamed "knifepoint"?

 

There's a lot of apartment stock coming through in Footscray and a lot of existing.

Try looking for old units around Seddon, Yarraville or near the station or Barkly St in West Footscray.

 

Empire st I would avoid - it is very ghetto.

 

I would only get houses in these areas. I don't think units will have much growth

 

Eldridge and empire are very gross I've looked at quite a few. It's the right stock in the wrong streets. All of those streets are pure low rise 70s flats. You want to look for those same style flats surrounded in the owner occupier houses. I've bought a few units just like the eldridge and empire flats, in footscray but next door is proper houses. I paid 280 for a 2 bedder that rents for 310 just 11months ago Not bad holding cost for controlling the amount of land content the old 70s flats offers.

Ghetto could be a good word to describe it.

Don't get me wrong the gooses who are buying h&l out in the Greenfield estates (campbelfield tarneit melton sunbury) with zero land value.
Would be infinately better buying in eldridge street.

 

Land appreciates buildings depreciate.
The building is only there to cover holding costs.
So saying "units won't have growth" is way too blanket. Ask instead how much your share of the land Is.
Medium-high density land is split so thin amongst their 100+ residents.
But a decent size block with 6-8 owners is the gold here.

 

I don't think so. There is very limited demand for units in the area therefore the price will not grow much. There are more desirable areas close to the city with units for not a whole lot more money that people would generally prefer and which would therefore be a better investment overall.

If pretty much everything in Melbourne has grown significantly in recent years and these haven't then that says all you need to know really.

 

I don't think any units have gone up in Melbourne recently have they? From what I've been reading most apartments have actually gone a bit backwards, except maybe in the latest quarter.